essay about merchandising business

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What Is Merchandising?

Understanding merchandising, special considerations, u.s. retail cycles.

• Merchandising vs. Service Company

Merchandising Strategies

Benefits of merchandising.

• Types of Merchandising Companies

What Does Merchandising Entail?

• Merchandising vs. Service Company?
• Four Types of Retail Merchandise
• Marketing Essentials

Merchandising: How Companies Entice Customers To Spend

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Merchandising is the presentation and promotion of goods that are available for purchase for both wholesale and retail sales . This includes marketing strategies, display design, and competitive pricing, including discounting. Merchandising is important for retailers looking to cultivate their brand, improve the experience of customers, compete with others in the sector, and ultimately, drive sales.

Key Takeaway

• Merchandising refers to the marketing and sales of products.
• Merchandising is most often synonymous with retail sales, where businesses sell products to consumers.
• Merchandising, more narrowly, may refer to the marketing, promotion, and advertising of products intended for retail sale.
• Technology is changing the face of merchandising, with electronic point-of-sale terminals to targeted and personalized mobile ads.
• Categories of merchandising include product, visual, retail, digital, and omnichannel.

Merchandising includes the determination of quantities, setting prices for goods, creating display designs, developing marketing strategies, and establishing discounts or coupons. More broadly, merchandising may refer to retail sales itself: the provision of goods to end-user consumers.

Cycles of merchandising are specific to cultures and climates. These cycles may accommodate school schedules and incorporate regional and seasonal holidays, as well as the predicted impact of weather.

Merchandising can take on different and more specific definitions in regard to different aspects of retail sales. For example, in marketing, merchandising can refer to the use of one product, image, or brand to sell another product, image, or brand.

The word merchandise comes from the Old French word  marchandise, from  marchand, which means "merchant."

Since retailers may or may not be producers of the goods they sell, measuring the gross value of all sales provides insight into the company’s performance. This is especially true in the customer-to-customer market, where the retailer serves as a third-party mechanism for connecting buyers and sellers without actually participating as either.

Merchandising may also provide value to retailers in the consignment sector. In this sector, retailers never officially purchase their inventory. Even though the items are often housed within a company’s retail location, the business functions as the authorized reseller, often for a fee, of another person’s or entity’s merchandise or property. Generally, they are never the true owner of the item because the person or entity that placed the item on consignment may return and claim the item if they so choose.

Gross merchandise value is the total value of merchandise sold over a given period of time through a customer-to-customer exchange site. It is a measure of the growth of the business.

All around the world, but most notably in the United States, the reality of merchandising is getting an update. The roles and rules of merchandising are experiencing an evolution. Chief merchants, formerly concerned mainly with the selection and presentation of products, now have broader accountability and a heavier hand in customer experience, as well as the development of design and talent related to display and marketing design.

Because consumer savvy is broadening, and technology is playing such a massive role in merchandising, companies need to stay ahead of consumers’ expectations. Innovation and experimentation have a central role in retailers' merchandising strategies.

In the United States, the routine retail cycle starts at the beginning of January. During this time, merchandising includes the promotion of Valentine's Day and St. Patrick's Day products and related items. Shortly following this, Presidents' Day is represented through special sales and discounts.

The next major holiday in the United States is Easter. During this time, not only is the holiday promoted but so is springtime and the associated warmer weather. Most promoted products at that time of year include clothing items appropriate for warmer weather, in addition to tools and other items suited for outdoor activities, such as gardening and picnics. These items are typically made available mid-winter and heavily marketed and promoted to move such items from shelves to make room for the next batch of products.

The cycle continues through the rest of the year in the same manner, accounting for Mother's Day, Memorial Day, graduation season, Father's Day, the Fourth of July, Labor Day, Halloween, Thanksgiving, and Christmas.

Retail is the largest private-sector employer in the United States, responsible for one out of every four jobs, or 52 million American workers.

Merchandising typically varies within retail chains but will vary greatly depending upon the region of the country (and within states themselves).

Merchandising Company vs. Service Company

As the name suggests, a merchandising company engages in the sale of tangible goods to consumers. These businesses incur costs, such as labor and materials, to present and ultimately sell products.

Service companies do not sell tangible goods to produce income; rather, they provide services to customers or clients who value their innovation and expertise. Examples of service companies include consultants, accountants,  financial planners , and insurance providers.

Merchandisers employ a number of different strategies to attract buyers to make purchases, including window and in-store displays, strategic grouping of products, well-stocked shelves that have clear signage, the highlighting of certain promotional products, samples and other freebies, in-store demonstrations, and other in-store advertisements. Cleanliness and neatness are also important, as they are synonymous with professionalism. A business's online store should also use merchandising strategies to appeal to online shoppers.

Merchandising is critical for a retailer, as it can directly impact sales and customer retention. Whether a store has a physical presence, and/or an online presence, how the store presents itself and its products is crucial. In a physical store, cleanliness, organization, ease of accessibility, and the strategic use of discounts and offers can be the difference between a customer that casually browses once and one that becomes a repeat purchaser.

Effective merchandising can help a retailer grow its brand, compete with others in its same category, and stay competitive even when the economy is struggling.

What Are the Types of Merchandising Companies?

Merchandising, broadly speaking, refers to any entity that engages in selling a product. Under this definition, there are two types of merchandising companies, namely retail and wholesale. Retailers sell their products directly to consumers, while wholesalers buy from manufacturers and sell to retailers.

