Saturday, November 07, 2009

Get them to Spend More with You


It's All in the Presentation

At this time of year, food merchants—from purveyors of gourmet treats to large-scale grocers—are focused on one goal: getting customers to add more items to their shopping carts. 'Tis the season of the impulse buy!

Marketers who want to encourage unplanned purchases this holiday season may find the following bit of research interesting.

Researchers interviewed shoppers in a variety of food stores to isolate key factors (category and customer characteristics, and in-store customer activity) that boost, or kill, impulse shopping. Among their findings:

  • Customers with coupons make fewer unintended purchases. The more focused a customer is on a specific purchase that will save money, the less likely she is to add more to her cart.
  • Customers who shop more frequently buy fewer items. They may focus more on immediately needed items, and spend less time in-store per visit.
  • Women tend to impulse-buy more than men. When Mom says, "Pick up some milk," Dad picks up some milk, and leaves.
  • Shoppers who shop more aisles make more unplanned purchases. It's simple: The more they see, the more likely they are to buy.
  • In-store displays provide the biggest boost to impulse shopping. Cool displays attract attention—and encourage purchases.

Based on their findings, the researchers offer these tips:

  • Consider your layout. "Consumers should be encouraged to shop as many aisles as possible (in general) and be exposed to as many product categories and in-store displays as possible (in particular)."
  • Mix things up. "Products that are frequently purchased (e.g., milk) should be placed in locations that will lead consumers past as many other categories as possible, or [be] displayed next to less-frequently purchased products."
  • Decorate. "Making the shopping experience as pleasant as possible will increase time spent in the store"—and add to the likelihood of an impulse buy.

The Po!nt: Play dress-up for the holidays. Merchants who make the in-store experience more fun (and more lengthy) this holiday season stand the best chance of moving product.

Source: "The Interplay Among Category Characteristics, Customer Characteristics, and Customer Activities on In-Store Decision Making," by J. Jeffrey Inman, Russell S. Winer and Rosellina Ferraro. Journal of Marketing, 2009.

Sphere: Related Content

No comments: