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ONLINE VISUAL MERCHANDISING AFFECTS

CUSTOMER RESPONSE BEHAVIOUR- A

CONCEPTUAL MODEL

Farah. S. Choudhary

Assistant Professor, The Business School, University of Jammu, (India)

ABSTRACT

The purpose of this study is to explore the effect of online visual merchandising cues on consumers approach

and avoidance behavior and identify the relative importance of the various visual merchandising cues to

consumers. The study took a case study approach and used Stimulus-Organism-Response framework. Definition

of online visual merchandising cues and a comprehensive and systematic list of visual merchandising cues were

given as the stimuli. Emotional variables: pleasure and arousal. Approach-avoidance is the only variable in

response. Empirical Findings showed the importance of online visual merchandising cues in approach-

avoidance behavior towards any website. The purpose of the paper is to review the extensive literature on

Online Visual Merchandising and give a conceptual model that will show a relationship between customer

response behaviour, emotional state and online visual merchandising. It also gave implications for retailers of

how to use online visual merchandising to attract consumers.

Keywords: Online Visual Merchandising, Pleasure State, Arousal State, Approach-Avoidance

Behavior

I. INTRODUCTION

Internet users are increasing in the world as well as in India. According to Computer Industry Almanac Inc,

about 934 million were global Internet users in 2013 and they are projected to reach 1.35 billion in 2017

(Population Explosion, 2013 [1]). According to the survey, India's e-commerce market, which stood at $2.5

billion in 2009, reached $8.5 billion in 2012 and rose 88 per cent to touch $16 billion in 2013. The survey

estimates the country's e-commerce market to reach $56 billion by 2023, driven by rising online retail. Indias

Internet population had reached 185.6 million in 2012 (Population Explosion, 2012 [1]) and out of which

140.6 million are considered active users who go online at least once a month (Burns, 2012 [2]). In addition,

remarkable changes were made in the relative distribution of the various types of Internet access in the Indian

households with high-speed Internet or broadband Internet access increased from 9.1% in 2011 to 19.9% in

2013 while dial-up Internet connections decreased by 12.7% during the same period (A Nation Online:

Entering the Broadband Age, 2014 [3]). These statistics show a marked change in Internet connections from

dial-up services to high-speed Internet connections in Indian households. This change has led to internet users

with high speed connections engaging in more types of online activities in the areas of entertainment, banking,

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purchasing products, or gathering information than those with dial-up connections (A Nation Online: Entering

the Broadband Age, 2014 [3]).

As the population of Internet shoppers grows, the effects of visual merchandising in websites have gained

attention from researchers. Previous studies showed that site designs and merchandising attract customers and

influence their satisfaction with Internet shopping (Harris, 1998 [8]; Szymanski & Hise, 2000 [9]). More

attractive and pleasurable site stimuli may influence consumers purchase decisions (Menon & Kahn, 2002

[10]). When a website creates pleasure for consumers, there is a positive effect on approach behaviors (Menon

& Kahn, 2002 [10]). Website designs make consumers return to the websites (Rice, 1997 [11]). In addition, ease

of site navigation (Rice, 1997 [11]; Szymanski & Hise, 2000 [9]) and entertaining experiences (Rice, 1997 [11])

make people enjoy and come back to the websites later. Extensive and higher quality product information also

affects consumers satisfaction in Internet shopping (Szymanski & Hise, 2000 [9]).

However while, the inability to try on apparel products before purchase in an in-home method is a major

concern for consumers (Kim & Lennon, 2000 [21]; Kwon, Paek, & Arzeni, 1991 [22]; Park, Lennon, & Stoel,

2005 [23]). In this context, Kim and Lennon (2000 [21]) have found that the amount of product and service

information in a television shopping program segment reduced perceived risk and increased purchase intention.

Fabric and color information and product details can also reduce perceived risk in the catalog shopping context

(Kwon et al., 1991 [22]). In an online shopping context, Then and Delong (1999 [24]) have suggested that more

information regarding visual aspects of apparel products such as a variety of images and of different product

views can generate higher purchase intention for consumers and in turn, increase sales for e-business. Thus,

viewing apparel products in a variety of combinations has a potential to help consumers assess how they might

look wearing those items (Allen, 1999 [25]). Mix and match suggestions in apparel sites may also increase

consumers purchase intentions that in turn increase apparel sales on the Internet (Allen, 2000 [26]; Then &

Delong, 1999 [24]).

Thus, from the above, it can be deduced that online visual merchandising is a key element of differentiation in

apparel and lifestyle industry. This subject is a critical area in retailing in international scenario but is still an

upcoming field in India.

II. HYPOTHESES

H1: There is no significant difference in the customers evaluation of online visual merchandising elements.

H2: Online visual merchandising affects consumer response behavior.

H3: Relationship between Online visual merchandising and customer response behavior is mediated by

emotional states.

III. OBJECTIVES OF THE STUDY

To understand the multi dimensional framework of online visual merchandising (OVM).