Essentially, merchandising is the promotion and sale of products. It often is used to mean retail sales itself in that its goal is to influence the buying decisions of consumers. However, it should not be confused with the sale itself. It is the process leading up to a sale. It includes the determination of quantities, setting prices for goods and services, creating display designs, developing marketing strategies, and establishing discounts or coupons.

What Is the Difference Between a Merchandising and a Service Company?

A merchandising company, both wholesale and retail, sells tangible goods to its consumer. These companies incur costs, such as labor and materials, to present and ultimately sell products. Service companies do not sell tangible goods to produce income. Instead, they provide their expertise as a service to their clients. Examples of service companies include consultants, accountants, and financial planners.

What Are the Four Main Categories of Retail Merchandise?

There are essentially four types of retail merchandise, and most retailers specialize in one of the four classes. However, especially savvy retailers merchandise their stores with products from all four categories. Shopping products are the main class of retail merchandise, comprising products consumers want, are willing to research and comparison shop for, and are generally in demand for either a consumer or business audience.

Convenience products that consumers can't live without, such as food, health, and hygiene products and basic household goods comprise the second category. The third category constitutes impulse purchases , such as candy, magazines, or drinks; these products are usually near the checkout aisle in supermarkets or so-called big-box retailers. Finally, there are specialty products, or unique, personalized, or otherwise more individualized products that are also available.

National Retail Federation. " Retail's Impact ."

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2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations

Most businesses can be classified into one or more of these three categories: manufacturing , merchandising , or service . Stated in broad terms, manufacturing firms typically produce a product that is then sold to a merchandising entity (a retailer) For example, Proctor and Gamble produces a variety of shampoos that it sells to retailers, such as Walmart , Target , or Walgreens . A service entity provides a service such as accounting or legal services or cable television and internet connections.

Some companies combine aspects of two or all three of these categories within a single business. If it chooses, the same company can both produce and market its products directly to consumers. For example, Nike produces products that it directly sells to consumers and products that it sells to retailers. An example of a company that fits all three categories is Apple, which produces phones, sells them directly to consumers, and also provides services, such as extended warranties.

Regardless of whether a business is a manufacturer of products, a retailer selling to the customer, a service provider, or some combination , all businesses set goals and have strategic plans that guide their operations. Strategic plans look very different from one company to another. For example, a retailer such as Walmart may have a strategic plan that focuses on increasing same store sales. Facebook’s strategic plan may focus on increasing subscribers and attracting new advertisers. An accounting firm may have long-term goals to open offices in neighboring cities in order to serve more clients. Although the goals differ, the process all companies use to achieve their goals is the same. First, they must develop a plan for how they will achieve the goal, and then management will gather, analyze, and use information regarding costs to make decisions, implement plans, and achieve goals.

Table 2.1 lists examples of these costs. Some of these are similar across different types of businesses; others are unique to a particular business.

Knowing the basic characteristics of each cost category is important to understanding how businesses measure, classify, and control costs.

Merchandising Organizations

A merchandising firm is one of the most common types of businesses. A merchandising firm is a business that purchases finished products and resells them to consumers. Consider your local grocery store or retail clothing store. Both of these are merchandising firms. Often, merchandising firms are referred to as resellers or retailers since they are in the business of reselling a product to the consumer at a profit.

Think about purchasing toothpaste from your local drug store. The drug store purchases tens of thousands of tubes of toothpaste from a wholesale distributor or manufacturer in order to get a better per-tube cost. Then, they add their mark-up (or profit margin) to the toothpaste and offer it for sale to you. The drug store did not manufacture the toothpaste; instead, they are reselling a toothpaste that they purchased. Virtually all of your daily purchases are made from merchandising firms such as Walmart , Target , Macy’s , Walgreens , and AutoZone .

Merchandising firms account for their costs in a different way from other types of business organizations. To understand merchandising costs, Figure 2.2 shows a simplified income statement for a merchandising firm:

This simplified income statement demonstrates how merchandising firms account for their sales cycle or process. Sales revenue is the income generated from the sale of finished goods to consumers rather than from the manufacture of goods or provision of services. Since a merchandising firm has to purchase goods for resale, they account for this cost as cost of goods sold —what it cost them to acquire the goods that are then sold to the customer. The difference between what the drug store paid for the toothpaste and the revenue generated by selling the toothpaste to consumers is their gross profit . However, in order to generate sales revenue, merchandising firms incur expenses related to the process of operating their business and selling the merchandise. These costs are called operating expenses , and the business must deduct them from the gross profit to determine the operating profit . (Note that while the terms “operating profit” and “operating income” are often used interchangeably, in real-world interactions you should confirm exactly what the user means in using those terms.) Operating expenses incurred by a merchandising firm include insurance, marketing, administrative salaries, and rent.

Concepts In Practice

Balancing revenue and expenses.

Plum Crazy is a small boutique selling the latest in fashion trends. They purchase clothing and fashion accessories from several distributors and manufacturers for resale. In 2017, they reported these revenue and expenses:

Before examining the income statement, let’s look at Cost of Goods Sold in more detail. Merchandising companies have to account for inventory, a topic covered in Inventory . As you recall, merchandising companies carry inventory from one period to another. When they prepare their income statement, a crucial step is identifying the actual cost of goods that were sold for the period. For Plum Crazy, their Cost of Goods Sold was calculated as shown in Figure 2.4 .

