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Impact of Store Layout Design on Customer Shopping Experience: A Study of

FMCG Retail Outlets in Hyderabad, India

Conference Paper · September 2016

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 Proceedings of Annual Australian Business and Social Science Research
Conference 26 - 27 September 2016, Crowne Plaza Hotel, Gold Coast,
Queensland, Australia
ISBN: 978-1-925488-17-3
Impact of Store Layout Design on Customer Shopping
Experience: A Study of FMCG Retail Outlets in Hyderabad,
India
V V Devi Prasad Kotni
The aim of the study is to find out the impact of store layout design on
customer shopping experience. If there is any impact found, what are the
store layout design characteristics that provide good shopping experience to
the customers? What are the store layout design characteristics that are not
expected by the customers? The study identifies various characteristics of
store layout design from review of related literature. This study is organised in
an Indian city of Hyderabad and only FMCG retail outlets are considered for
this study. The primary data was collected from 300 customers who shopped
in any FMCG retail outlets in the study area. Factor analysis was performed
on the data of customer perception towards store layout design characteristics
to find out most important factors and to eliminate some characteristics which
are not important for good shopping experience according to the respondents.
Finally a regression model is adopted to find out most important store layout
design characteristics (independent variables) that influence customer
shopping experience (dependant variable).

Conference Track: Marketing / Retailing

1. Introduction

Store layout design contributes to the uniqueness of a store. The exterior and interior of a
store convey several messages about the store to the consumers. Managing space is the
first and foremost concern of almost every retailer, when it comes to designing the store's
interior. There are two areas in which the entire space of the outlet can be divided into. One
is selling area and another is non-selling area. Selling area is the area where the
merchandise of the retail outlet can be showcased with the help of fixtures like racks, tables
and others. Non-selling area is the area which is left for customer movement inside the
store. A good store layout design must find a balance between these two areas.
Area/Space is always an expensive and scarce resource. Retailers always try to maximize
the return on sales per square foot. Planning a layout for the store's interior is the first step
in designing the store's interior.

A successful store should keep a consumer interested and finally convert the window
shopper into the actual customer. From the customers’ point of view, they would like the
shopping process to be easy and satisfying. They prefer a pleasant shopping environment
where the aisles are wide, the view of the merchandise is clear, the merchandise is easy to
find and that there are sufficient items such that customers won’t experience stock-outs.
The retailer should have effective merchandising and displays in order to increase the
satisfaction of customers.

Layout design specifies the relative location of departments in a retail store. Most of the
previous research on retail management is from a strategy point of view, including situation
analysis, targeting customers, choosing a store location, managing a retail business,
developing customer service, and planning for the future. However, the design of the store
layout and the detailed facility layout haven’t received much attention.

Assistant Professor, Department of Management Studies, Gayatri Vidya Parishad College for Degree and
PG Courses (A), Rushikonda, Visakhapatnam, India. Email: devi_kvv@yahoo.com
Based on an overall consideration of the principles and characteristics in designing a retail
area layout, this research is focuses on determining the store layout design characteristics
from customer point of view. The main difference between previous research and this
proposed research is the formulization of statistical models that can be specifically applied
in the retail sector.

2. Review of Related Literature

In the last twenty years, different aspects of retail management and customer behaviour
have been intensely studied. In general, these studies have been more qualitative in nature
than quantitative. The table 1 presents some of the important contributions that were made
in past years related to the research problem.

