Article
AI-Driven Dynamic Visual Merchandising and Its Micro-Level Impact on Impulse Buying Behaviour in Supermarkets
Artificial intelligence (AI) is fundamentally changing the world of physical retail, especially in how store visuals are created and used. Instead of just simple, static product displays, stores can now rely on visual merchandising that are not only more interactive and adaptive but also driven by data. Based on the SOR theoretical model, this investigation focuses on the role of AI-driven visual merchandising in supermarkets in influencing consumer impulse buying, with the degree of visual engagement acting as a mediating factor. Employing a quantitative research methodology, the study gathered and analysed through SEM customer survey data that was collected from shoppers who were exposed to various AI-powered visual merchandising elements such as upgraded display quality, custom shelf arrangements, live digital signage, and product recommendation visibility. The results show that AI-powered visual merchandising greatly enhances visual engagement, which then leads to impulse buying, with visual engagement being the complete mediator between AI and impulse buying. The most impactful element was the visibility of product recommendations. The paper underlines that visual engagement is the main psychological mechanism that connects technological factors with consumer behaviour and thus serves as a strong empirical support of the S–O–R framework in the case of AI technology in the retail context. On a practical level, supermarkets employing AI-powered displays that not only attract consumer attention but also smartly present product recommendations can increase the number of unplanned purchases.