To evaluate the relative importance of OVM dimensions for the customers visiting sites.

To investigate the relationship between online visual merchandising elements and customer response

behavior.

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IV. LITERATURE REVIEW

Online Visual Merchandising

It is evident that in the brick & mortar retail store, visual merchandising means floor layout, interior design,

signage, in-store promotion, and product mix that facilitate purchasing (Harris, 1998 [8]). However while

applying this proven notion to the online environment it offers a completely new standpoint for designing

websites to be more profitable. In this context, Harris (1998 [8]) suggested some ideas that give direction for

applying these proven concepts in the retail store to website designs. Instead of a floor plan and signage, online

graphics, photos, and other design elements are used to attract customers to websites and get them to the

products. Merchandise categories available on the homepage (e.g., the order of the list) may lead customers in

the right direction on the retail websites. In terms of display and music, a large colorful photo image of the

product and price presented right next to the image of the product attract customers attention as well as the

music on the opening page help create an exciting mood for the customers (Harris, 1998 [8]).

Szymanski and Hise (2000 [9]) conducted a study to analyze the determinants of customer satisfaction in

Internet shopping and the results suggest that satisfaction with Internet shopping was influenced by perceptions

of site design and merchandising (including product assortment and product information). Besides extensive and

high quality product information affect consumers satisfaction in internet shopping. It have also been found that

easy to navigate sites play an important role in consumers satisfaction.

For apparel related websites, the significance of the layout and design of the websites has been emphasized by

Then and Delong (1999 [24]) and Allen (2000 [26]). According to Then and Delong, (1999 [24]), visual designs

on online apparel sites can be considered analogous to retail store layout. Thus, the main goal for website design

is similar to that for store design as both websites as well as stores want consumers to come in, enjoy the

environment and purchase the products.

Perceived risk related to the inability to try on apparel products before purchase is a major concern for

consumers while purchasing apparel in-home (Kim & Lennon, 2000 [21]; Kwon et al., 1991[22]; Park et al.,

2005 [23]). Park et al. (2005 [23]) have found that there is a negative relationship between perceived risk and

apparel purchase intention in Internet apparel shopping. This means that if perceived risks are reduced in online

apparel shopping the consumers purchase intentions are significantly increased. Further analyzing the OVM it

has been by Kim and Lennon (2000 [21]) found the amount of product and service information was negatively

related to perceived risk and positively related to purchase intentions in a television shopping context.

Therefore, to reduce perceived risk and enhance purchase intentions in Internet shopping, apparel websites

should offer rich and more intensive product information using a variety of sources of product presentation.

Then and Delong (1999 [24]) have indicated that if e-retailers offer more information through the visual display

of apparel products using a variety of images, then consumers will purchase more apparel products through the

Internet.

Visual aspects of product presentation such as images of the online product in its closest representation of end

use, displayed in conjunction with similar items, and from various angles such as front, back, and side view can

generate higher purchase intentions for consumers and in turn, increase higher selling for e-business (Allen,

2000 [26]; Then & Delong, 1999 [24]).

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V. ELEMENTS OF ONLINE VISUAL MERCHANDISING

Over the last decade, studies of visual merchandising variables have not only been applied to brick-and-mortal

store but also online shopping environments. Unlike brick-and-motor stores which can appeal to all five senses

with social and structural elements, online retailing relies almost entirely on visual appeal via the screen, which

makes visual merchandising more important for online retailing (Eroglu, Machleit, & Davis, 2001 [28]).

Although online stores do have some attributes which differ from those of typical stores, visual merchandising

in-store and online has the same goal: to bring consumers into the store and have them make a purchase (Ha et

al., 2007 [29]). Therefore, there are many common parts about visual merchandising in online and brick-and-

mortal store as physical store layout (product departments and merchandise directories) corresponds to layout

and categorization in an online store website (Ha et al., 2007 [29]); window display, promotion display and

signage in physical stores have the same function as merchandising promotion cues online. In addition all the

techniques of product presentation in an online store function as fixtures and mannequins, lights and product

grouping methods in brick-and-moral stores. Background colors and images on stores websites can create a

stores image as the color themes and all the graphics do in physical stores. This fact is further stated by Eroglu

et al. (2001 [28]) that atmospheric cues need to be systematically listed in online retail environment just as they

were in traditional brick-and-mortar retail environment in past research.

In this context, Manganari et al, (2011 [30]) introduced the Online Store Environment Framework (OSEF) and

divided it into four components:

1. Virtual layout and design: grid layout, free-form layout, racetrack layout;

2. Virtual atmospherics: background color, color scheme, percentage of white space, background music, fonts,

scent appeal, touch appeal;

3. Virtual theatrics: animation techniques, images, vividness, interactivity.

4. Virtual social presence: web counter, comments from other visitors, crowding.

Ha et al. (2007 [28]) did content analysis on a large amount of apparel websites and proposed three categories

for visual merchandise elements for apparel websites:

1. Online path finding assistance: sitemap, search engine, merchandise categorization;

2. Environment: atmospheric features, sale/promotion signage, color;

3. Manner of product presentation: types of product view, product view presentation methods, detailed views,

swatch, color presentation, product display method, mix and match.