Table 1: Previous Studies authors and their contributions

S.No Author(s) Contribution
1 Stevens (1980) Retailers have claimed that they have influenced
customer’s buying behaviour by manipulating store
atmospheric via layout, colour, lighting and music.
2 Lewison (1994) The selling floor layout can strongly influence in-store
traffic patterns, shopping atmosphere, shopping
behaviour and operational efficiency.
3 Donovan, Rossiter, Store environment is viewed as fantasy environment
Marcoolyn and providing a range of entertainment: musical, visual and
Nesdale (1994) theatrical for today’s consumer.
4 Erdem (1999) Store image is an important factor affecting customer
behaviour.
5 Simonson (1999) Store layout design can play a key role not only in
satisfying buyers’ requirements but also in influencing
their wants and preferences.
6 Merrilees and Miller Store layout design is one of the most important
(2001) determinants for store loyalty.
7 Baker (2002) Store layout design is a critical determinant affecting the
creation of that store image.
8 Postrel (2003 ) Shopping malls are pursuing aesthetic to attract
consumer who seek an entertaining experience. Store
environment is viewed as fantasy environment
providing a range of entertainment.
9 Karolefski (2003) Consumer wants products, communications,
entertainment, and marketing efforts that pique their
senses, evoke emotion, and stimulate their thinking—
they expect and respond best to experiences and want
shopping to be fun.
10 Raymond R. Burke The retail shoppability as the ability of the retail
and Alex Leykin environment to translate consumer demand into
(2007) purchase with the various determinants for it as store
layout , navigation, product profilation and presentation,
defining the shopping attitude i.e intentions for store
entry and purchase but retailers (often mistakenly)
believe stocking more products means selling more
products.
Source: Review of Related Literature
The retailers must make sure your store is in a prime location and is easily accessible to
the end-users. Earlier the layout design referred to as floor plan where there were five
types of floor plans as presented in the table 2 (Source:
http://managementstudyguide.com/store- design-and-layout.htm).

Table 2: Types of Floor plans

S.No Type of floor plan Description
The straight floor plan makes optimum use of the walls,
and utilizes the space in the most judicious manner. The
Straight Floor
1 straight floor plan creates spaces within the retail store
Plan
for the customers to move and shop freely. It is one of
the commonly implemented store designs.
According to the diagonal floor plan, the shelves or racks
Diagonal Floor are kept diagonal to each other for the owner or the store
2 Plan manager to have a watch on the customers. Diagonal
floor plan works well in stores where customers have the
liberty
to walk in and pick up merchandise on their own.
The fixtures and walls are given a curved look to add to
Angular Floor
the style of the store. Angular floor plan gives a more
3 Plan
sophisticated look to the store. Such layouts are often
seen in high end stores.
Geometric Floor The racks and fixtures are given a geometric shape in
4 Plan such a floor plan. The geometric floor plan gives a trendy
and unique look to the store.
Mixed Floor The mixed floor plan takes into consideration angular,
5 Plan diagonal and straight layout to give rise to the most
functional store lay out.
Source: http://managementstudyguide.com/store-design-and-layout.htm

In conventional retailing, there are several common store layouts used, including grid,
freeform, racetrack and serpentine layouts as described in the table 3. However in real life,
the retail area would combine these types of layouts rather than being restricted to using
only one type for the entire retail setting.
 Table 3: Types of Store layout designs
S.No Type of Layout Description
The grid layout is a rectangular arrangement of displays
and long aisles that generally run parallel to one another.
Grid store It has been shown that the grid layout facilitates routing
1
layout and planned shopping behaviour, providing consumers
with flexibility and speed in identifying pre-selected
products which appear on their shopping list.
The freeform layout is a freeflowing and asymmetric
arrangement of displays and aisles, employing a variety
of different sizes, shapes, and styles of display. In this
Freeform store
2 pattern, the customer enjoys considerable freedom to
layout
move in any direction within the store. The freeform
layout has been shown to increase the time that
consumers are
willing to spend in the store
The selling floor is divided into individual areas along a
circle or rectangular main aisle in the middle of the store.
Each individual area or sub-area is built for a particular
Racetrack store
3 shopping theme. The racetrack store layout leads the
layout
customers along specific paths to visit as many store
sections or departments as possible because the main
aisle facilitates customers moving through the store.
There are some papers focusing on serpentine, hub and
spoke layouts, which are variants of the grid store layout.
Serpentine layouts and their corresponding aisle
Serpentine
4 representation. The advantage of the serpentine layout is
layout
that there is only one path for customers to follow that
traverses all the floor space. Profit can be maximized by
extending the shopping distance of the customer.
Source: Levy, M. and Weitz, B. A. (1998), Retail Management, 3rd edition, McGraw-Hill.

