1. USING ETHNOGRAPHY AND
OBSERVATION RESEARCH TO
UNDERSTAND CONSUMER
BEHAVIOUR IN THE
RETAIL AISLE
Barbara Foster
Cesar Carbajal
Max Ruckman
In order to increase sales, it is important to understand what happens within the
mind of the consumer while in the retail aisle. This paper describes research
conducted for Black & Decker, Society Brass Collection among consumers while
shopping for door hardware.
Consumers were observed, their behavior quantified, and additional in-depth interviews
conducted. During the interviews, consumers shared insight into their shopping process
and explained reasons for their observed behavior. Results present an in-depth
understanding of how retail cues, product placement, brand loyalty and package design
impact the purchase decision while in the retail aisle.
INTRODUCTION
Black & Decker, Society Brass Collection approached Market Research
Associates with the need to understand how to improve retail sales at the point of
purchase.
Most consumers are unable to accurately report their behavior and define
What influences their decisions? To overcome this barrier and provide Black &
Decker with the necessary insights, we developed a process too thoroughly understand
the sub-conscience motivators driving consumer behavior in the retail aisle.
Using our observation instrument, a total of 521 consumers with intent to purchase were
observed and their behavior noted and quantified. After being observed, 86 long
interviews and 157 short interviews were conducted in which consumers shared
insight into their shopping process and explained reasons for their observed
behavior. Additionally, specific issues of language, claims, media and perceptions
were probed.

2. This report details the findings of our research conducted among individuals who were
shopping at Home Depot, Lowes and Expo. This research explores their product
perceptions; brand reactions and overall aisle dynamics that occurred during the
shopping process. Observations and intercepts were conducted in Los Angeles,
Orange County, Dallas and Atlanta at Home Depot, Lowes and Expo.
Behavior One: View and Observe Brands Observation
Consumers enter the aisle with little category knowledge. Before shopping, the
customer’s primary source of knowledge was a previous trip to the store. In addition,
for the majority of shoppers, door hardware was not the only reason for visiting the
store on this particular day. (See figures l and 2). In order to gain knowledge,
consumers begin the shopping process from the center of the aisle. Of those
consumers whose shopping process begins by “viewing and observing the brand”
(45%) about 93% began their shopping process by viewing and observing Schlage,
which in most cases is positioned in the center of the aisle.
Finding
The center of the aisle is the central point where consumers assess the relative
price/value of all products in this category. It is from this physical position in the
aisle that consumers determine where their product is located, whether high-end, mid
or low-end. Consumers instinctively assume that lesser quality products are found
to one extreme and higher quality products to the opposite extreme. The center
therefore is viewed as the physical location where mid-end products are found. Anything
to either side is perceived as either lesser quality or superior quality. Schlage is not
necessarily the common reason why consumers gravitate towards the center of the
aisle, as is the physical location of the brand. Consumers simply use the center to
assess value (regardless of which brand is present) and “find their way” to the product
category they are purchasing. It is worth noting, however, that although brand may
not be the main reason why consumers gravitate towards the center, once in the center
the brand is associated with a mid-end product simply because of its relative location to
other brand categories.
Implication
A dominant center positioning for the brand will likely promote the brand as the standard
by which other products are compared: The fact that most consumers start their
shopping process “front and center” suggests that no other location is more effective in
capturing the consumer’s attention in viewing a particular brand. Investing in the right
aisle position may prove far more valuable than gaining side displays, bins, carts
and space in other areas of the store.

3. Behavior Two: Price From Afar Observation
In sequence, the second most observed activity is comparing price from afar. Price
shoppers move quickly to a product at this point having already determined lowest
price.
Finding
Because consumers enter the aisle with little category knowledge (the high-end is
the exception) price is an important guide. Physical position of the brand, followed by
determination of price creates the all-important perception of the best value for the
consumers needs. About 31% compare price from a distance before physically
engaging the product.
Implication
If price is to be a differentiating factor, it should be displayed in a manner that
shoppers can see it from across the aisle.
Behavior Three: Interacting with the mounted product Observation
The next most frequent activity is physical contact with the product: Interacting directly
with the mounted product. Nearly all consumers engage the mounted product
displays. About 90% of consumers had physical contact with the interactive displays
found in the aisle. Those least likely to touch and feel the displays were low-end
customers and mainly because their purchase was quick and uninvolved.
Observation
High-end consumers are driven more by the feel of the product. About 21% of high-end
consumers say that the feel of the product is “extremely influential” while only 9%
of mid-end customers give a similar response followed by a mere 4% of low-end
consumers who view the feel of the product as “extremely influential”.
Finding
The importance of being able to feel and touch the mounted product is exemplified by
remarks suggesting that most of the time non-working displays result in loss of
sales. This includes displays where the thumb latch is difficult to operate, knobs that are
difficult to turn and levers that get stuck in one position.
Implication
A malfunctioning product can be fatal. A lock that is easy to break, that “struggles to get
the job done” is inappropriate for security needs. Such signals of poor performance