Once the calculation of the Cost of Goods Sold has been completed, Plum Crazy can now construct their income statement, which would appear as shown in Figure 2.5 .

Since merchandising firms must pass the cost of goods on to the consumer to earn a profit, they are extremely cost sensitive. Large merchandising businesses like Walmart, Target, and Best Buy manage costs by buying in bulk and negotiating with manufacturers and suppliers to drive the per-unit cost.

Continuing Application

Introduction to the gearhead outfitters story.

Gearhead Outfitters , founded by Ted Herget in 1997 in Jonesboro, AR, is a retail chain which sells outdoor gear for men, women, and children. The company’s inventory includes clothing, footwear for hiking and running, camping gear, backpacks, and accessories, by brands such as The North Face, Birkenstock, Wolverine, Yeti, Altra, Mizuno, and Patagonia. Ted fell in love with the outdoor lifestyle while working as a ski instructor in Colorado and wanted to bring that feeling back home to Arkansas. And so, Gearhead was born in a small downtown location in Jonesboro. The company has had great success over the years, expanding to numerous locations in Ted’s home state, as well as Louisiana, Oklahoma, and Missouri.

While Ted knew his industry when starting Gearhead, like many entrepreneurs he faced regulatory and financial issues which were new to him. Several of these issues were related to accounting and the wealth of decision-making information which accounting systems provide.

For example, measuring revenue and expenses, providing information about cash flow to potential lenders, analyzing whether profit and positive cash flow is sustainable to allow for expansion, and managing inventory levels. Accounting, or the preparation of financial statements (balance sheet, income statement, and statement of cash flows), provides the mechanism for business owners such as Ted to make fundamentally sound business decisions.

Link to Learning

Walmart is inarguably a retail giant, but how did the company become so successful? Read the article about how low costs have allowed Walmart to keep prices low while still making a large profit to learn more.

Manufacturing Organizations

A manufacturing organization is a business that uses parts, components, or raw materials to produce finished goods ( Figure 2.6 ). These finished goods are sold either directly to the consumer or to other manufacturing firms that use them as a component part to produce a finished product. For example, Diehard manufactures automobile batteries that are sold directly to consumers by retail outlets such as AutoZone, Costco , and Advance Auto . However, these batteries are also sold to automobile manufacturers such as Ford , Chevrolet , or Toyota to be installed in cars during the manufacturing process. Regardless of who the final consumer of the final product is, Diehard must control its costs so that the sale of batteries generates revenue sufficient to keep the organization profitable.

Manufacturing firms are more complex organizations than merchandising firms and therefore have a larger variety of costs to control. For example, a merchandising firm may purchase furniture to sell to consumers, whereas a manufacturing firm must acquire raw materials such as lumber, paint, hardware, glue, and varnish that they transform into furniture. The manufacturer incurs additional costs, such as direct labor, to convert the raw materials into furniture. Operating a physical plant where the production process takes place also generates costs. Some of these costs are tied directly to production, while others are general expenses necessary to operate the business. Because the manufacturing process can be highly complex, manufacturing firms constantly evaluate their production processes to determine where cost savings are possible.

Cost Control

Controlling costs is an integral function of all managers, but companies often hire personnel to specifically oversee cost control. As you’ve learned, controlling costs is vital in all industries, but at Hilton Hotels , they translate this into the position of Cost Controller. Here is an excerpt from one of Hilton’s recent job postings.

Position Title: Cost Controller

Job Description: “A Cost Controller will work with all Heads of Departments to effectively control all products that enter and exit the hotel.” 1

Job Requirements:

“As Cost Controller, you will work with all Heads of Departments to effectively control all products that enter and exit the hotel. Specifically, you will be responsible for performing the following tasks to the highest standards:

• Review the daily intake of products into the hotel and ensure accurate pricing and quantity of goods received
• Control the stores by ensuring accuracy of inventory and stock control and the pricing of goods received
• Alert relevant parties of slow-moving goods and goods nearing expiry dates to reduce waste and alter product purchasing to accommodate
• Manage cost reporting on a weekly basis
• Attend finance meetings, as required
• Maintain good communication and working relationships with all hotel areas
• Act in accordance with fire, health and safety regulations and follow the correct procedures when required” 2

As you can see, the individual in this position will interact with others across the organization to find ways to control costs for the benefit of the company. Some of the benefits of cost control include:

• Lowering overall company expenses, thereby increasing net income.
• Freeing up financial resources for investment in research & development of new or improved products, goods, or services
• Providing funding for employee development and training, benefits, and bonuses
• Allowing corporate earnings to be used to support humanitarian and charitable causes

Manufacturing organizations account for costs in a way that is similar to that of merchandising firms. However, as you will learn, there is a significant difference in the calculation of cost of goods sold. Figure 2.7 shows a simplification of the income statement for a manufacturing firm:

At first it appears that there is no difference between the income statements of the merchandising firm and the manufacturing firm. However, the difference is in how these two types of firms account for the cost of goods sold. Merchandising firms determine their cost of goods sold by accounting for both existing inventory and new purchases, as shown in the Plum Crazy example. It is typically easy for merchandising firms to calculate their costs because they know exactly what they paid for their merchandise.