Also, as per Hristo and Ivo (2014 [31]) OVM elements includes two groups of elements: (1) atmospheric

features, and (2) website registration. Sub-elements as components of atmospheric features: background colour,

audio and intro features, and text colour.

5.1 Website registration

The research devoted to online stores registration covers mainly the consumers privacy problems. The process

and consequences of collecting personal data is in focus of several studies (Zhou, L. et al., 2007[32], Tsai et al.,

2011 [33]). A research report of Privacy & American Business states that 64% of the respondents refrain from

buying goods online because of personal data requirements and 67% of the respondents avoid registering at

online stores (Tsai et al., 2011 [33]). A Jupiter Research Report has proven that a considerable proportion of

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online shoppers (82%) feel inclined to exchange personal data for an option of winning money ($100) while

another 63% are willing to allow the tracking of their online behavior in exchange for $5 price reductions

(Tedeschi, 2002 [34]).

5.2 Atmospheric

The importance of the stores atmospheric has been discussed numerous times. There is an empirical evidence

that in-store atmospheric influences shopping behavior in traditional (offline) stores by changing shoppers

emotions, purchase intentions, bought quantity, time/money spent in stores, etc. (Donovan and Rossiter, 1982

[18]; Bitner, 1992 [16]; Sherman et al., 1997 [35]). At the beginning of the era of online purchases some

researchers noticed that in spite of the fact that internet does not possess physical environment (such as

buildings, desks, shelves, windows, etc.) the online environment (or interface) in fact plays the role of an

atmospheric environment (Shih, 1998 [36]). The very first step in examining online stores atmospherics was

done by Eroglu et al. (2001 [28]). On the basis of knowledge about the atmospheric environment in traditional

stores the researchers developed a model of atmospheric cues impact on shoppers cognitions, emotions, and

behavior. The authors analyze two major categories of environmental factors in the context of online stores

"high task relevant environment" (HTRE) and "low task relevant environment" (LTRE). The "low task relevant

environment" includes merchandising elements of an online store that are "relatively inconsequential to

completing the shopping task" such as: font types, music, decorations (unrelated to the merchandise),

background colours, security options, etc. On the other hand, the "high task relevant environment" include

verbal information connected with the merchandise such as: verbal information concerning the goods offered in

the online store (merchandise narrative, terms of delivery, return and price policies, pictorial demonstration of

merchandise, etc.), navigation options (searching toolbar, site map, etc.).This model have been tested and

proven as reliable in a later research project (Eroglu et al., 2003 [37]).

Other researchers have also confirmed that pleasant online environment (atmospheric) positively affects

surfers cognitions, and consumer reactions (Dailey, 2004 [38]). A relatively detailed description of atmospheric

features in apparel online stores has been presented by Ha et a. (2007 [29]). The authors call it environment and

according to their suggestions it includes atmospheric features, sale/promotion signage, and colour. Lately some

researchers have laid the emphasis on congruence between online atmospherics and consumer preferences

(Hunter and Mukerji, 2011 [39]).

5.3 Website navigation

One of the early research projects concerning the website navigation as OVM elements illustrates its importance

from the point of view of "tracking and measuring the effectiveness of different merchandise strategies in an

online store" (Gomory et al, 1999 [40]).

Koivumaki (2001 [41]) has pointed out that online stores characteristics as ease of navigation, shopping

comfort, presentation of products, selection option, and interactivity have a positive influence on customer

satisfaction. Further Park and Stoel (2002 [23]) and Jang and Burns (2004 [42]) have concluded that female

college students have their favorite apparel online stores and the favorability depends on three major factors:

product information, navigation, and customer service. Relevance of navigation as an important factor that

stimulating online purchasing of apparel assortment has also been suggested by Siddiqui et al. (2003 [43]).

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5.4 Web graphics

The web graphics of an online store is an important tool for attracting and retaining customers. Online stores

layout influences the ease and the speed of information processing by consumers (Nilsen, 2001 [44]). Some

researchers prove that the aesthetics of a website impact the purchase intentions (Potts, K., 2007 [45]). Thus,

website graphics add value in two ways by offering pleasant environment and by making easier customers

orientation.

5.5 Product Demonstration

A vast majority of Internet users believe that they cannot buy clothes before trying them on, this is one of the

biggest problems in online shopping (Reda, 2002 [46]). In particular, a three dimensional image of the product

can create positive attitudes and increase purchase intentions from the online store (Park et al., 2005 [47];

Halepete and Park, 2006 [48]). Therefore, the importance of online merchandising techniques for product

demonstration can not be underestimated.