4. and lack of durability undermine feelings of safety — rendering all other value-
added features such as style and finish irrelevant. A brand that “proudly” displays
faulty merchandise sends a strong brand message regarding untrustworthiness and
low commitment. Rigid store checks ensuring absolute compliance to functioning
products are mandated by the purchasing dynamics and consumer expectations
driving this category. Incentive programs that motivate and reward compliance
should be implemented.
Implication
Beyond assurance of durability, the high-end consumer needs to feel a sense of
superior craftsmanship, in this case communicated by a “special experience”.
A malfunctioning product always loses the sale. A good feel can often make the sale.
Behavior Four: Holding and Physically Examining Box, Reading the Front and
Side of the Box
Observation
Upon picking up the box, the typical mid and high-end consumer looks at the front for
about 10 seconds on average, then turns the box to one side and reads for about
35 seconds, then sets it down and steps back to survey the aisle. He then pauses for
about five seconds and then engages a different product and performs a similar
behavior. The low-end customer picks up the box and looks for pictures/writing mainly
illustrating the installation process, or whether it’s a closet, office, room, bath,
kitchen, keyed entry or interior product; typically spending about 20 seconds reading
or viewing the box.
Finding
Following basic messages of style/finish/security and function bulleted on the front, the
consumer moves quickly to the assurance of easy installation: among the most critical
factors taken into consideration when purchasing door hardware. Using a five-point
scale, consumers give easy installation a 3.71 rating and 61% say it is an “extremely
important” issue in the selection process. (See figure 3.)
Finding
Later in the process, following additional interactions, the dominant functional question
the consumer asks a floor salesperson regards key compatibility with other
products. It can be assumed at this point that the consumer is looking for but cannot find
such assurances on the package.

5. Implication
The need for a package to project user friendliness is fundamental. Overt assurances of
ease are essential. Given the involvement in the side of the package where such
information is prominently displayed, the importance of clarity, simplicity and
intuitive ease should be a priority.
Implication
The need to overtly address ease of keying is great. There are two issues in this
regard: l) the ability of one key to work different locks even within the same brand;
and 2) compatibility with different brands. A message of one key for all major brands
would be optimal.
Behavior Five: Comparing Different Brands and Within Brands
Observation
There is a compelling need for consumers to compare brands. Approximately
112 consumers observed and compared within the same brand and 64 compared
between different brands. Even consumers that stay Within the same brand compare
to other brands justifying superior value and a brand that fits their needs.
Finding
There is little brand loyalty as 65% report a willingness to trade their brand to get the
features they want. It is not brand loyalty driving the purchase so much as the
product that meets their specific needs:
- A product with the right look (4.39 on a 5-point scale)
-The product finish (4.34)
-Matching the same style (4.13)
-The security features (3.91)
Implications
It is very important to be cognizant of competitive claims. To match or exceed
those claims provides important clarity and ease of determining best value for the
additional cost. The consumers’ need to compare is much better addressed by the
uniform display and slavish adherence to a seamless price-value spectrum giving the
consumer exactly what they want: an easy Way to determine superior value based
upon their needs. (See figure 4.)

6. Behavior Six: Consulting a Customer/Spouse Observation
The next most observed behavior ir1 the aisle, particularly true of the mid to high-end
consumer, is consulting with another person in the party which in most cases (60%) is a
spouse or young child (17%).
Finding
Purchasing door hardware often requires spouse approval. This is especially true
at the high end. Although husband and wife play a different role in the purchase
process (husband looks for brand/durability, wife looks for style and finish) the
decision to purchase is mostly a joint decision (37%).
Implication
Advertising should be tailored to appeal to the couple’s preference. Brand promotions
on magazines typically read by males should emphasize brand quality and durability
while those read by females should highlight the look, style and feel of the brand.
Finding
There are significant regional differences in spouse involvement. Although this study
was not designed to identify regional differences, the data clearly suggests major
differences with actionable implications impacting among other things an optimal media
and communications plan.
Implications
The media implications of the differences between the South, as exhibited by
Atlanta and the West are as follows:
- In the South, a heavy emphasis on durability, toughness and security to a dominantly
male audience would be most efficient.
- In the West, a split emphasis recognizing the dual needs of style and security,
and the gatekeeper role of the spouse, would be rewarded.
Behavior Six: Seeking the Advice of a Sales Person Observation
Following “consultation” with another customer or spouse, the consumer
generally picks up a nearby brand for reasons of comparison, information, and
clarification and in that same vein seeks a salesperson to provide similar