Unlike merchandising firms, manufacturing firms must calculate their cost of goods sold based on how much they manufacture and how much it costs them to manufacture those goods. This requires manufacturing firms to prepare an additional statement before they can prepare their income statement. This additional statement is the Cost of Goods Manufactured statement. Once the cost of goods manufactured is calculated, the cost is then incorporated into the manufacturing firm’s income statement to calculate its cost of goods sold.

One thing manufacturing firms must consider in their cost of goods manufactured is that, at any given time, they have products at varying levels of production: some are finished and others are still process. The cost of goods manufactured statement measures the cost of the goods actually finished during the period, whether or not they were started during that period.

Before examining the typical manufacturing firm’s process to track cost of goods manufactured, you need basic definitions of three terms in the schedule of Costs of Goods Manufactured: direct materials, direct labor, and manufacturing overhead. Direct materials are the components used in the production process whose costs can be identified on a per item-produced basis. For example, if you are producing cars, the engine would be a direct material item. The direct material cost would be the cost of one engine. Direct labor represents production labor costs that can be identified on a per item-produced basis. Referring to the car production example, assume that the engines are placed in the car by individuals rather than by an automated process. The direct labor cost would be the amount of labor in hours multiplied by the hourly labor cost. Manufacturing overhead generally includes those costs incurred in the production process that are not economically feasible to measure as direct material or direct labor costs. Examples include the department manager’s salary, the production factory’s utilities, or glue used to attach rubber molding in the auto production process. Since there are so many possible costs that can be classified as manufacturing overhead, they tend to be grouped and then allocated in a predetermined manner to the production process.

Figure 2.8 is an example of the calculation of the Cost of Goods Manufactured for Koeller Manufacturing. It demonstrates the relationship between cost of goods manufactured and cost of goods in progress and includes the three main types of manufacturing costs.

As you can see, the manufacturing firm takes into account its work-in-process (WIP) inventory as well as the costs incurred during the current period to finish not only the units that were in the beginning WIP inventory, but also a portion of any production that was started but not finished during the month. Notice that the current manufacturing costs, or the additional costs incurred during the month, include direct materials, direct labor, and manufacturing overhead. Direct materials are calculated as

All of these costs are carefully tracked and classified because the cost of manufacturing is a vital component of the schedule of cost of goods sold. To continue with the example, Koeller Manufacturing calculated that the cost of goods manufactured was $95,000, which is carried through to the Schedule of Cost of Goods Sold ( Figure 2.9 ).

Now when Koeller Manufacturing prepares its income statement, the simplified statement will appear as shown in Figure 2.10 .

So, even though the income statements for the merchandising firm and the manufacturing firm appear very similar at first glance, there are many more costs to be captured by the manufacturing firm. Figure 2.11 compares and contrasts the methods merchandising and manufacturing firms use to calculate the cost of goods sold in their income statement.

Calculating Cost of Goods Sold in Manufacturing

Just Desserts is a bakery that produces and sells cakes and pies to grocery stores for resale. Although they are a small manufacturer, they incur many of the costs of a much larger organization. In 2017, they reported these revenue and expenses:

Their income statement is shown in Figure 2.12 .

You’ll learn more about the flow of manufacturing costs in Identify and Apply Basic Cost Behavior Patterns . For now, recognize that, unlike a merchandising firm, calculating cost of goods sold in manufacturing firms can be a complex task for management.

Service Organizations

A service organization is a business that earns revenue by providing intangible products , those that have no physical substance. The service industry is a vital sector of the U.S. economy, providing 65% of the U.S. private-sector gross domestic product and more than 79% of U.S. private-sector jobs. 3 If tangible products , physical goods that customers can handle and see, are provided by a service organization, they are considered ancillary sources of revenue. Large service organizations such as airlines, insurance companies, and hospitals incur a variety of costs in the provision of their services. Costs such as labor, supplies, equipment, advertising, and facility maintenance can quickly spiral out of control if management is not careful. Therefore, although their cost drivers are sometimes not as complex as those of other types of firms, cost identification and control are every bit as important in the service industry.

For example, consider the services that a law firm provides its clients. What clients pay for are services such as representation in legal proceedings, contract negotiations, and preparation of wills. Although the true value of these services is not contained in their physical form, they are of value to the client and the source of revenue to the firm. The managing partners in the firm must be as cost conscious as their counterparts in merchandising and manufacturing firms. Accounting for costs in service firms differs from merchandising and manufacturing firms in that they do not purchase or produce goods. For example, consider a medical practice. Although some services provided are tangible products, such as medications or medical devices, the primary benefits the physicians provide their patients are the intangible services that are comprised of his or her knowledge, experience, and expertise.

Service providers have some costs (or revenue) derived from tangible goods that must be taken into account when pricing their services, but their largest cost categories are more likely to be administrative and personnel costs rather than product costs.

For example, Whichard & Klein, LLP, is a full-service accounting firm with their primary offices in Baltimore, Maryland. With two senior partners and a small staff of accountants and payroll specialists, the majority of the costs they incur are related to personnel. The value of the accounting and payroll services they provide to their clients is intangible in comparison to goods sold by a merchandiser or produced by a manufacturer but has value and is the primary source of revenue for the firm. At the end of 2019, Whichard and Klein reported the following revenue and expenses:

Their Income Statement for the period is shown in Figure 2.13 .

The bulk of the expenses incurred by Whichard & Klein are in personnel and administrative/office costs, which are very common among businesses that have services as their primary source of revenue.

