Does visual merchandising, store atmosphere and private label product influence impulse buying? Evidence in Jakarta

Abstract

The phenomenon of the proliferation of retail business in Indonesia would be coupled with a very tight competition among them. Retailer has forces to create the right strategy in attracting consumers' buying. This research is analyzing the factors that influence impulse buying which measured by variables as visual merchandising, store atmosphere and private label product. The data is obtained by distribute questionnaire to 125 respondents. The hypothesis is tested using Structural Equation Models (SEM) with Partial Least Square (PLS) as statistical tools. The result revealed visual merchandising which is measured by windows display, mannequin, floor merchandising and assortment has positive and significant effect on impulse buying. Attractive store atmosphere has positive and significant effect on it which is measured by lighting, layout, visual communication (color) and scent on the store. The mount of impulse buying can also be affected by creating private label product. The unique packaging and low price really diluted by consumers. These three aspects proved become determinant factors affecting impulse buying.