* Professor of Marketing, College of Business Administration, University of the Philippines, Diliman,Quezon City. (E-mail: email@example.com).
IN-STORE MEDIA: HOW EFFECTIVE ARE THEY?EVIDENCE FROM THE PHILIPPINESBen Paul B. Gutierrez*
This paper investigates the effectiveness of an in-store radio in urban Philippines. Measures of international in-store media effectiveness studies are first reviewed. Then,this study replicates the Arbitron Retail Audio study using a sample of 600 Filipinoshoppers who were interviewed to obtain shopper perceptions, attitudes toward in-store radio and the corresponding effect on purchase behavior. Implications about making in-store media more effective are described at the end of the paper.
Keywords: marketing communication, in-store media effectiveness, shoppermarketing, in-store radio
or “in-storemedia” is a science that encompasses a hugenumber of marketing practices andtechniques such as deploying point-of-purchase (POP) displays, optimizing in-storeproduct presentation, creating cross-salespromotions and product adjacencies, andmay also include product packaging and ownstore’s internal and external branding (Gerba,2006). Neff (2007) also referred to retailmerchandising as shopper marketing.
Fromsimple signage of retailers hoping to promotespecials, in-store media has evolved intovarious incarnations including ads onshopping carts, cart straps, aisles and talkingshelves, end-aisle displays, floor signage,kiosks, interactive flat panels, in-store audioand video transmissions (Kotler & Keller,2009).Lempert (2005) asserted that in-storemedia can be easily tailored to currentmerchandising and promotional executions,which can be targeted to specific consumergroups through use of technologies, whichidentify them once in the store. RonaldFernandez, the shopper insight manager of Unilever Philippines, claimed that point-of-sale (POS) materials help customersaccomplish five functions: “navigation(helping them find what they need),facilitation (helping them decide whatproduct to buy), education (teaching themhow to use the product), inspiration (makingthe shopping experience exciting andinteractive) and repetition (remindingshoppers on what items they forgot)”
(Arceo-Dumlao, 2008).Walmart has had in-store televisionnetwork since 1990s while Subway tested in-store video system in 2006 (Manners, 2006).United Kingdom’s Tesco rolled out itsnarrowcasting program in 2004 followed byKroger (Breen, 2004). Tesco TV’s trial run inthree stores was done with an average of 50plasma screens throughout the supermarketin 2003 (Grande, 2003). Advertisements onWalmart TV run on 125,000 TV screens in3,100 stores and appear three times an hour
Philippine Management Review
2008, Vol. 15, pp. 65-82.