The Influence of Visual Merchandising on the Formation of Customer Loyalty
Authors:   I.I. Mechnikov Odessa National University, Seleznova Olha , Rudinska Olena ,   I.I. Mechnikov Odessa National University, Kusyk Nataliia ,   I.I. Mechnikov Odessa National University
Published: November 2020

The aim of the article. In modern conditions, marketing exists on a border between the traditional and the digital. The visual merchandising affects not only stationary but also online stores. It must be adapted to volatile trading conditions and be adapted to consumer behavior and needs. The authors believe that the ultimate goal of modern marketing is not only in the purchase of goods or services, but in the achievement of customer loyalty as well. Because in the changing of conditions of the economies of countries, high load of information, oversaturation of commodity markets and accelerating the overall pace of society, there is a need to form loyalty to their own customers for the survival of enterprises. Convenience of purchase, the level of service quality, price, quality and compliance with existing trends in the goods are the main motivation to the purchase and a prerequisite to the formation of loyalty. The aim of the article is to substantiate the influence of visual merchandising on the formation of customer loyalty on the example of a stationary and online store. The results of the analyses. The article investigates the tools of visual merchandising of a stationary and online store in the context of its influence on the formation of customer loyalty. The influence of modern marketing trends on the concept of AIDA and its transformation into 5A is revealed. The step-by-step content of the buyer's path from the stage of knowledge to the stage of propaganda is detailed and described. The essence of visual merchandising and the composition of its main elements are given. It has been shown how visual merchandising influence customer loyalty at the stage of purchasing through visual elements such as lighting, colors, fonts, signs, shop windows, shelves and cabinets, position of goods at the point of sale, place of store, etc., which in combination form impressions of the buying process and consumer satisfaction. There are revealed the tasks and tools of visual merchandising with details and descriptions of most of them. It is justified the choice of the store for conducting a study of the impact of visual merchandising on customer loyalty. The difference between the tools of visual merchandising of a stationary and online store on the example of Zara clothing retail chain is analyzed. A brief description of Zara store is presented. The possible actions of the buyer at the stage of the purchase process and the composition of the elements of visual merchandising of the website are analyzed. The analysis of the buyer's path in a stationary store is given. It is concluded about the different advantages of both options of trade, i.e. the possibility of direct contact with goods and the possibility of remote purchase. Possible mistakes of visual merchandising in the process of loyalty formation are indicated. It is also recommended to use additional principles of visual merchandising to enhance the positive effect (the pyramid principle and the rule of three). The scientific novelty of the work is the allocation of visual merchandising as a separate tool in the process of forming customer loyalty, which is justified by the extension of the AIDA concept to 5A: to aware, to appeal, to ask, to act, to advocate. Conclusions and perspectives for further research. Visual merchandising affects customer loyalty quite indirectly, which is unnoticed by the customer. But since it provides comfort of the purchase process through visual elements such as colors, spatial compositions, shop windows, lighting, location, signs, billboards, markings, etc., its impact should be taken into account in the marketing activities of enterprises. Prospects for further development should be in more detailed studies of visual merchandising in terms of information technology used in modern marketing. Keywords: marketing 4.0, loyalty, visual merchandising, stationary store, online store.