Technology-Enabled Visual Merchandising and Impulse Buying Behaviour: Evidence from Indian Supermarkets

Abstract

The rapid integration of digital and interactive technologies in brick-and-mortar retail has completely changed visual merchandising from a static display function to a dynamic, experience-based strategy. This research examines the effects of technology-enabled visual merchandising on impulse purchase behaviour in supermarkets, specifically focusing on how visual engagement and emotional arousal act as mediating variables. Using the Stimulus Organism Response (S-O-R) theoretical framework, we conceptualised technology-enabled visual merchandising as the environmental stimulus, visual engagement and emotional arousal as organismic states, and impulse purchase behaviour as the behavioural response. We used quantitative cross-sectional research, collecting data from 400 supermarket consumers in five major cities in Tamil Nadu, India. We employed Structural Equation Modelling (SEM) using SPSS and AMOS to test the hypothesised relationships and mediation effects. The findings indicate that technology-enabled visual merchandising increases visual engagement, which then positively impacts emotional arousal. Emotional arousal is found to be a strong predictor of impulse purchase behaviour. However, technology-enabled visual merchandising does not have a direct effect on either emotional arousal or impulse purchase behaviour; thus, visual engagement and emotional arousal fully mediate the sequential effects between technology-enabled visual merchandising and impulse purchase behaviour.