Influence of Shelf Space Management on Impulse Buying Behavior of FMCG’s Consumers: A Case Study of Superstores in Karachi

Abstract

Consumer behavior is a significant factor to affect organizational planning and policies. This behavior affects many factors like social, cultural, psychological and personal factors. During 2007 to 2012, the private consumption income increased by 130% and the retail and wholesale sector has been growing at 5.3% during this period. In the case of FMCG’s, they analyze these factors to increase their sales volume and to get a competitive advantage over their competitors. Growth of supermarkets and consumers buying patterns are influential factors of increasing sales volume of FMCG’S. Increasing urbanization, technological advancement and marketing tactics increase more contest among these firms. Most of the supermarket managers now understand the importance of shelf space allocation and its effectiveness on the purchase decision of the consumer. This study is to evaluate the effectiveness of shelf space allocation and other factors like discounted prices, quality of products and in-store facilities on consumer buying behavior. Primary and secondary sources are used for this study. Secondary data is collected from research articles, journals, magazines and newspapers. For the collection of primary data, the questionnaire is designed for consumers to collect the appropriate data for this research. The study revealed that most consumers buying decisions rely on the quality of the product, discounted prices and shelf space allocation. All these factors lead to an improved understanding of the visibility features related to the product and impulse buying decision. Consumer perspective better shelf space management makes the buying decision process easier and time-saving. Better display and convenient store location serve as more attractive factors for the consumer to shop in a relaxed environment.