Impulsive buying occurs when customers make purchasing decisions without planning in advance, usually due to emotional triggers. Retail stores employ various techniques to encourage impulse buying, such as strategically arranging products and creating environments that distract customers and obscure perceptions of time. IKEA specifically uses tactics like starting customers with small, inexpensive purchases to get them in a buying mindset, providing distractions for children, removing cues about time passing, and committing customers to purchases by having them make shopping lists. They aim to get customers focused on buying more rather than leaving.
2. When you hurry into the grocery store for milk, bread, vegetables and
some snacks. Do you ever find yourself forking over 500K rupiah at the
checkout for unplanned purchases? Do you stop by the mall for a new
pair of shoes, or new sunnies, or new clothes, only to end up blowing
your budget on something completely different?
If so, don’t beat yourself up. While your resolve and shopping skills
certainly might be called into question, the supermarket, the mall, and
even the home improvement store are situated to make you spend.
what is impulsive buying
Impulsive buying is the tendency of a
customer to buy goods and services
without planning in advance. When a
customer takes such buying decisions at
the spur of the moment, it is usually
triggered by emotions and feelings.
3. Did you know why they started out
with small things
4. AVAILABLE MONEY
GOOD DEALS
YOU SHOP TO FEEL BETTER ABOUT YOURSELF
YOU SHOP AS A WAY TO PROJECT AN IMAGE OF WEALTH OR
POWER - YOU OVERSHOP TO KEEP UP YOUR IMAGE
YOU OVERSHOP AS A WAY TO AVOID ANOTHER ADDICTION
YOU SHOP TO FEEL IN CONTROL
How to CONTROL YOU spending?
RECOGNIZE TRIGGERS TO IMPULSE SPENDING
THINK ABOUT FINANCIAL CONSEQUENCES FROM
IMPULSIVE BUYING THAT MIGHT AFFECTING YOUR
LIFE
AVOIDING TRIGGERS
What makes you spend?
7. In every retail store, encouraging customers
to buy on impulse is a tried-and-true way to
boost average purchase value.
from retailers perspective
RETAILers Tactic to
encourage impulse buying
Believe it or not, stores use professionals to
strategically map out their floor plan in
order to entice you to buy. All five senses,
your impatience, and even your grumbling
stomach can betray you when you’re trying
to shop. But by understanding the tactics
that stores use to get you to buy, you can
choose to not fall prey to them.
8. HOW IKEA TRICKS YOUR BRAIN
INTO BUYING MORE
Starting with the small stuff. IKEA puts the
“nice to have” items (candle holders, dish
towels) first on the path, so you add those to
your cart, effectively breaking the seal.
9. HOW IKEA TRICKS YOUR BRAIN
INTO BUYING MORE
A fun day shopping – the distraction of kids
The paradise where you can shamelessly leave your
kids, so you can shop in peace. And for good –
economic – reasons.
Less time in IKEA means less spending, but also less
time and attention to the bigger purchases. Exactly the
purchases IKEA wants you to make. Less nagging,
higher margins.
Have you lost track of time already?
Have you ever stopped to notice that there’s no
window in sight in IKEA? You can look, but you
won’t find a dash of sunlight. The fake clocks on
the walls aren’t of much help either when it comes
to knowing what time it is. It’s a smart trick
borrowed from casinos.
Take away every indication of time, and you lose all
sense of it. And suddenly you’ve spent more time
wondering around than you’ve planned. Slowly
filling up your basket in the meantime.
10. No commitment issues? One from Cialdini’s playboo
we meet a handy dispenser of pencils and empty shopping lists.
Very thoughtful of IKEA, because with so many products and
corresponding storage places, we can use a memory aid.
Cialdini’s reciprocity (you give something to me, so I want to give
you something back: my money), there’s a stronger principle at
play: commitment.
By clearly writing down what you want to buy, you’re committing
yourself to this purchase. With every word, and every article
you’re jotting down, you’re obligating yourself just a bit more to
really buy that closet. Just because it’s on your own list.
HOW IKEA TRICKS YOUR BRAIN
INTO BUYING MORE
Remove reasons not to buy – change the mindset
With your pencil and paper ready to go, you prepare yourself for
the big tour to the wealth of choices for a corner couch. Still,
your eye catches the first product category: ‘the nice to have
items’. Dishwashers, sponges, candle lights, you name it. ‘I
mean, while I’m here, might as well buy that cheap dishwasher. It
will come in handy.’
That small purchase just so happens to change your whole
mindset. Instead of ‘what shall I buy’, your brains have changed
gear to buying mode. In buying mode, the strongest thought is:
‘what more should I buy?’
HOW IKEA TRICKS YOUR
BRAIN INTO BUYING MORE
11. The true reason behind the cheap restaurant
One of the reasons being that you’re convinced that
they’re dirt cheap. Just look at the restaurant. It seems
they’re giving away the food for practically nothing. There’s
no way they can make any money on that, right?
Your conscious brain tries to find a rational explanation for
it. “If they’re only making pennies on a dollar, it can only be
profitable when they’re doing large quantities.” The proof
of the pudding is in the eating, right?
Whether it’s true or not, this pricing sets the stage for IKEA
as a whole. You’ve convinced yourself that IKEA sells their
products at almost the same price they’ve purchased it.
Hot dogs, typically Swedish
IKEA won’t let you leave feeling depressed. They’ve found
a smart remedy. Simply because they’re well aware that
it’s the last purchase that sticks around, there’s one last
offer you can’t refuse. It’s the cheapest hot dog or ice
cream you’ll ever find. Why not give yourself a treat after
this long shopping trip?
And that’s how you end up with a good deal. According to
the ‘peak-and rule’ that’s the thing that sticks. The peak
and the end.
Satisfied, you settle down in your — self assembled —
couch (‘The IKEA-effect’) and you look back to a fun day
shopping.
HOW IKEA TRICKS YOUR
BRAIN INTO BUYING MORE