7. information. Observations reveal that a substantial number of consumers (187) at some
point needed clarification or assistance from the sales representative.
While low-end consumers are less likely to seek help from the sales person (only
30 individuals approached the sales person), mid-end (64) and high-end (93) are more
likely to speak with the sales representative.
Finding
Sales representatives play a key role in the purchase process. Approximately
160 respondents felt that the sales representative played an influential role in the
purchase process and rated them accordingly. Although consumers give higher
influential ratings to spouse (3.95), contractor (3.31) and friends (3.23), suggesting that
sales representative’s role is significantly less influential, comments reveal that in
terms of selection and product understanding the sales representative is extremely
influential (3.21). This clearly suggests that consumers view the sales representative as
an authority figure with category knowledge, which can influence product selection.
(See figure 5.)
Using ethnography and observation research Implication
Ensuring floor sales support is critical when creating positive product perceptions. In
that most decisions to purchase are made in the aisle, the role of the sales person is
highly influential (3.21 on a 5-point scale). A low opinion of floor sales p6I‘SOI1l'l6l
toward a product puts an additional burden on the impact of display, demonstrators and
mounted product. A strong focus of floor salespersons on the importance of security
is best addressed with packaging claims that meet and exceed competitor security
claims item by item, allowing for greatest clarity and ease of comparison.
Behavior Seven: Some Purchase a Different Product than Intended
Observation
Some consumers, who intended to purchase one brand when entering the store,
purchased a different brand instead.
Finding
When a particular brand is under consideration for purchase, it is likely to be
purchased. However, some consumers change their mind while in the retail aisle.
(See figures 6 and 7.)
INTENDED BRAND PURCHASE BY PURCHASED BRAND
Implication

8. There is opportunity to educate the consumer and change their mind while in the
retail aisle. Particularly for this category, the retail aisle should be managed with as
much effort and strategic planning as any other portion of the marketing plan.
Using ethnography and observation research
The High-end Consumer
Observation
High-end consumer’s purchase process is very involved, influenced by
contractors and advertisements and driven by the look and feel of the product.
(See figure 8.)
Finding
When comparing between brands, product finish is paramount. Over one-third
(37%) of high-end customers indicate the product finish influenced their decision. In
addition, high-end customers are twice as likely as mid-end consumers and three times
as likely as low-end consumers to be influenced by the feel of the product.
Finding
Because Society Brass has a large competitive set, a consumer emphasis on
finish is a two-edged sword. Consumers are clearly Willing to trade down from
Baldwin for the finish they want. Consumers are also willing to favorably compare
Society Brass to Schlage Artisan for the finish they want. In that comparison, the
superior value of Society Brass is easily lost. To achieve conversion and grow
the brand, Society Brass must address this issue.
Implication
It is important to understand the censurer’s need for a communication or assurance of
superior craftsmanship at the high end. To fill this need, it is important to provide cues
that consumers can quickly understand. Such messages are best communicated in
an intuitive and “demonstrative” fashion.
“Let me see for myself.” “Show me.” The opportunity is to force more interaction with the
product through display, driving greater brand consideration. Greater involvement
with the brand and display should result in significantly greater sales, the greater the
brand involvement, the greater the conversion.