In some studies, online atmospheric variables have been grouped as high task-relevant cues and low-task

relevant cues and mainly focused on verbal content (Eroglu et al., 2001[28]; Eroglu et al., 2003 [37]). High task

relevant cues are those that can help consumers to make purchase decisions such as price or pictures of

merchandise, while low task relevant cues include information or graphs not related to shopping goals such as

background and fonts (Eroglu et al., 2001 [28]).

5.6 Web Advertising

Richards and Curran (2002 [49]) attempted to update the definition of advertising. After a series of interchanges

with advertising experts, they developed the following definition (p.74): Advertising is a paid, mediated form

of communication from an identifiable source, designed to persuade the receiver to take some action now or in

the future. By extension, it would seem quite logical to define Internet advertising as any form of

communication that meets the definition of advertising and can be found on the Internet. Consequently, as

Barbara Kaye and Norman Medoff, authors of Just a Click Away: Advertising on the Internet, explain, the

internet is an electronic medium used to communicate as well as to sell products and services. The World Wide

Web is the fastest-growing new medium of communication ever. The web medium and its technologies offer

new and distinct ways of communication to audiences.

Thereby suggesting the relevance of VM in online retailing also. Hence the hypothesis is proposed as:

H1: There is no significant difference in the customers evaluation of online visual merchandising

elements.

CUSTOMER RESPONSE BEHAVIOUR and AFFECTIVE STATE

S-O-R PARADIGM

According to Mehrabian and Russell (1974 [50]), much of the research in environmental psychology has

focused on the effects of physical stimuli (e.g., things of the everyday physical environment) on human

emotions (e.g., pleasure, arousal, and dominance, or PAD) and the effects of physical stimuli on a variety of

behaviors (e.g., satisfaction, purchase intention, and approach-avoidance behavior). In terms of physical stimuli,

most research has relied on the sensory variables such as color, sound, temperature, and texture. Consumer

emotions are conceptualized as three dimensions: pleasure, arousal, and dominance. Pleasure and arousal can be

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easily measured by selfreport or by observation of positive facial expressions. Emotional pleasure refers to the

degree to which a consumer feels happy, pleased, satisfied, contented, or hopeful while arousal is consumer

emotion that refers to the extent to which a consumer feels stimulated, excited, or aroused. Dominance can be

measured through verbal reports or by observations of body posture or facial expression. Although the S-O-R

paradigm suggests three dimensions to measure consumer emotions, previous research has found that

dominance had only little or no effect on consumer behaviors (Donovan & Rossiter, 1982 [18]; Donovan et al.,

1994 [19]) and therefore was not used in recent environmental research (Eroglu et al., 2003[37]; Menon &

Kahn; 2002[10]; Sherman, Mathur, & Smith, 1997 [35]). In addition, because participants will be controlled by

instructions in an experimental study, it is expected that dominance experienced by participants will not differ

by various web cues. Thus, in the present study pleasure and arousal will be used to measure consumer emotions

felt by people while browsing the websites.

As mediators, these emotional states cause various consumer response behaviors (Mehrabian & Russell, 1974

[50]). Physical stimuli (e.g., store design) in the environment influence consumer emotions (e.g., pleasure and

arousal) that serve as mediating variables in determining a variety of consumer response behaviors such as

satisfaction, purchase intention, and approach behaviors in a retail setting. A high level of pleasure and arousal

elicited by environmental stimuli in retail stores and in websites enhance satisfaction (Eroglu et al., 2003[37];

Spies, Hesse, & Loesch, 1997), purchase intention (Babin 2000 [51]; Fiore et al., 2005 [52]; Spies et al, 1997

[20]), and approach behaviors such as desire to explore and desire to shop (Eroglu et al., 2003[37]; Menon &

Kahn, 2002 [10]).

Mehrabian and Russell (1974 [50]) proposed the theoretical framework with the outline of the important

variables that take place in most situations; it is called the Stimuli (S)Organism (O)Response (R) paradigm

(See Figure 2.1). This S-O-R paradigm has been examined and developed by researchers applying it to the retail

context (Baker et al., 1992 [15]; Bitner, 1992 [16]; Buckley, 1991[17]; Donovan & Rossiter, 1982 [18];

Donovan et al., 1994 [19]; Spies et al., 1997 [20]), who found that the paradigm worked well in retail situations.

According to Jacoby (2002 [53]), the Stimulus-Organism-Response (S-O-R) model is the second generation of

consumer behavior models which evolved from the simplistic Input-Output (I-O) model around the middle of

the 1960s in social psychology. Compared to the I-O model, the S-O-R model emphasizes consumers internal

states more than either input or output factors (Jacoby, 2002 [53]). In 1974, Mehrabian and Russell proposed the

S-O-R model as an approach to environmental psychology. Mehrabian and Russell (1974 [50]) considered the

sensory variables and information rate in the environment as the stimulus. They stated that an individuals

character will have an effect on the affective state, which then results in approach-avoidance response behavior

(Mehrabian and Russell, 1974 [50])

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Figure 1: Stimulus-Organism-Response Model (Mehrabian & Russell, 1974, p.8)

Donovan and Rossiter (1982 [18]) adopted this framework for a retailing context. Since then the S-O-R model

has been widely used to study the impact of store environments on consumer shopping behavior (Vieira, 2013

[54]). Recently, the S-O-R framework has also been applied to consumer online behavior research (Jeong, Fiore,

Niehm, & Lorenz, 2009 [55]; Vieira, 2013 [54]).

