on gaining more sales by focusing on stimuli that provides financial benefits to the
shopper. The atmospheric engagement effect on the other hand focuses on creating a
sense of enjoyment and attractiveness of the shopper. Marketers would focus on
finding the balance between both the categories in order to fulfill the main aim of the
company which is to increase revenue of the company through shopper’s purchases.
Several researches have indicated that a positive correlation exists between the
positive in-store promotions towards shoppers impulse purchase (Beatty and Ferell,
1998; Puccinenelli et al., 2009). Promotion by giving the shoppers financial benefits
through unexpected discounts or price reductions may be effective in influencing
shoppers to conduct an impulse purchase (Janakiraman et al., 2006). A price
reduction received by the shopper may be considered appealing since it does not
apply only to their financial benefits however to their psychological benefits as well
since most shoppers tend to develop positive feelings when they receive a discount
which they did not anticipate. However marketers must be vary not to offer an
unexpected price hike to shoppers since most shoppers would react negatively by
limiting their purchase or even moving to competitors offering better deals (Millman,
1986).
In-store promotion induced by in-store displays are also considered to be critical for
marketers. The most important factor to consider when developing in-store display is
the need to understand the shoppers and their behavior. Some researchers believe that
strategic displays of the product merchandises may help to increase sales especially
in an impulse purchase situation (Terrazas, 2006). Strategic display of product may
involve putting two items which are often bought together close to each other which
may influence an impulse purchase behavior. For example clothing retailers may
place neckties and shirts close to each other. A shopper entering the store to purchase
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