Revenue and Expenses for a Law Office

The revenue and expenses for a law firm illustrate how the income statement for a service firm differs from that of a merchandising or manufacturing firm.

Welch & Graham is a well-established law firm that provides legal services in the areas of criminal law, real estate transactions, and personal injury. The firm employs several attorneys, paralegals, and office support staff. In 2017, they reported the following revenue and expenses:

Their income statement is shown in Figure 2.14 .

As you can see, the majority of the costs incurred by the law firm are personnel related. They may also incur costs from equipment and materials such computer networks, phone and switchboard equipment, rent, insurance, and law library materials necessary to support the practice, but these costs represent a much smaller percentage of total cost than the administrative and personnel costs.

Think It Through

Expanding a business.

Margo is the owner of a small retail business that sells gifts and home decorating accessories. Her business is well established, and she is now considering taking over additional retail space to expand her business to include gourmet foods and gift baskets. Based on customer feedback, she is confident that there is a demand for these items, but she is unsure how large that demand really is. Expanding her business this way will require that she incur not only new costs but also increases in existing costs.

Margo has asked for your help in identifying the impact of her decision to expand in terms of her costs. When discussing these cost increases, be sure to specifically identify those costs that are directly tied to her products and that would be considered overhead expenses.

• 1 Hilton. “Cost Controller: Job Description.” Hosco. https://www.hosco.com/en/job/hilton-istanbul-bomonti-hotel-conference-center/cost-controller
• 2 Hilton. “Cost Controller: Job Description.” Hosco. https://www.hosco.com/en/job/hilton-istanbul-bomonti-hotel-conference-center/cost-controller
• 3 John Ward. “The Services Sector: How Best to Measure It?” International Trade Administration. Oct. 2010. https://2016.trade.gov/publications/ita-newsletter/1010/services-sector-how-best-to-measure-it.asp. “United States GDP from Private Services Producing Industries.” Trading Economics / U.S. Bureau of Economic Analysis. July 2018. https://tradingeconomics.com/united-states/gdp-from-services. “Employment in Services (% of Total Employment) (Modeled ILO Estimate).” International Labour Organization, ILOSTAT database. The World Bank. Sept. 2018. https://data.worldbank.org/indicator/SL.SRV.EMPL.ZS.

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An examination about merchandising: How merchandising should be defined as a theory and practice?

2021, Business And Management Studies: An International Journal

Discussions about the components, definition and conceptual frame of merchandising are still ongoing in the literature. On the other hand, these uncertainties prevent the scientific deepening of merchandising. So, studies that determine the conceptual frame of merchandising have become necessary to remove the obstacles. In this context, this study aims to make a new comprehensive definition of the merchandising concept after a merchandising literature review. As a result, this study defined the merchandising concept as "a theory and practice that makes the consumers' sensations align with components of all online and physical stores –provided that it interactively complies with the monolith marketing strategiesto fulfil their purchasing behaviour. Finally, the suggested definition was separated and explained to support the approach of this study. So, this study suggests a new definition of the merchandising concept to enhance both practise and theory.

Related Papers

https://www.ijrrjournal.com/IJRR_Vol.7_Issue.6_June2020/Abstract_IJRR0060.html

International Journal of Research & Review (IJRR)

In this millennium the organized fashion retailing is no longer selling, displaying the apparels or the customer service where Visual merchandising plays an important role. Visual merchandising is a presentation of merchandise to best-selling advantage and for maximum traffic exposure, plus projection of customer “ready-to-buy”. Visual merchandising creates the in-store environment that supports the retailer’s marketing and merchandising strategies which sets the mood, invites, attracts, welcomes and informs the shoppers. In this study an attempt has been made to identify the awareness among the consumers about the visual merchandising in particular to the fashion apparel retail stores. About 175 questionnaires were distributed randomly to the customers of different types of fashion apparel stores in malls situated in Chennai, Tamil Nadu, India. Out of which 149 were responded. The response rate works out to 85.14%. The concept of visual merchandising has been analyzed using 13 variables such as Color & lighting; Fragrance & music; Interior wallpaper &carpets; Thematic display: the story behind; Arrangement; Ease of access; Employee team; Variety & Volume; Arousal; Dominance; Perceived Store Luxury; Pleasure and Store choice in a five point scale. The alpha value for all the 13 variables works out to 0.8579 which indicates that the variables are good for the study. The factorial method of data reduction technique enabled to group the variables in to three components and the components were named as Ambience/Décor; Merchandise; and Perceived Store Luxury, Emotions and Choice. The alpha value for all the three factors were 0.7736; 0.8100 and 0.8250 which indicates that all the variables are acceptable in nature for further study. The first three preferences of Ambience/décor were Color & lighting; Fragrance & music; and Interior, wallpaper &carpets. In the case of merchandising the preference were Variety & volume of merchandise; ease of access to merchandise; and Employee team. In the case of Perceived Store Luxury, the preferences were Perceived Store Luxury; Emotions and Store Choice. In this study SEM model has been employed to indicate the strength of the relationships between the factors taken for the study. In all the study indicates Fragrance, Interior and arrangement of merchandise were expected to have top preference.