5.7 Application of the Stimulus-Organism-Response framework to OVM

Applying the S-O-R model to an Internet shopping context, a recent study (Eroglu et al., 2003 [37]) found that

the effects of consumer emotions as intervening variables between various web cues and consumer response

behaviors in an Internet retail setting are analogous to those in an in-store retail shopping context. Emotions

(pleasure and arousal) induced by atmospheric stimuli presented in the website had a significant effect on

consumer response behaviors such as satisfaction and approach behaviors (Eroglu et al., 2003 [37]).

5.8 Stimulus

Stimulus is defined as an influence that arouses the individual in the S-O-R framework (Eroglu, Machleit, &

Davis, 2001 [28]). Donovan and Rossiter (1982 [18]) argued that stimulus is any cue in the retail environment

(i.e. color, music, lighting or signage) that can evoke consumers emotional response. In addition, novel and

complex stimuli have a higher information load and lead to more emotional response from consumers than

normal and simple stimuli (Mehrabian and Russell, 1974 [50]).

In the contexts of online stores, Eroglu et al., (2001 [28]) define stimulus as the sum total of all the cues that

are visible and audible to online shopper. As stated in the introduction, this study only focuses on visual

merchandising cues in online stores. The proposed online visual merchandising cues in the earlier session were

applied in the S-O-R frame work as the stimulus part.

5.9 Organism

Organism is the second part of the S-O-R model. It consists of affective and cognitive intermediary states and

mediates the relationship between the stimuli and responses in the S-O-R framework. At first researchers only

focused on consumers emotional reactions in the organism state. Later, a broader framework including both

emotional and cognitive responses was advocated since there are reactions beyond emotional response.

Sherman, Mathur and Smith (1997 [35]) found that cognitive factors have large impacts on approach behavior

like store selection and planned purchases, though the impact was not as great as emotional factors. Moreover,

Eroglu et al. (2003 [37]) did an empirical test on their online atmospheric model in a designed fictitious online

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shopping website based on the S-O-R framework. Emotion and attitude were used in the study as the organism

states and the result showed that atmospheric cues could affect consumers approach and avoidance behavior

through both the affective and cognitive states (Eroglu et al., 2003 [37]). As a result, both emotional and

cognitive variables were investigated in this study.

5.10 The Emotional State

There were various dimensions in previous studies about consumer-based emotion, but the most commonly used

ones were proposed by environmental psychologists pleasure, arousal and dominance, which were known as

the PAD dimensions of emotional reactions to environmental stimuli (Babin & Attaway, 2000 [51]; Mehrabian

& Russell, 1974 [50]). Mehrabian & Russell, 1974 [50] suggested that pleasure and arousal can cover all the

appropriate emotional responses from consumers, so later on pleasure and arousal are most commonly used in

atmospheric research instead of using all three dimensions. However, Eroglu et al., (2001 [28]) argued that

dominance may be an interesting measurement for online shoppers in terms of a sites loading time or

navigation design, they also recommended researchers use a more complex set of emotions instead of the simple

PAD typology or to choose the important emotions from the entire set which could be related to various

research topics (Eroglu et al., 2001 [28]).

Eroglu et al., (2001 [28]) argued the importance of dominance in online store functional design, but this research

only focus on visual merchandising in online store, so pleasure and arousal were adopted as they are the most

widely used dimensions to measure consumers emotional state in visual merchandising. Pleasure means the

degree to which a person feels good, joyful, happy, or satisfied in a situation, whereas arousal measures the

degree to which a person feels stimulated, active, or alert (Menon & Kahn, 2002 [10]). According to findings

from psychologists, pleasure can lead to more approach behavior and stimulation-seeking in the next task

(Menon & Kahn, 2002 [10]). There are also interactive effects between pleasure and arousal. According to

Mehrabian and Russell (1974 [50]), high arousal would result in approach behavior in a pleasant environment

while it would also lead to avoidance behavior if the environment is unpleasant.

