In-Store Promotions and Its Effect on Apparel Purchase

Abstract

Indian retail sector is poised for growth and in-store is going to be the place where customers will take decision to spend or not to spend their money. As for apparel purchase, multiple factors influence the final decision on buying. Through this study, an attempt is made to find out the effect of in-store promotions and its influence on purchase of apparel by customers. Hence, the objectives of the study are set: to find out the customer’s purchase intentions and actual purchase in the context of apparel buying; to find out the most effective in-store promotions that induces purchase of apparel. The study was conducted in two Reliance Trend outlets in Bangalore City, India. 750 customers were intercepted after their shopping with questionnaires. Analyses of data reveal that in-store promotions results in 87 percent of unplanned purchase in apparel buying. 80 per cent of the customers seek to visit the “Best buy†section within the store and instore display of large photographs induce trials of the same design to the tune of 72 per cent. When translated to money terms a customer spends Rs 400 to Rs 1200 on apparel, which was not in the planned list prepared before visiting the store. Hence, in-store promotions are effective means to induce on the spot buying decisions amongst customers especially in apparel purchase.