After reviewing the related literature, the following characteristics of store layout design are
identified as shown in the table 4 which are used as variables in the study. The customers
are expected to respond on a five point scale to provide their perception on store layout
design basing on their shopping experience.
 Table 4: Store Layout Design Characteristics
S.No. Store Layout Design Characteristics
1 Store Front Design
2 Security Check cabin
3 Aesthetic Look
4 Lighting and Music
5 Space of Stair Cases
6 Accessibility to Lift Facility
7 Space for customer shopping
8 Easy Movement of customer
9 Arrangement of fixtures
10 Arrangement of Point of Sale
11 Arrangement of product Categories Departments
12 Arrangement of Wash Rooms
13 Drinking Water facility
14 Space for movement of Trolley
15 Packing and Delivery of goods
16 Store Exit
Source: Review of Related Literature

3. Objectives of the Study

The aim of the study is to determine the impact of layout design of the store on customer
shopping experience in the store. The study identifies some characteristics of retail outlet
layout design from review of related literature and attempts to find out how those
characteristics are making the customers to shop in the outlet conveniently.

4. Research Methodology
The study is descriptive in nature and an empirical one, the variables used are quantitative
and the study is based on primary data. The primary data was collected from 300
customers, purposively selected, who shopped in different leading FMCG retail outlets in
Hyderabad, India like Big Bazaar, More, Spencer’s, Reliance Fresh, Heritage etc. The
customers with different age groups, income levels, occupations, qualifications, experience
and gender are considered for this study from the study area (profile of the study area is
presented in Appendix 1).

A structured questionnaire has been designed specifically to elicit the opinions of

respondents depending on objectives of the study. The questionnaire focuses on
demographic profile of the customers, shopping patterns of the customers and finally
measuring the customer perception on a five point likert scale towards certain aspects of
layout design of the outlet which were identified from the literature review. After assigning
appropriate coding to the questions as variables, the data was fed into statistical software
SPSS for data analysis.

The reliability test (cronbach alpha) was performed on the data collected for the study and
found to be =0.709 which indicates that the data collected for the study is most reliable.
The value was calculated for the questionnaire administrated in order to determine the
reliability of the data where the alpha value is greater than 0.70 is the recommended level:
(Bernardi,
1994). Statistical tool factor analysis was performed on the data of perceptions of
customers towards layout design of the outlets. In order to find out the appropriateness of
factor analysis for the aspects (variables) of store layout and design, Kaiser-Meyer-Olkin
(KMO) and Bartlett's Test of Sphericity is used. KMO measures the magnitude of observed
correlation coefficients to the magnitude of partial correlation coefficients. Bartlett's Test
measures the correlation of variables. A probability of more than .05 is desirable: (Akansha
Anchaliya et al., 2012).

5. Demographic Profile of the Respondents

Demographic analysis of the study enables the retailers to know that the profile of the
customers in terms of age, gender, income, education, occupation etc. This analysis
enables the marketers and retail managers to draw the STP strategies and Retail
Marketing Mix strategies for better business performance.

Table 5: Demographic Profile of Respondents

Variable Categories of variable Frequency %
Gender Male 346 58%
Female 254 42%
Age 13 - 19 years (teenagers) 24 4%
20 - 30 years (youngagers) 384 64%
31 - 40 years (early middleage) 94 16%
41 - 50 years (late middleage) 80 13%
above 50 years (oldage) 18 3%
Occupation Unemployed / Students 32 5%
Employed 429 72%
Business people 139 23%
Education Primary Education 9 2%
Secondary Education 27 5%
Higher Secondary / Diploma / ITI 108 18%
Graduation (UG) 240 40%
Post Graduation (PG) 189 32%
Higher than PG 27 5%
Income Less than Rs.15,000/- 152 25%
Between Rs.15,000/- and
170 28%
Rs.30,000/-
Between Rs.30,000/- and
139 23%
Rs.50,000/-
More than Rs.50,000/- 139 23%
Size of Two 144 24%
Family Three 162 27%
Four 238 40%
Five 47 8%
Six 9 2%
Source: field study