Rahul Jadhav

Madalena Pereira , J.M. Lucas

This research represents a contribution to a deeper understanding about the impact of visual merchandising on consumer buying behaviour in shopping centre fashion stores. The main objective of this paper is to study the influence of visual merchandising, especially the one related to the shop-windows, on consumer buying behaviour according to sex, and to store attributes most valued by consumers. To attain this objective, a questionnaire was sent out to Portuguese fashion consumers by e-mail. The data was then submitted to multivariate statistical analysis. The main results of this research demonstrate differences not only in the store attributes valued by consumers but also sex differences in consumer buying behaviour according to the merchandising techniques used. in store window displays. Keywords: Fashion Stores, Visual Merchandising, Shop window, Consumer Buying Behaviour

INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD

James Tetteh Ademtsu

In the dynamic and competitive landscape of textile retailing, creating an appealing and engaging in-store environment is paramount for attracting customers and influencing their purchasing decisions. Visual merchandising, the strategic presentation of products and the overall store environment to encourage sales (Anim & Cudjoe, 2020; Quartey & Abor, 2019), has emerged as a critical tool for retailers to differentiate themselves and drive consumer behaviour. This research aims to investigate the effect of visual merchandising on consumer behaviour within the context of textile retail stores in Ghana. Ghana's textile industry boasts a rich heritage and plays a significant role in the country's economy (Abaka-Quansah et al., 2020; Debrah & Adu-Amankwaah, 2018). However, with increasing competition from imported textiles and evolving consumer preferences, Ghanaian textile retailers face the challenge of creating compelling in-store experiences to attract and retain customers (Akrong & Agyedu-Baffour, 2020; Anning-Dorson, 2018). Understanding the impact of visual merchandising on consumer behaviour can provide valuable insights for retailers to optimise their strategies and enhance their market position. This paper begins by introducing the concept of visual merchandising and its importance in the retail industry. The research objectives and the study's theoretical framework, grounded in consumer psychology and retail atmospherics, are then presented. A comprehensive literature review explores recent research on visual merchandising and its influence on consumer behaviour, highlighting key elements such as store layout, product displays, signage, and ambiance. The methodology section details the mixed-methods approach employed, combining observational

AARF Publications Journals

Visual merchandising (VM) is a presentation of merchandise to best-selling advantage and for maximum traffic exposure, plus projection of customer "ready-to-buy". VM creates the in-store environment that supports the retailer's Marketing and merchandising strategies. In this study an attempt has been made to identify the awareness among the consumers about the visual merchandising. About 175 questionnaires were distributed randomly to the customers of different types of fashion apparel stores in malls situated in Chennai, Tamil Nadu, India. Out of which 149 were responded. The response rate works out to 85.14%. The concept of visual merchandising has been analyzed using 11 variables such as Billing counter; Gender/age division; Landscape; Ease of Navigation; Trial room; Appropriate use of props; Ensemble; Focal point; Signage; Store atmosphere and Window display. The factor method of data reduction technique grouped the 11 variables into two components such as Emphasis and Layout. The alpha value for all the variables works out to 0.8626 which indicates that the variables taken up for the study were good. The SEM model of two factors, emphasis and layout considered as duality factor were more important for Visual Merchandising. The study indicates that the in-store environment should concentrate on the store layout and emphasis on Interior displays.

NEETU SINGH

This study aims to find out how and to what extent outlets incorporate visual merchandising that appeals to the customers and lead to a potential purchase. Retail business in India is booming and there is a fierce competition between the retailers. Fashion retailers cannot always depend on the Price, Place, Promotion, and Product cannot always win. An empirical study is aimed to find out the impact of visual merchandising on customer preference analysis in malls in Delhi. The study was based on a primary data and which was done through a questionnaire. The survey data was collected from 100 respondents in retail brands and 60 respondents in Luxury brands between the ages of 18 – 60 years in DLF Emporio, DLF Promenade mall, Ambience Mall Delhi. The dimension of visual merchandising i.e. window display, instore mannequin, floor merchandising promotional signage, proper lighting and good music in stores are an important visual merchandising element. These elements are studied and results reveal the importance of visual merchandising in fashion stores and its comparison in visual merchandising between retail and luxury brands.

International Journal for Research in Applied Science & Engineering Technology (IJRASET)

IJRASET Publication

The present dreary and vicious rivalry and the likeness of product have yield retail industry to bridle visual promoting as a mode to expand the charm of items. Visual product demonstrates the introduction of a store and selling components in such a way will draw in the consideration and hold the commitment of possible clients. This examination means to sum up the past examinations and address the unconventional development in visual promoting occurred throughout the long term to demonstrate the appropriate usage of viewable signs that are guided towards the clients to draw in them to their stores, bringing about acquisition of clothes and proposing aspect that can be concentrated further. A few parts has been involved by the retailer in making appealing store that prompts drive buyer purchasing conduct This study will go about as a guide to the scholarly information by recognizing some examination holes in the current writing and by giving headings to future exploration.