9. Observation
High-end consumers come to the store armed with information. High-end
consumers are more likely to mention magazines, contractors and locksmiths as
sources that assisted them in making an informed decision.
Finding
Magazines and some television shows are an influential source. High-end consumers
report with higher frequency that advertisements play an influential role in the purchase
decision (3.0 (high) vs. 2.5 (mid) and 1.9 (low)) on a 5- point scale. Aside from the
aisle and personal trial and error experience, magazines are the third most
commonly mentioned source of information where consumers learn about door
hardware (17%), in particular, Architectural Digest, while the television show This Old
Home also garners high recall. (See figure 9.)
Implication
Promotion of Society Brass in popular magazines such as Better Homes & Gardens,
House & Garden, Architectural Digest, and Metropolitan Home may prove most
effective in reaching as Well as convincing not only consumers but other professionals
that influence the home owner’s decision to purchase.
Finding
High-end customers are significantly more likely to be undertaking major remodeling of
the home. Results indicate that they are over 2 1/2 times as likely as Mid-end
customers.
Implication
Target major remodeling contractors. The incidence of major and minor
remodeling explains the relatively high standing of television show This Old House
among consumers in the market for door hardware. Advertising on this television
show could extend the reach of Society Brass to include more of this important
market. Also consider a direct mail campaign to elite remodeling contractors.
Structuring a contest along the lines of the successful Society Brass direct mail
campaign to Custom Home builders Would tap an important and especially relevant
market
Observation
Sales personnel are respectful of all high-end brands. They tend to play a role of
consultants rather than “pushing” one brand over others, mostly confirming what
consumers already feel or know.

10. Finding
More often than not, high-end consumers enter the aisle looking for handle sets. These
consumers are about three times more likely to purchase handle sets than mid and low-
end consumers. The most popular item purchased by high-end consumers was the
handle set (72%) followed by deadbolts (17%) and interior levers (17%). (See figure
10.)
Implications
Show Society Brass handle sets on a variety of distinctive architectural exteriors. Put
the product in context for the greatest number of potential customers. Leverage the
use of Society Brass handle sets to increase sales of interior knobs and levers.
Consider package inserts that promote the entire line.
The Mid Consumer Observation
Unlike the low-end consumer, the shopping process for the mid-end consumer is
very involved where brand is important and security features, look and finish are more
seriously considered.
Finding
Mid-end consumers spend close to two minutes in the aisle. The amount of time
spent in the aisle is a reflection of the importance attributed to the selection of the
product. Consumers in this segment want assurance that their selection is based on
serious consideration of the features as well as price.
Mid-end consumers tend to spend a significant amount of time in the aisle comparing
within the same brand. This, however, may be due to the perception that aside
from Schlage no other comparable products exist.
Finding
The mid-end consumer takes the investment seriously. The typical consumer in this
category usually visits the store about two times before deciding to purchase,
which reflects the seriousness of the product consideration (1.81 numbers of visits).
Implications
“Serious” is the operative Word here. For Kwikset Maximum and Kwikset Ultra-Max to
be considered serious alternatives against competitors, messaging must match
or eclipse competitor messaging on measures of durability and security. This
includes subliminal messages as well as overt messaging. This task places

11. considerable importance on mounted displays with functioning product and encourages
prominent and intuitive messages of security, quality and durability. Sales associates
should be trained to respect the product and know the story. Finally, displays must be
crisp, uniform, well stocked and effectively presented.
The Low-end Consumer
Observation
Low-end consumers’ shopping process is relatively uninvolved, fast, entails little thought
and virtually no research of the product.
Finding
Low-end consumers want a fast and easy shopping process. Low-end consumers
spend the least amount of time (1.25) in the aisle when compared to mid-end
(1.83) and high-end customers (1.98) and require only one trip to decide which
product to purchase. They typically, but not always, start at the center of the aisle
then quickly identify the location of the lower price product giving little thought to
which brand they select. Among the most common reasons why a low-end
customer selects a product are the need to replace damaged hardware (53%),
price (45%) and replacing “existing product just like it” (26%).
Finding
Few influence the low-end shopping process. Only 19% of respondents who were with
someone report being accompanied by their wife, suggesting that spouses are not
likely to be involved in the shopping process (only 27 respondents were seen
accompanied by someone in the aisle). In addition, they are less likely to be influenced
by magazines or TV advertisements 1.90 compared to 2.92 high-end, 2.70 mid-end (on
a 5-point scale).
Implications
Selection of product for low-end consumers must be made easy, convenient and easily
identifiable in the aisle. User-friendly displays are the indicated action. Using
language to identify the product’s function such as bathroom knobs instead of interior
door knobs/levers, or kitchen knobs/levers instead of keyed entry, closet
knobs/levers instead of dummy knobs/levers may also help simplify the shopping
process. Intuitive icons, friendly pictures, assurances of ease are all recommended.