In this section an attempt has been made to analyse the demographic characteristics of
respondents as presented in table 5. Out of total 300 sample respondents, 58% are male
and 42% are female. The respondents are categorised into five groups basing on their age.
Out of total sample, 4% are teenagers (13 – 19 years), 64% are from young age (20 – 30
years), 16% are from early middle age (31 – 40 years), 13% belong to late middle age (41
– 50 years) and 3% are from old age (above 50 years). Based on occupation, the
respondents are categorised into three groups, unemployed/students (5%), employed
(72%) and business people (23%). Basing on the education, 2% respondents completed
primary education, 5% have secondary education, 18% completed higher secondary
education, 40% are graduated, 32% have post graduation qualification and 5% are higher
post graduates. Basing on the income levels, the respondents are categorised into four
groups. 25% are having monthly income less than Rs.15,000/-, 28% have income between
Rs.15,000/- and Rs.30,000/-, 23% have income between Rs.30,000/- and Rs.50,000/-,
another 23% respondents have income more than Rs.50,000/-. The family size of
respondents are also analysed, 24% have family size two, 27% have size three, 40% are
having family size four, 8% have five and 2% of respondents are having size six.

6. Shopping Behaviour of Customers

The shopping behaviour of customers refers to the activities and actions of the customers
before shopping, during shopping and after shopping the goods in the outlets. The
shopping behaviour in terms of activities and actions like frequency of shopping, most
preferred time of shopping, amount spent per month, distance from home to outlet, family
life cycle stage etc are studied. The study of shopping behaviour of customers also enables
the marketers and retail managers to draw the STP strategies and Retail Marketing Mix
strategies for better business performance.
 Table 6: Shopping Behaviour of Respondents
Variable Categories of variable Frequency %
Frequency Daily 32 5%
of Weekly 183 31%
shopping Biweekly 118 20%
Monthly 132 22%
Bimonthly 42 7%
as per requirement 93 16%
Most first week of month 251 42%
preferred 2nd week of month 138 23%
Time of last week of month 51 9%
shopping
as per requirement 160 27%
amount less than Rs.1000/- 155 26%
spent between Rs.1000/- to Rs.5000/- 243 41%
per month between Rs.5000/- to Rs.10000/- 151 25%
more than Rs.10000/- 51 9%
distance less than 1 k.m. 216 36%
from between 1 k.m. - 3 k.m. 204 34%
home between 3 k.m. - 5 k.m. 78 13%
to outlet
5 k.m. - 10 k.m. 54 9%
more than 10 k.m. 48 8%
Family Young Couple with no children 135 23%
Life Cycle Couple with children 229 38%
Stage Couple with working children 196 33%
Old Couple-working children with
33 6%
kids
Old Couple staying away from
7 1%
children
Source: field study

The shopping behaviour of the respondents is analysed as shown in the table 6. The
frequency of shopping observed as daily 5%, weekly 31%, biweekly 20%, monthly 22%,
bimonthly 7% and 16% of respondents are visiting the outlet as per requirement of goods.
Most preferred time for shopping is analysed as first week of the month 42%, second week
23%, last week 9% and 27% of the respondents preferred time of shopping is as per
requirement of goods. The amount spent per month for shopping by the customers is less
than Rs.1000/- for 26%, 41% of the customers are spending an amount between Rs.1000
and Rs.5000, 25% are spending an amount between Rs.5000/- to Rs.10000/- and 9% are
spending an amount more than Rs.10000/-. The distance between outlet and customer
household is analysed, 36% of the respondents are shopping in the retail outlets which are
in less than 1 k.m. radius, 34% are shopping in the outlets which are situated in the
distance is in between 1 k.m. and 3 k.m. from home, 13% are shopping in distance
between 3 k.m. and 5 k.m., 9% are shopping in distance ranging from 5 k.m. to 10 k.m. and
8% of the respondents are shopping in the outlets which are more than 10 k.m. away from
their households. The family life cycle stages of the respondents are categorised into six
groups
i.e. young-couple-without-children 23%, couple-with-children 38%, couple-with-working-
children 33%, old-couple-working-children with kids 6%, old-couple-staying-away-from-
children 1%.
7. Performing Factor Analysis on Store Layout Design Characteristics

In this section an attempt has been made to analyse the characteristics of store layout
design to be measured. The customers were asked to respond on a five point likert scale
(Strongly- Agree [5], Agree [4], Slightly-Agree [3], Disagree [2], Strongly-Disagree [1])
regarding sixteen variables which were designed on the basis of previous studies and
interviews. To determine the data reliability, Reliability test was performed on the data of
customer response towards store layout and design. The value of the Cronbach's Alpha is
found to be 0.889, which shows the data of Store Layout Design Characteristics is 88.9%
reliable which ensures to proceed for further analysis.