5.11 Response

Turley and Millimans (2000 [56]) review about other studies addressed that past research explored not only

many stimuli but also a wide variety of behavioral responses such as time spent in the store, total sales and

impulsive buying behavior in retail environments. However, in general, it is all about positive response and

negative response. According to scientific psychology, approach behavior is instigated or directed by a

positive/desirable event or possibility, whereas avoidance behavior is instigated or directed by a negative/

undesirable event or possibility (Elliot & McGregor, 1999 [57]; Elliot & Thrash, 2002 [58]). In environmental

psychology, approach behaviors are those positive responses to an environment while avoidance behaviors are

shortening the time spent in the environment (Turley & Milliman, 2000 [56]). In general, approach and

avoidance behavior can be one or any combinations of four behaviors. (Hoffman & Turley, 2002 [59]).They are:

1. The tendency to stay (approach) or leave (avoid);

2. The tendency to explore more and interact (approach) or ignore (avoid);

3. The tendency to communicate (approach) or stay alone (avoid);

4. The feel of contentment (approach) or frustration (avoid) (Hoffman & Turley, 2002).

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Hence, approach-avoidance behavior is an effective way that can describe consumers shopping behavior.

5.12 The influences of stimuli on organism and response

Literature have shown various relationship among visual merchandising cues, organism and response. Research

conducted by Kim and Lennon (2008 [60]) found significant positive effect of visual presentation on

consumers affective and cognitive attitudes when they are purchasing apparel online. Ha and Lennon (2010

[61]) showed visual merchandising cues especially low task relevant cues can directly increase consumers

approach behavior.

5.13 Product Demonstration

Product demonstration offers efficient ways to provide sensory or aesthetic information to help consumers make

purchase decision (Jeong, Fiore, Niehm & Lorenz, 2009 [55]). Since consumers cannot touch and try on

products when shopping online, product demonstration can be a critical factor that affects consumer shopping

outcomes (Kim, & Lennon, 2008 [60]). Efficient visual product demonstration may evoke positive emotion and

eventually increase positive shopping responses (Kim et al., 2010 [62]). In this research, product demonstration

includes product density, model appeal, image quality and interactivity of product demonstration.

Product density in online retail environment is density of pictures and texts on website and the space

arrangement of the page. In brick-and-mortar store environment, Eroglu and Machleit (2001 [28]) argued that an

overload of retail density can negatively influence consumers internal states and subsequent shopping behaviors

and outcomes. Similar to product density in brick-and-mortar stores, online retailing websites with good image

alignment and text density have better performance (Soiraya, Mingkhwan, & Haruechaiyasak, 2008 [63]).

Products presented by model cannot only help consumers to better see the product but also create a context for

imagination. Studies showed consumers enjoyed apparel presented on models more than apparel presented flat

and the models face also influences their affective states (J. Kim et al., 2010 [62]; Yoo & Kim, 2012 [64]).

When the model was presented in a lifestyle setting, consumers may also envision themselves in the same

environment (Jeong et al., 2009 [55]).

High image quality and interactivity of product presentation can help to give more details of products. A larger

picture can draw more attention from consumers and create more imagination than a smaller picture (Yoo &

Kim, 2012 [64]). At the same time a large picture and more images of different views of a product can increases

mental intangibility (Yoo & Kim, 2012 [64]). Large sized images with movement can induce greater purchase

intention through consumers and some image interactivity such as a mix and match function can increase

consumers approach towards the online store (Fiore & Jin, 2003 [52]; J. Park, Lennon, & Stoel, 2002 [47]).

Image enlargement and different views that provide more details of products can effectively provide aesthetic

information to consumers and have positive influence in pleasure and arousal (Jeong et al., 2009 [55]). In

addition, great online product coordination has a better chance to get positive consumer responses than

uncoordinated product displays (Yoo & Kim, 2012 [62]).

5.14 Atmospherics and Web Graphics

Good website graphics should be based on appropriate web content: text, pictures, layout and color (Rosen &

Purinton, 2004 [65]). Aesthetic forms of web design include organized and systematic layout of items, legible

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font type and font size, and a clear text/background color combination (Wang, Minor, & Wei, 2011 [66]). The

website with higher visual aesthetics would be perceived as having more credibility and provide more

satisfaction (Robins & Holmes, 2008 [67]; Wang et al., 2011 [66]). In this study, websites visual appeal and

layout of the website are discussed in web graphics.

Early studies showed different font types, word styles, and color combinations would affect the readability of

websites (Hill & Scharff, 1997 [68]). According to the study of Wu and Yuan (2003 [69]), the color and font of

text will affect reading performance. The hue and design of website background can influence consumers

perception of the products value when they make purchasing decisions (Mandel & Johnson, 1999 [70]).

Consumers value products presented on a blue or purple background more highly than those displayed on other

background colors (Biers & Richards, 2011 [71]). In addition, a concrete background will trigger higher mental

imagery of products than a white background (Yoo, 2010 [64]).

A study about store layout indicated that a tree structured online store layout can stimulate higher levels of

elaboration and get more positive response from consumers, because its easy to use and goal oriented (Griffith,

2005 [72]). It shows the importance to design the website for consumers to access the information which could

help their decision process (Griffith, 2005 [72]). In addition, website layouts perceived ease of use will affect

consumers pleasure and attitude which will influence their online response (Manganari, Siomkos, Rigopoulou,

& Vrechopoulos, 2011 [73]).

