The Impact of Online Visual Merchandising on Customer Purchasing Intention in Online Fashion Retail Industry of Sri Lanka Z Generation: Examining Moderating Impact of Customer Involvement

Abstract

This study aims to investigate the effect of online visual merchandising on the purchase intention of Generation Z customers for online retail fashion stores in Sri Lanka, and to examine the role of customer involvement in modifying the relationship between each online visual merchandising cue and purchase intention. A quantitative design was adopted using a deductive approach, grounded in the positivism paradigm, to meet the study's objectives. Under a survey strategy, relevant data was collected from 385 Generation Z residents of Sri Lanka currently residing in the Western Province and engaging with online retail fashion stores. A well-structured questionnaire was disseminated via the internet, and the collected data was analyzed. The analytical results indicated that online retail fashion stores in Sri Lanka maintain visually appealing and well-organized web environments. These stores also employ extensive web advertising and offer easy and flexible website navigation. It was further revealed that Generation Z consumers exhibit a higher level of intention and involvement in purchasing fashion items from online fashion retail stores. Each online visual merchandising cue was found to have a significant and positive effect on the purchase intention of Generation Z customers. Additionally, customer involvement was shown to significantly moderate the relationship between online visual merchandising and purchase intention. This study is empirically valuable as it represents a pioneering effort to address a gap in the existing literature on online visual merchandising, particularly within the context of Sri Lanka's online fashion industry.