7.1 Reliability of Data: Kaiser Meyer Olkin (KMO) and Bartlett’s Test for Store Layout
Design Characteristics

Table 7: KMO and Bartlett's Test for Store Layout Design

Characteristics
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.794
Approx. Chi-Square 827.537
Bartlett's Test of Sphericity df 120
Sig. .000
Source: Factor Analysis Data Reduction (SPSS 21.0)

To determine the appropriateness of factor analysis on the identified characteristics of

layout design, Kaiser Meyer Olkin (KMO) and Bartlett’s Test was performed as shown in
table 7. The KMO measure is observed to be 0.861 which is higher than the threshold
value of .5 (Hair et al. 1998). So it can be interpreted that there is no error in 86.1% of the
sample and remaining 13.9% there may occur some sort of error. Bartlett's Test of
Spherincity (2
=6526516) is found to be significant (p < .001, df 190). Finally it can be concluded that the
data collected on store layout design characteristics is appropriate for factor analysis.

7.2 Factors – Store Layout Design Characteristics

Table 8 : Total Variance Explained in

Factors - Store Layout Design Characteristics
Extraction Sums of Squared Loadings
% of Cumulative
FACTORS Total
Variance %
EASY MOVEMENT 2.143 13.393 13.393
FIXTURES 1.737 10.859 24.252
ENTRY 1.682 10.511 34.763
FACILITIES 1.543 9.645 44.408
EXIT 1.518 9.486 53.893
Source: Factor Analysis Data Reduction (SPSS 21.0)

Factor analysis was performed to study the store layout design characteristics influencing
the shopping experience in the study area. Factor analysis was used to remove the
redundant variables from the survey data and to reduce the number of variables into a
definite number of dimensions. The application was done in SPSS 21.0. The factor analysis
was performed using principle component extraction method with varimax rotation. After
performing factor analysis, the sixteen characteristics were reduced to five factor
dimensions,
which explained 53.893% of cumulative variance which is indicating that the variance of
original values was captured by these five factors as shown in table 8. The five factors are
provisionally named Easy Movement, Fixtures, Entry, Facilities and Exit. The factor scores
of store layout design characteristics are presented in the table 9.

7.3 Factor Scores Matrix - Store Layout Design Characteristics

Table 9: Factors loadings - Store Layout Design Characteristics

EASY
ATTRIBUTES MOVEMENT
FIXTURES ENTRY FACILITIES EXIT
I found the space of staircase in
the outlet is good and .729
comfortable.
I feel Accessibility to Lift Facility is
.673
good.
The Space for customer shopping
inside the store and across the .563
racks is good
There is an easy internal
movement of customer which .517
makes chopping comfortable.
I found the Arrangement of
product Categories/Departments .757
in the store is good.
There is a good Arrangement of
fixtures which makes all the
.601
products on the outlet is
accessible.
The Arrangement of Point of Sale
.581
is found to be good.
The Arrangement of Security
.712
Check cabin is good.
The Store Front Design is good
.562
and motivating for purchase.
The space allocated for Drinking
.797
Water facility is good.
The space allocated for
Arrangement of Washroom facility .783
is comfortable.
There is enough space allocated
for comfortable Packing and .722
Delivery of goods.
The Store Exit is good. .642
There is enough Space allocated
.599
for movement of Trolley.
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Source: Factor Analysis Data Reduction (SPSS 21.0) with alignment
The factor scores matrix of Store Layout Design Characteristics shows the associated
variables in all the five factors and their relative factor scores as presented in table 9. The
factor scores in the factor scores matrix represent the priority of Store Layout Design
Characteristics as opined by the customer. The first factor formed is Easy Movement with
an Eigen value of 2.143, variance of 13.393% and four associated variables. The
associated variables are Space of staircases (factor score .729), Accessibility to the lift
facility (.673), Space for customer shopping (.563) and Easy movement of the customer
(.517). The second factor formed is Fixtures with an Eigen value of 1.737, variance of
10.859% and three associated variables. The associated variables are Arrangement of
product categories/departments (.757), Arrangement of fixtures (.601) and Arrangement of
point of sale (.581). The third factor formed is Entry with an Eigen value of 1.682, variance
of 10.511% and two associated variables. The associated variables are Security check
cabin (.712) and Store front design (.562). The fourth factor formed is Facilities with an
Eigen value of 1.543, variance of 9.645% and two associated variables. The associated
variables are Drinking water facilities (.797) and Arrangement of wash rooms (.783). The
fifth factor formed is Exit with an Eigen value of 1.518, variance of 9.486% and three
associated variables. The associated variables are Packing and Delivery of goods counter
(.722), Store Exit (.642) and Space for movement of trolley (.599). Two variables (store
layout design characteristics, namely aesthetic look and lighting/music are eliminated while
performing factor analysis with statistical package SPSS.