12. SHOPPING TRIGGERS
A Need to Replace Damaged Hardware
Observation
Among the most common reasons why consumers in general are in the store is
to replace damaged hardware. These consumers (replacing damaged hardware)
typically select the brand that provides an exact match (25%), with the right look
(22%) and the right finishes (27%). High-end consumers are typically doing some
remodeling while mid and low-end consumers are replacing existing damaged
hardware.
Finding
Customers purchasing handle sets and keyed entry knobs are more likely than
customers purchasing other products to be driven by a need to replace existing
damaged hardware. Approximately half of respondents purchasing a keyed entry
knob (53%) and those purchasing a handle set (48%) say that the main reason
for visiting the store is to replace existing damaged hardware.
Consumers replacing an existing damaged keyed entry knob are mostly driven by
security needs that are perceived as being compromised as a result of the damaged
hardware.
Implication
Leverage the vulnerability of this consumer: A security message or a call to
upgrade security “Don't just replace it, upgrade it” might be especially meaningful
to locksmiths, and to target in do-it-yourselfer publications.
Remodeling Their Home
Observation
The second most common event that puts consumers in the market is remodeling,
including major and minor remodeling and new doors (47%).
Finding
Consumers remodeling their home are more inclined to select the brand because of
the look (41%), the finish (28%), security features (19%) and feel of the product
(19%). They are also more likely to be purchasing handle sets (37%), combination
packs (30%) and interior knobs and levers (29%, 20% respectively).

13. Finding
Consumers purchasing levers are more likely to report that major remodeling is
the main reason for their purchase. Nearly 41% of those who purchased an interior
lever report major remodeling as the reason for their purchase of door hardware. Only
21% of those doing major remodeling report purchasing interior knobs and about
18% report purchasing handle sets.
Implication
Installing interior levers instead of knobs may be perceived as the modern way to
remodel. The data reveals that levers are the product of choice when remodeling,
suggesting that levers may have a stronger esthetic appeal to homeowners doing major
remodeling. Promoting levers as the modern way to upgrade or improve home
appearance may be an effective communication message. Depicting levers in
advertisements in home improvement magazines may prove persuasive, as consumers
will have a visual understanding of how levers look in modem homes. Promoting an
upgrade to levers on interior knob packages may also stimulate consideration.
CONCLUDING REMARKS
This research proved valuable on several levels. First, our careful combination of
quantitative, qualitative and ethnographic techniques uncovered insights our
client needed. Second, we uncovered key motivations experienced by their retail
customers that were subsequently used to increase sales.
For Black & Decker, Society Brass Division, the benefits were numerous.
Following the research conducted by Market Research Associates, Society
Brass Collection embarked on a rebranding project for Kwikset, Kwikset Plus and
Kwikset Titan products. The research performed with Market Research
Associates gave them insights on how Society Brass Collection wanted to be presented
both on shelf and off-shelf. After viewing the research, Society
Brass Collection decided to create a position both above and below Schlage,
especially since this competitor had the perfect position in the aisle based on the
research insights regarding where the consumer begins shopping. Society
Brass Collection worked with a branding company to help develop their new brand
image which included new packaging, brand names and a new position against
Schlage.
As a result of the research, Society Brass Collection also developed new sub-brands as
follows:
-Kwikset became Kwikset Security
-Kwikset Plus became Kwikset Maximum Security
-Titan became Kwikset UltraMax

14. Society Brass Collection used the Kwikset Maximum Security to position just below
Schlage in price and aisle position. They also used Kwikset Ultra-Max to position
above Schlage in price, performance and aisle position.
Based on insights provided by Market Research Associates regarding packaging,
Society Brass Collection changed their packaging to Red. Ultra-Max was given a
foil printed finish and Maximum Security a non-foil finish. This change made it easy to
tell the difference between the levels of brands. In addition it was also easy to see
that all sub-brands belonged to the Kwikset (Society Brass Collection) family.
By positioning the product on both sides of Schlage, Society Brass Collection was
able to create a sea of red which helped draw the consumer away from the middle of
the aisle and do a better comparison among the product offering. This allowed
Society Brass Collection to communicate their product and brand story.
The end result was a 48% increase in POS at Lowe’s in 2002 vs. 2001. This was
in addition to the increase in 2001 of 27% which included approximately six months of
the new product launch. Society Brass Collection took serious market share given that
the lock category at Lowe’s increased only 15% during that time.
Society Brass Collection also reinvented our off-shelf program with end caps and
pre-packed shippers which allowed the store to unwrap displays with product ready for
in aisle positioning.
The strength of the insights provided by Market Research Associates is
evidenced by what happened at Home Depot. Home Depot did not take on the entire
program like Lowe’s, and the result was that at Home Depot, Society Brass Collection
saw a lower increase of just 12%.