5.15 Web Advertising

Website advertisement such as banner ads and texts that offer promotional messages (e.g. free shipping,

discounts and coupons) can attract more consumers and enhance online retailers competitiveness (Park &

Lennon, 2009 [74]). A successful online retailer would not only have promotions emphasize the new and

popular product but also sales information, because for consumers who are online bargain hunters the visible

selection, discounts, and special promotions (e.g., incentives and free gifts) are very attractive (Lepkowska-

White, 2004 [75]; Park, Kim, Funches, & Foxx, 2012 [76]).

Positive affect from advertisement can encourage consumers to browse for more time and the inner states such

as pleasure and arousal are related to impulse purchases (Gardner & Rook, 1988 [77]). Consumers are more

likely to purchase products impulsively because of price or special promotions of the website while web

browsing (Park et al., 2012 [76]). In addition, consumers would have more positive perceptions of product

values with the price promotion advertisement while they do online apparel shopping (Park & Lennon, 2009

[74]).

Ha and Lennon (2010 [61]) showed visual merchandising cues especially low task relevant cues can directly

increase consumers approach behavior. In addition, Manganari, Siomkos, Rigopoulou, and Vrechopoulos (2009

[73]) provided a conceptual framework for studying the impact of online store atmosphere on consumer

behavior based on the Virtual Component Presentation Framework (VCPF) proposed by Vrechopoulos,

OKeefe, Doukidis and Siomkos (2004 [78]).

In addition there is much related research about specific online retail visual merchandising techniques or cues

effect on consumer response behaviors. Eroglu and Machleit (1990 [79]) argued that an overload of retail

density can negatively influence consumers internal states and subsequent shopping behaviors and outcomes.

98 | P a g e

Similar to product density in brick-and-mortar stores, Soiraya, Mingkhwan and Haruechaiyasak, (2008 [80])

found that online retailing websites with good image alignment and text density can have better performance.

Kim et al.,(2010 [62]) investigated consumers preference for models faces. When the model was presented in a

lifestyle setting, consumers may also envision themselves in the same environment (Jeong et al., 2009 [55]). As

online product presentation techniques became diverse, interactive presentation methods such as image

enlargement, presentation of different views, picture switch were examined in various research (Fiore & Jin,

2003 [52]; J. Park, Lennon, & Stoel, 2005 [23]; Jeong et al., 2009 [55]; Yoo & Kim, 2012 [64]). Research in

website designed has shown that online website layout, font type, word style and color background are all

important to consumers response behavior (Hill & Scharff, 1997 [68]; Mandel & Johnson, 1999 [70]; Wu &

Yuan, 2003 [69]; Griffith, 2005 [72]; Yoo, 2012 [64]; Biers & Richards, 2011 [71]).

Hence, Hypothesis H2 has been stated as:

H2: Online visual merchandising affects consumer response behavior.

Mediation effect of organism between stimulus and response.

According to Mehrabian and Russell (1974 [50]), consumer emotions as mediators affect various consumer

response behaviors (Mehrabian & Russell, 1974 [50]). High levels of pleasure and arousal induced by the

environmental stimuli enhance purchase intention (Babin & Babin, 2001[81]; Baker et al., 1992 [15]; Spies et

al, 1997 [20]) and approach behaviors such as desire to explore and desire to shop (Eroglu et al., 2003; Menon

& Kahn, 2002). Previous research examined the influence of store colors on consumers shopping behaviors

such as approach behavior and purchase intention (Babin et al., 2003[82]; Bellizi, Chrowley, & Hasty, 1983

[83]). Consumers evaluations and excitement induced by the color of store environments were positively

related to store patronage intentions and purchase intentions (Babin et al., 2003 [82]). Based on the S-O-R

paradigm, previous research investigated the effects of consumers emotions as mediators between atmospheric

stimuli and consumers shopping behaviors (Eroglu et al., 2003 [37]; Menon & Kahn, 2002 [10]; Sherman et al,

1997; Spies et al., 1997 [20]).

Applying the S-O-R paradigm to the Internet apparel shopping context, Eroglu et al. (2003 [37]) found

significant effects of emotions (pleasure and arousal) on consumer approach behaviors. Past research concluded

that consumers approach or avoidance to the environment could be mediated by their emotional responses

(Donovan & Rossiter, 1982 [18]; Holbrook & Gardner, 1993 [84]). Baker et al. (1992 [15]) showed the

mediation effect of pleasure and arousal between store environment and consumers willingness to purchase.

