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Store Layout effecting sales

Impulse buying in simple terms is the ‘tendency to buy a product/service without any prior decision or planning for the same’. Impulse buying is prevalent in almost every part of the world and marketers across the world have understood this very well. Through this research the author studies the impact of store environment and the individual characteristics on the impulse buying behavior of the consumer. From a managerial viewpoint, the research addresses an important question: does store environment induce more sales through impulse buying? If it does then retailer can invest more in store environment whereas if it does not then the retailer can invest in promotions and price cuts and lay less importance to the store environment.

The store environment has been studied in terms of layout, lighting, music and employees which provides an overall perspective to the study and helps the store owners to manage their store environment. Also the individual characteristics have been defined in terms of impulse buying tendency and tendency to enjoy shopping, which helps in segregating the customers.

The research was conducted with over 700 individual respondents with a healthy mix of 48% females and 52% males. The survey was conducted using a questionnaire where people were specifically asked about the number of items they bought. And the researcher helped them count the number of items that could be classified under impulse buying.

After analyzing the data collected, the results clearly showed that the store environment has a significant impact on the impulse buying behavior of the individuals. And most importantly it came to notice that among all the store environment elements, layout had the highest effect on impulsive buying. Though managers also need to invest in other elements like store personnel, lighting and scent and music. But if there is a budget constraint then the layout of the store should be given priority over other variables.

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