Euro Asia International Journals

As Tier-I cities are flooded with Brands across retail stores in India it's time for retailers to understand the nuances and developments in enhancing store image in retail stores and specifically in fashion segment that changes can be witnessed in the existing business patterns for attracting both new and existing customers providing a comfortable experience with brands. Keeping this aspect, the paper addresses specifically various aspects of visual displays of merchandise for appealing to right people by not wasting time either way. Further, retailers can go about transforming their conventional visual displays into smart visual merchandising strategies

Amanda Queiroz Campos , Grasiele Pilatti , Luiz Salomão Ribas Gomez

The points of sale are no longer a space where money is exchanged for a product or a service. The search for new sensations and engaging experiences is growing. In response to the consumer behavior indicated as a trend by the Trendwatching Latin America report entitled Retail Retold, in May 2014, this presents truck-shops as an alternative for retail. Truck-shops are moving trade models that use trucks or vans as point of sale. Since they consist in points of sale, they should follow visual merchandising projects as well. However, due the temporariness and mobility, there is a wider range of issues to be considered in the consumption experience in such spaces. Thus, we intended to approach how the premises of visual merchandising are applied to these trades without an established location. For that, we conducted: (1) a bibliographical research on visual merchandising and buying experience, (2) the Trendwatching’s trend description and interpretation, on top of (3) exploratory surveys on visual merchandising’s specificities applied to truck-shops. The study concluded that experimentation is magnified in truck-shops retail, since the locations’ choice extends the sensory stimuli – visual, auditory, olfactory and tactile -, in addition to the generation of different surprise attributes at each new chosen location, creating new brand’s memories. In contrast, as a negative aspect we point out inclement weather conditions can influence on the presence of consumers in open spaces.

The study aims to find out how and to what extent retail apparel outlets incorporate visual merchandising in retail stores in Ludhiana. The survey method was followed to conduct the study and data were collected through Interview schedule and convenient sampling. Ludhiana was selected as locale of the study. The major findings showed that almost all the stores exhibits creative and interesting displays that incorporate aesthetic principles with basic merchandising techniques to inform and educate potential buyers about the products. Moreover displays are frequently changed to promote new product launches, merchandise assortment, brand names and reflect festive or season themes such as Christmas, New Year, Spring or Summer. All the stores allocate specific budget for their displays. It was further found that almost all the stores employed different elements such as mannequins, lightning, scents, music, layouts, props, fixtures for enhancing their store ambience and attracting custome...

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Admission To FIT (Fashion Merchandise Management) Essay Example

Type of paper: Essay

Topic: Business , Marketing , Company , Industry , Love , Experience , Fashion , Products

Published: 01/18/2020

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I am an entrepreneur who can conceive new ideas and integrate them. My extrovert personality of mingling and socializing with people is another thing, which makes me convinced that I deserve the credit and consideration for admission. In addition to that, I am richly endowed with leadership qualities of working with people, motivating and encouraging them in all their situations. My inquisitive nature is another virtue, which I cannot overlook because I love asking questions. When talking to clients, my friends and even any other person I come across, I do not just keep quite but I keep the conversation moving. Just to sum it up me am a hardworking and always passionate in whatever I purpose to do whether it is easy or hard.

Since my childhood, I have always dreamt of being a Merchandiser in the fashion industry. My desire is to acquire experience, knowledge, and expertise in Fashion industry. I desire to be fully equipped in Fashion Merchandising Management at FIT to become a very competent and competitive Merchandiser. I view FIT as stepping stone, which can transform into a noble character and a better designer by giving what it takes to outdo my competitors. I am not planning to join FIT just for the sake of getting ‘A’s and all those good grades though I know I will get them but my real interest is the skill apart from good academic performance.

Over the past five years, have been in the field developing my career. I started working in Japan in production and product development departments for a year before shifting to marketing and advertising. I worked for a Company called Causeway Mall, merchandise that operates in Asia, Japan, and Korea offering local as well as international products ranging from clothing, shoes, jewellery among other fashion products.

When one walks even in the streets of Tokyo, it is evident that fashion industry has taken roots and is moving really moving up the ladder. I was inspired by the oldest companies like Onitsuka Tiger that are designing new styles of shoes. My work was to make adverts on TV stations, magazines, and internet. My last year in the company I was leading a group of designers in our department teaching them on how to make the best adverts with the experience I gained in the company. Even with that long time of experience in the field, I still desire to perfect my profession and acquire more skills to enhance creativity, efficiency, focus, and open-mindedness. I believe that FIT has a lot to offer other than what I already have because I am not yet at the peak. My record speaks for itself, a very organized and focused person.

I want to major in marketing and advertising because first it is my passion, a hobby and what I love doing most. Secondly, I have realized that that fashion industry is all about marketing yourself, your company and your products. Another thing there much relationship between fashion and music. Apart from being a designer, I am also an artist and so it becomes very easy for me to do my job. I believe FIT is the best place for me to come and take Fashion Merchandising Management to become a real expert.

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Kamala Harris & The Future of America: An Essay in Three Parts

By Caleb Maupin

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Retail Management and Merchandising

Alibaba group operated the leading online marketplaces in Chines, including Alibaba.com, B2B, and Taobao, which assisted small and medium-sized companies (SMEs), and Chines enterprises in trade both locally and find overseas markets (Wulf and Oberholzer-Gee, 2009).

Additionally, the group ran a web portal, an online payment service provider, and an online business advertising inventory platform. Most of the SMEs conducted their operations in fragmented markets whose expansion was restricted by the limited communication channels which would promote their products. One of the critical difficulties that these SMEs faced was the limited options to express their trustworthiness. At the onset, posting on Alibaba was free, although some firms which subscribed to the premium received forefront display opportunities for their stores. Likewise, the company helped them manage and build their websites.