Pleasure and arousal tend to mediate the relationship between atmospheric stimuli and consumer purchasing

behaviors in retail stores (Sherman et al, 1997 [35]) and in online stores (Eroglu et al., 2003 [37]; Menon &

Kahn, 2002 [10]). Consumer emotions elicited by atmospheric stimuli positively influenced approach behaviors

(e.g., browsing more, engaging in unplanned purchasing, and seeking out more stimulating products) in the

Internet shopping context (Eroglu et al., 2003[37]; Fiore et al., 2005 [52]; Menon & Kahn, 2002 [10]). Sherman

et al.s (1997 [35]) investigation of stores environment shows the visual aspects of store and social environment

can have a positive impact on pleasure, which can encourage approach behaviors such as liking of the store and

purchasing more. In online retail environments, Ha and Lennon (2010 [61]) examined various online visual

merchandising cues impact on consumer pleasure and arousal under browsing or purchasing contexts. The

results showed pleasure and arousal which are caused by visual cues were positively related to consumers

99 | P a g e

approach behavior and they mediated merchandising cues effect on consumer response. Thus, Consumers

emotional state (a) pleasure, (b) arousal mediates the link between online visual merchandising cues and their

approach-avoidance behavior.

This suggests that Internet retailers should think about consumers emotions experienced while browsing the

websites that may shape consumers subsequent shopping behaviors. Therefore, it is predicted that consumer

emotions (pleasure and arousal) will mediate the relationship between peripheral cues presented in apparel

websites and consumer response behaviors such as purchase intention and approach behaviors. This argument

led to the development of the following hypothesis

H3: Relationship between Online visual merchandising and customer response behavior is mediated by

emotional states.

Conceptual Framework for Online Visual Merchandising and Customer Response Behavior

VI. CONCLUSION

With increasing popularity of online shopping the competition is getting escalated and thus it has become

imperative for e-retailers to understand the motivators which bring consumers to shop online (Zhou et al., 2007).

Moreover Indian markets are still untapped in terms of online shopping phenomena and this trend is still gaining

popularity among consumers. As the online buying trend is gaining popularity in India and many companies

aim to capitalize on it, it becomes significant to get insight about the why, how and what of online consumer

behavior. So it is important to understand the antecedents behind the online purchase that too in Indian context.

However, there are many consumers who avoid purchasing apparel in an Internet shopping mall yet. The major

reason is they cannot try an item on for size or fitting and they are not able to see the items well enough to

examine the fabric or garments details. Therefore, there is a strong need for improvement and development of

online visual merchandising techniques in order to satisfy a customer's needs for effective online visual

merchandising skills. Recently, with an introduction of new technologies for product visualization, many

apparel retail stores are executing various online visual merchandising techniques. The visualization features of

fashion products on the websites enable e-shoppers to select fabric, color, and swatch as well as see their choice

INDEPENDENT

VARIABLE

Atmospheric

Website navigation

Product

demonstration

Web graphics

Web advertising

MEDIATING

VARIABLE

Pleasure

Arousal

DEPENDENT

VARIABLE

Approach/

Avoidance

100 | P a g e

applies to the actual garment image instantly. Online visual merchandising practices allowed multiple

presentations of the same apparel product contributed to the increased sales in e-business (Khakimdjanova &

Park 2005 [85]). It means that the apparel retailers in the e-market have to pay attention to the visual

environment to enhance a retail store's performance as well as customer satisfaction and online store repeat

visits.

Online retailers have different challenges from traditional retailers. They can carry more assortments and have

wider access to customers in different geographic areas, but in turn this means that consumers also have more

choices and it is easier for them to switch from one website to another to find different merchandise that they

want (Ha, Kwon, & Lennon, 2007 [29]). It is crucial then to attract consumers attention and retain consumers.

Unlike traditional retail environments which can appeal to all five senses, visual communication through the

screen is crucial for online retailers who have limited control of other senses (Eroglu, Machleit, & Davis, 2001

[28]).

Although the effects of website visual merchandising have gained attention from previous researchers (Allen,

1999 [25]; Menon & Kahn, 2002 [10]; Szymanski & Hise, 2000 [9]; Then & Delong, 1999 [24]), it is surprising

that so little empirical research related to visual merchandising in apparel websites has been conducted. Previous

Internet apparel shopping studies have focused on demographic issues (Goldsmith & Goldsmith, 2002 [87];

Kim, Damhorst, & Lee, 2002 [60]), purchasers vs. browsers (Goldsmith & Goldsmith, 2002 [87]; Lee &

Johnson, 2002 [86]), and the effect of prior experiences with the Internet or Internet shopping on Internet

apparel shopping (Goldsmith & Goldsmith, 2002 [87]; Yoh & Damhorst, 2003 [88]).

As shopping online is getting more common in our daily life and visual appeal on the screen is one of few ways

to communicate information to consumers in online retailing, there is a need to discover which visual

merchandising variables have significant effects on consumers shopping behavior in online shopping

environments. However, there is lack of research about online visual merchandising cues relationship with

consumer behavior in a systematic manner. Because apparel cannot be physically experienced online, Internet

shopping is a riskier way to purchase apparel products than in-store shopping. Therefore, it is necessary to

understand whether or not online visual merchandising of websites have an impact on consumers emotions

(pleasure and arousal) that in turn influence consumer response behaviors.

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