8. Finding Customer Shopping Experience Index

In this section an attempt has been made to identify overall customer perception towards
shopping experience in FMCG retail outlets with three variables. Factor analysis was
performed on the customer shopping experience which was recorded on a five point likert
scale (i.e. Highly Satisfied [5], Satisfied [4], Slightly Satisfied [3], Dissatisfied [2] and Highly
Dissatisfied [1]). To determine the data reliability, reliability test was performed on the data
of customer perception on shopping experience data. The value of the Cronbach's Alpha is
found to be 0.789, which shows the data of shopping experience is 78.9% reliable which
ensures to proceed for further analysis.

To determine the appropriateness of factor analysis for the customer shopping experience,
Kaiser Meyer Olkin (KMO) and Bartlett’s Test was performed. As shown in table 10, the
KMO measure is observed to be 0.540 which is higher than the threshold value of .5 (Hair
et al. 1998). So it can be interpreted that there is no error in 54% of the sample and
remaining 46% there may occur some sort of error. Bartlett's Test of Spherincity (2 =8.993)
is found to be significant (p < .001, df 3). Finally it can be concluded that the data of
customer perception on shopping experience is appropriate for factor analysis. After
performing factor analysis, as shown in table 11, three variables are formed into only one
factor, named after customer experience index is formed with an Eigen value of 1.578,
variance of 60.25% and three associated variables convenient design (.691), rate of
motivation (.602) and flackable look (.601).

Table 10 : KMO and Bartlett's Test for

Customer Shopping Experience
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.540
Approx. Chi-Square 8.993
Bartlett's Test of Sphericity Df 3
Sig. .000
Source: Factor Analysis Data Reduction (SPSS 21.0)
 Table 11 : Total Variance Explained for Customer Shopping
Experience
Extraction Sums of Squared Loadings
Factors Total Variance % of Variance Cumulative %
CUSTOMER
1.202 40.068 40.068
SHOPPING INDEX
Source: Factor Analysis Data Reduction (SPSS 21.0)

Table 12: Factors loadings - Customer Shopping

Experience
ATTRIBUTES Experience
The store is designed conveniently so that
.691
is attracts the customers for shopping.
The Rate of motivation for shopping
.602
provided to me is good.
The store has Flackable look and feel that
.601
provides good shopping experience.
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Source: Factor Analysis Data Reduction (SPSS 21.0)

8. Model Specification and Discussion

In this section an attempt has been made to analyse the associations among customer
perception towards shopping experience and store layout design characteristics. To know
the impact of store layout design on customer shopping experience, the factors formed
from store layout design characteristics (from table 8) and factor formed from customer
shopping experience (from table 11) are used for this analysis. Considering customer
shopping experience index as dependent variable and the formed five factors (from store
layout design characteristics) as independent variables, a multiple regression model is
proposed as follows.

