THE IMPORTANCE OF VISUAL MERCHANDISING ELEMENTS IN FURNITURE AND HOME FURNISHINGS RETAIL STORES by CARLY CERNEKA (Under the Direction of Lilia Gomez-Lanier) ABSTRACT The purpose of this study is to identify which visual merchandising factors in the furniture and home furnishings brick and mortar stores are important to millennials. In the rapidly evolving retail environment, multichannel operations are becoming increasingly significant as retailers try to market to today’s most attractive consumer: millennials. As millennials implement the new online mediums into their shopping behaviors, traditional shopping patterns, motivation, and perception of retail design are changing. As a result, consumer perceived values are changing as well. Therefore, the current study attempts to contribute to academic literature by exploring the interaction between millennial motivation to shop in the brick and mortar store, despite the presence of online mediums, and brick and mortar store design in efforts to determine how to provide a valuable shopping experience. INDEX WORDS: Visual Merchandising, Retail Design, Consumer Motivation, Millennial, Theory of Valuation THE IMPORTANCE OF VISUAL MERCHANDSING ELEMENTS IN FURNITURE AND HOME FURNISHINGS RETAIL STORES by CARLY CERNEKA B.B.A., UNIVERSITY OF WEST GEORGIA, 2017 A Thesis Submitted to the Graduate Faculty of The University of Georgia in Partial Fulfillment of the Requirements for the Degree MASTER OF SCIENCE ATHENS, GEORGIA 2019 © 2019 Carly Cerneka All Rights Reserved THE IMPORTANCE OF VISUAL MERCHANDSING ELEMENTS IN FURNITURE AND HOME FURNISHINGS RETAIL STORES by CARLY CERNEKA Major Professor: Lilia Gomez Lanier Committee: Yoo-Kyoung Seock Monica Sklar Electronic Version Approved: Suzanne Barbour Dean of the Graduate School The University of Georgia August 2019 iv DEDICATION This thesis is wholeheartedly dedicated to my parents, for their love and endless support. To my father, who has been a source of encouragement to me throughout my life. His positive outlook has always pushed me to keep moving forward. To my mother, who encouraged me to pursue graduate school for my master’s degree. I would not be here without her. She gave me strength when giving up was near and encouraged me to continue when times were tough. I am forever grateful for her continuous love and assistance. You both have been my biggest cheerleaders. I am truly thankful for both of you. v TABLE OF CONTENTS Page LIST OF TABLES ....................................................................................................................... viii LIST OF FIGURES ....................................................................................................................... ix CHAPTER 1 INTRODUCTION .........................................................................................................1 Background of the Study .........................................................................................1 Purpose of Study ......................................................................................................4 Significance of Study ...............................................................................................4 Objectives of Study ..................................................................................................5 Research Questions ..................................................................................................5 Definitions ................................................................................................................6 2 LITERATURE REVIEW ..............................................................................................8 Visual Merchandising and Interior Environments ...................................................8 Visual Merchandising Elements .........................................................................9 Furniture and Home Furnishings Retail Stores ......................................................11 Theoretical Framework ..........................................................................................12 Consumer Motivation .......................................................................................12 Consumer Shopping Value ...............................................................................13 Theory of Valuation ..........................................................................................14 Conceptual Model .............................................................................................16 vi Research Gap .........................................................................................................18 3 METHODOLOGY ......................................................................................................20 Research Method ...................................................................................................20 Participants .............................................................................................................21 Data Collection ......................................................................................................21 Survey Design ........................................................................................................22 Data Analysis .........................................................................................................28 4 FINDINGS ...................................................................................................................30 Introduction ............................................................................................................30 Demographic Profile of Participants ......................................................................30 Research Question One Findings ...........................................................................32 Cleanliness ........................................................................................................35 Lighting .............................................................................................................37 Product Display .................................................................................................40 Floor Plan ..........................................................................................................41 Product Groupings .............................................................................................43 Scent ..................................................................................................................44 Music.................................................................................................................45 Signage ..............................................................................................................47 Color .................................................................................................................48 Additional Findings ..........................................................................................49 Research Question Two Findings ..........................................................................50 Category 1: The Ability to Touch, See and Feel Merchandise (Utilitarian) .....51 vii Category 2: Enjoyment and Fun (Hedonic) ......................................................54 Category 3: Convenience (Utilitarian) ..............................................................56 Category 4: Ideas and Trends (Hedonic) ..........................................................57 Category 5: Selection (Utilitarian) ....................................................................58 Category 6: Customer Service (Utilitarian) ......................................................59 Category 7: Specials and Pricing (Utilitarian) ..................................................60 5 DISCUSSION AND CONCLUSIONS .......................................................................61 Summary of Findings .............................................................................................61 Discussion of Findings ...........................................................................................64 Implications of this Study ......................................................................................66 Limitations and Future Research ...........................................................................67 REFERENCES ..............................................................................................................................70 APPENDICES A SURVEY QUESTIONS .............................................................................................78 B INFORMED CONSENT FORM .................................................................................85 C MTURK HUMAN INTELLIGENCE TASK ..............................................................88 viii LIST OF TABLES Page Table 3.1: Survey Questions ......................................................................................................... 24 Table 4.1: Research Question One: Visual Merchandising Element References ......................... 33 Table 4.2:Research Question One Findings: Categories, Sub-Categories and Themes. .............. 34 Table 4.3: Research Question Two: Motivation References ........................................................ 50 ix LIST OF FIGURES Page Figure 2:1: Conceptual framework of Theory of Valuation from Davis and Dyer, 2012. ........... 16 Figure 2:2: Thesis Conceptual Model (adapted from Davis and Dyer, 2012) .............................