THE EFFECTS OF VISUAL MERCHANDISING ON GENERATION Z CUSTOMERS’ STORE PATRONAGE: EVIDENCES FROM FAST-FASHION RETAILING IN HO CHI MINH CITY

Abstract

This study examines the effects of visual merchandising on Generation Z customers’ store patronage in the fast-fashion retail context of Ho Chi Minh City, Vietnam, drawing on the Stimulus–Organism–Response framework. Visual merchandising is operationalized through three components: store layout and design, product display, and color and lighting. In addition, the study investigates the roles of two psychological states, namely, perceived shopping value and perceived self-congruity in explaining store patronage. Data were collected from 374 Generation Z respondents in Ho Chi Minh City who had shopped at fast-fashion stores within the past six months, and were analyzed using partial least squares structural equation modeling. The findings indicate that product display and color and lighting have positive effects on perceived shopping value; color and lighting also positively influence perceived self-congruity, whereas store layout and design show no significant effects on these two psychological states. Moreover, both perceived shopping value and perceived self-congruity positively affect store patronage, with perceived shopping value exhibiting a stronger effect. This study provides empirical evidence on how key visual merchandising components shape Generation Z consumers’ psychological states and store patronage in Vietnam’s fast-fashion retail setting, and suggests that retailers should prioritize optimizing product display as well as color and lighting to enhance customer experience and strengthen store patronage.