Customer Satisfaction Index (ICS) = f (Easy Movement, Fixtures, Entry, Facilities, Exit) [1]

Table 13: Model Summary

Change Statistics
Adjusted Std. Error
R R
Model R R of the F Sig. F
Square Square df1 df2
Square Estimate Change Change
Change
1 .374 .140 .125 .9352602 .140 9.565 5 294 .000
Source: Regression Analysis (SPSS 21.0)
 Table 14: ANOVAa Table
Sum of Mean
Model df F Sig.
Squares Square
Regression 41.835 5 8.367 9.565 .000b
1 Residual 257.165 294 .875
Total 299.000 299
a. Dependent Variable: SATISFACTION
b. Predictors: (Constant), EXIT, FACILITIES, ENTRY, FIXUTRES,
EASY_MOVEMENT
Source: Regression Analysis (SPSS 21.0)

The proposed model is statistically significant at 0.000 level with an f value 9.565 and
degrees of freedom 5 as shown in the table 13, R is found to be .374 and R 2 is found to be .
140 and adjusted R2 found to be .125. Hence it can be concluded that all the independent
variables are able to explain only 12.5% in dependent variable as shown in table 13.

Customer Shopping Experience Index (ICS) = 1.109E-16 + 0.189 Easy Movement + 0.220
Fixtures + 0.118 Entry + 0.042 Facilities + 0.200 Exit) [2]

Table 15: Coefficients – Store Layout Design Characteristics

Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
Std.
B Beta
Error
(Constant) 1.109E-16 .054 .000 1.000
Easy Movement .189 .054 .189 3.501 .001**
Fixtures .220 .054 .220 4.067 .000*
1 Entry .118 .054 .118 2.183 .030
Facilities .042 .054 .042 .784 .434
Exit .200 .054 .200 3.694 .000*
* Significant
Source: Regression analysis (SPSS 21.0)

From table 15, it can be observed that customer shopping experience will be increased by
18.9%, if there is easy movement in the store layout design. The associated
variables/characteristics with the factor (Easy Movement) are spacious staircases,
accessibility to lift facility, space for customer shopping, easy internal movement of
customers.

Customer shopping experience will be increased by 22%, if there are good fixtures in the
store layout design. The associated variables/characteristics with the factor (Fixture) are
Arrangement of product categories/departments, good arrangement of fixtures, and
arrangement of point of sales.

Customer shopping experience will be increased by 20%, if there is comfortable exit in the
store layout design. The associated variables/characteristics with the factor (Exit) are
Space for packing and delivery of goods, store exit and movement of trolley.
Out of five factors of store layout design characteristics, only three factors are found to be
significant i.e. Fixtures, Exit and Easy Movement. Remaining two characteristics Entry and
Facilities are not found to be statistically significant. It can be concluded that if the level of
good store layout design is increasing, the level customer shopping experience is also
increasing. It can be observed from the regression analysis model that the customers are
more motivated by easy movement in the store, good fixtures and comfortable exit.

Limitations and Further Scope of the Study

The present study is limited to only one city i.e. Hyderabad but it can be extended to other
cities in India and other countries also. The research topic is confined to only store layout
design, but it can be combined with other related topics like visual merchandising. The
current research is concentrated only on impact of store layout design on shopping
experience, but impact on customer satisfaction, impact on sales, impact on customer
retention must also be found out.

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Appendix 1

Profile of the Study Area: Hyderabad

Hyderabad is the capital city of the southern Indian state of Telangana. Occupying 650
square kilometres (250 sq mi) on the banks of the Musi River, it is also the largest city in
the state. Historically, Hyderabad was known for its pearl and diamond trading centres.
Industrialisation brought major Indian Manufacturing, R&D, and Financial Institutions to the
city, such as the Bharat Heavy Electricals Limited, the Defence Research and Development
Organisation, the Centre for Cellular and Molecular Biology and the National Mineral
Development Corporation. The formation of an Information Technology (IT) Special
Economic Zone (SEZ) by the state agencies attracted global and Indian companies to set
up operations in the city. The emergence of Pharmaceutical and Biotechnology industries
during the 1990s earned it the titles of "India's pharmaceutical capital" and the "Genome
Valley of India". The Telugu film industry is based in Hyderabad. As of 2011, the
Hyderabad Urban Agglomeration has a population of 7,749,334, making it the sixth most
populous urban agglomeration in the country. There are 3,500,802 male and 3,309,168
female citizens—a sex ratio of 945 females per 1000 males, higher than the national
average of 926 per 1000. Among children aged 0–6 years, 373,794 are boys and 352,022
are girls—a ratio of 942 per 1000. Literacy stands at 82.96% (male 85.96%; female
79.79%), higher than the national
average of 74.04%.
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