Time in store & Impulse Buying
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This document discusses strategies for increasing sales and customer spending in a retail store. It notes that higher priced products are perceived as higher quality and customers tend to stick with familiar brands. It also discusses impulse buying near cash registers and using promotions, layouts, and product placement to influence customer decisions and purchases. The document outlines principles of persuasion like reciprocity and various psychological factors that impact shopping behaviors.
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Time in store & Impulse Buying
- 2. Fitting Room Fitting Room KIDS Men Accessories Women Accessories Cash Register Enterance
- 3. Potential customers of
- 4. • Age: 5 to 60 • Gender: Women & Men & Kids Who gives importance on quality
- 5. Decision Making Heuristics: Mental short cuts Higher priced products higher quality “Buy the same brand I bought last time” Observation: Paradox of Choices
- 6. Fitting Room Fitting Room KIDS Shirts Men Accessories Women Accessories Cash Register Enterance
- 7. Fitting Room Fitting Room KIDS Shirts Men Accessories Women Accessories Seasonal Products Cash Register Enterance
- 8. The Six Principles of Persuasion
- 9. Principle of Reciprocation Feel obligated to respond to positive behavior I can put your belongings to the fitting room Offering suggestions
- 10. Maslow’s Hierarchy of Needs Ego Needs!! • Clothing of salesperson & appearances • Atmosphere • Customer portfolio
- 11. Carrefour
- 12. Bread Section Promotions!!! Cash Register Enterance
- 13. IMPULSE BUYING
- 15. NO Chewing gum !! Bread Section Cash Register Enterance
- 16. Grocery Store Fast Moving Consumer Goods
- 17. Perceptual Process: ??? • Sight Sensation Meaning • Sound • Smells Sensory Interpretati Attention Response Receptors on • Tastes • Textures Stimulus Perception
- 18. For 20 minute observation: 8 items put it back & 5 items end up buying
- 19. To introduce brand new products to the customers they put those products near to the cash register!
- 21. Waiting Line - Keep People Occupied
- 22. Learning Operant Conditioning Negative Reinforcement: People do not lose the opportunity to take promotional items! To escape negative outcome (devoding of buying 5 pairs of socks with the price of 2 pairs of socks)
- 23. Recommendations For time in store: Observation: Some people have knowledge about the layout of the store i.e.Carrefour Recommendation: They need to change the layout more frequently Observation: Cash register in the middle of the store. Recommendation: They may put the cash register at the back of the store. Impulse Buying: Observation: Perfumes are visible but glasses and ties stated at the back of the cash register and people cannot recognize easily those products are there. Recommendation: They should put these product near to the perfumes, which is more visible to the customers.
Editor's Notes
- In Tommy Hilfiger store, which is located on the first floor of Kentpark, near the luxury brands section, there are many tactics to keep the customers in their stores for a longer period. When we look at the design factors of the store, which includes architecture, décor, and furnishing, they have used antique parquet on the floors. There are home-style carpets, which complete the cozy look of the store. Their shelves and hangers are made from old looking woods to give a warm country image. Those atmospheric factors complete the classical image and provide a warm place for customers to shop; therefore by increasing their comfort and pleasure, they also increase the time a customer spends in the store.
- 1)Walking deep into the store and putting destination items at the back are factors that increase the time spent in store. In Tommy, shirts, which are destination and signature items of the brand, are placed at the back of the store. 2) There are two circular shelves on both left and right. Those shelves make the customers go deeper into the store so that they can look more at the products. As the customers go deeper, they are tempted to spend more time in the store as they are more exposed to products and the atmosphere of the store. 3) The first 5-10 steps just as a customer enters in a store are named as Zone 1. This zone is a buffering area for customers to slow down their pace of steps so that they can go into the mood for shopping. In this zone, customers are trying to get used to the new environment and surroundings. Therefore greeting a customer right away when they enter the store is irritating because they are trying to get used to the environment. Also expensive, valuable items and items that the store would like to sell in particular shouldn’t be placed in Zone 1 because customers wouldn’t recognize those items because of so many new stimulus around them. In Tommy Hilfiger, there is enough space for a customer to get used to the store. Salespersons don’t start greeting the customers in the entrance; they appear as the customer goes into deeper.
- In Tommy Hilfiger store, which is located on the first floor of Kentpark, near the luxury brands section, there are many tactics to keep the customers in their stores for a longer period. When we look at the design factors of the store, which includes architecture, décor, and furnishing, they have used antique parquet on the floors. There are home-style carpets, which complete the cozy look of the store. Their shelves and hangers are made from old looking woods to give a warm country image. Those atmospheric factors complete the classical image and provide a warm place for customers to shop; therefore by increasing their comfort and pleasure, they also increase the time a customer spends in the store. Walking deep into the store and putting destination items at the back are factors that increase the time spent in store. In Tommy, shirts, which are destination and signature items of the brand, are placed at the back of the store.
- Special treatment such as offering suggestions and helping with the carrying fits with the principle of reciprocation of persuasion. When the salespersons give special involvement to a customer, they feel obliged to buy something even just because the salesperson was very nice to them and catered to them.
- As the physical setting that is formed by appearances and clothing of salespersons create a scene, with combination to the products and brand image, Tommy appears as a social place that customers can satisfy their ego needs according to the Maslow’s hierarchy of needs. Customers are motivated to satisfy their ego needs therefore they are tempted to spend more time in Tommy store because of the environment and experience created in there by all of the above mentioned factors.
- First observation has done at Carrefour. Items that located near the check out registers for people to pick up impulsively are chosen among these products, which are called as fast moving consumer goods. These products are chocolate, chewing gum, sweet, jellybean, popcorn, energy drinks, cold beverages, fruit juice, tooth brush, Gillette, battery, ice-cream, potato chips.
- One of our observations is related with a mother and her child. As we have observed, mother actualized a planned shopping (tomatoes, detergent etc.) while they were in the register line, the child sees the chocolate at his eye level and pick one of them. He convinced his mother to buy it. Also other products such as Gillette or DVD’s are located around the adults’ eye level. This is about perceptual selectivity. The reason is that people only give attention to a small portion of stimuli to which they are exposed. In this case this stimuli is chocolate for a child not a DVD or Gillette because kids are more likely to be aware of stimuli that relate to their needs. Also in H&M they provide products such as socks, accessorizes which takes customers attention while waiting for paying. They organized the store such a way that the people have to stay near these products while waiting.