The Mediating Role of Emotional Arousal in the Relationship Between in-Store Displays and Impulsive Buying Behavior

Abstract

This study investigates how in store displays in Fast Moving Consumer Goods (FMCG) retail settings influence consumers’ impulsive buying behavior, with a specific focus on the mediating role of emotional arousal. Drawing on the Stimulus–Organism–Response framework, in store displays are conceptualized as environmental stimuli that shape internal affective states and, in turn, drive spontaneous purchase decisions. Primary data were collected from 400 FMCG consumers in organized retail outlets across four major urban centers of Rajasthan (Jaipur, Jodhpur, Kota, and Udaipur) using a structured, Likert scale questionnaire. Structural Equation Modeling (SEM) was employed to estimate direct, indirect, and total effects among the constructs. The results show that in store displays have a strong, positive, and significant effect on emotional arousal, and that emotional arousal, in turn, has a positive, statistically significant effect on impulsive buying behavior. In store displays also exert a substantial direct effect on impulsive buying, even after accounting for emotional arousal. Mediation analysis reveals that in-store displays have a significant indirect effect on impulsive buying through emotional arousal, along with a significant direct path, confirming partial mediation. This shows that in-store displays affect impulsive buying via two channels. One direct channel enhances the visibility and convenience of the purchase, the other indirect channel increases emotional arousal and hedonic excitement. This study contributes to the consumer behaviour theory by explaining the psychological mechanism through which visual merchandising drives impulse purchases and offers practical implications to FMCG retailers who would like to design their display strategies to harness emotional engagement to boost sales in an effective, but responsible manner