Alibaba Group’s motivation to diversify into the retail consumer business with the launch of Taobao was the rapid growth displayed by eBay. eBay was an American company that had invested in the Chinese market and was fast growing. Thereupon, it could easily result in the demise of Alibaba unless a counter-measure was taken. Jack thus formulated a group to pursue a new venture which would eventually ensure the survival and possible growth of Alibaba (Wulf and Oberholzer-Gee, 2009).

EBay’s entry was aggressive, and in a short while, it had dominated the entire market, acquiring a share of about 85% in 2002 (Wulf and Oberholzer-Gee, 2009). The existing Chinese online auction mostly catered to tech-savvy enthusiasts and was soon bought by eBay. At that time, eBay had made public predictions of China’s advancement for the next decade.

Notably, it is evident that Alibaba Group faced a severe threat and risked collapse due to eBay’s overbearing presence in the Chinese market. The move to invest in other ventures was hence justified in a bid to protect its interests. EBay’s power sellers could grow drastically to take the space of the B2B platform. Moreover, its overall revenue collection was relatively small compared to eBay’s enormous capital, hence lower competitive capacity (Wulf and Oberholzer-Gee, 2009). The success of Taobao provided insights into advancing the other branches of Alibaba Group, which has contributed immensely to its present state today.

Taobao invested a lot of technical expertise with unique mechanizing strategies that automatically beat eBay. One such epochal technique was Taobao’s market design which was oriented with a strong sense of local culture that deeply understood the Chinese consumers. It naturally appealed to the target clients, especially its attitude of informality. The employees selected nicknames that equally reflected the cultural attachment of the platform to Chinese individuals (Wulf and Oberholzer-Gee, 2009). The customer base is unlike the Westerners, and they want busy websites with strong color content with numerous links embedded in between. Accordingly, it captured the Chinese shopper’s thought patterns providing a user interface that they could easily relate to.

Another essential factor that Taobao incorporated in its methodology is building and maintaining trust with its clients. It sought to engender sureness between the customers and various vendors selling through the platform. Unlike in the west, affect and cognition-based trust is highly intertwined in China, a scenario common even in business. Most Chinese associate businesses with socio-economic exchanges, such as socializing with each other’s families and sharing meals.

Whence, emotional elements had to be imbibed to appeal to this peculiar trait. Some of the strategies implemented include the sellers registering using their bank account information and national identity cards. Additionally, the company introduced Alipay to prevent issues arising from payment conflicts among the trading parties (Zhang and Wang, 2018). For instance, the seller would only initiate shipping after the buyer had paid, and only after the client has received the item is the bank instructed to release funds to the vendor. Besides, Taobao also invested in an instant messaging service to facilitate communication between the users and the company.

Furthermore, Taobao lowered its fees to the bare minimum, unlike eBay, which charged listing fees. During its inception, people in China were wary of scams due to their unfamiliarity with online marketplaces. Most of the mechanisms and the clients were reluctant to trade online without special incentives. Whereof, they wanted a free market unsure of the e-commerce development scope and pattern (Wulf and Oberholzer-Gee, 2009). The two-way network type also allowed for more traffic to the website as more buyers thronged the site while vendors offered diversified products to attract more clients. The free transaction technique worked to encourage early adopters, unlike eBay. Hence, it was able to build an extensive customer base among the Chinese people at the time.

Ma should not implement Zhao Cai Jin Bao because it failed to solve consumer market needs adequately. After displacing eBay, Ma has gained widespread attention and introduced several features and ventures within its platform to improve diversification. One such is Zhao Cai Jin Bao which lets vendors bid for keywords and ranked listings whose fee is collected after transactions are completed. The feature’s principal disadvantage is that most sellers are attracted to Taobao mainly because it is free. Any element of monetization is likely to discourage some from registering. Moreover, it might demoralize others due to uncertainty about its freeness if the clients fail to purchase the products (Wulf and Oberholzer-Gee, 2009).

Additionally, several other websites offer the same service with zero charges, yet the e-commerce market is highly competitive. They are likely to lose other customers in the process; accordingly, Zhao Cai Jin Bao’s monetization should not be pursued.

Reference List

Wulf, J. and Oberholzer-Gee, F., 2009. Alibaba’s Taobao (A) . Havard Business School, pp.1-15.

Zhang, Q., & Wang, Y. (2018). Struggling towards virtuous coevolution: institutional and strategic works of Alibaba in building the Taobao e-commerce ecosystem. Asian Business & Management , 17 (3), 208-242.

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The Graduation Part II: Graduate School Graduation Rates

This paper documents several facts about graduate program graduation rates using administrative data covering public and nonprofit graduate students in Texas. Despite conventional wisdom that most graduate students complete their programs, only 58 percent of who started their program in 2004 graduated within 6 years. Between the 2004 and 2013 entering cohorts, graduate student completion rates grew by 10 percentage points. Graduation rates vary widely by field of study--ranging from an average of 81 percent for law programs to 53 percent for education programs. We also find large differences in graduation rates across institutions. On average, 72 percent of students who entered programs in flagship public universities graduated in 6 years compared to only 57 percent of those who entered programs in non-research intensive (non-R1) institutions. Graduate students who do not complete may face negative consequences due to lower average earnings and substantial levels of student debt.

The conclusions of this research do not necessarily reflect the opinion or official position of the Texas Higher Education Coordinating Board, the Texas Workforce Commission, the State of Texas, or the National Bureau of Economic Research. This work was generously funded by Arnold Ventures.

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