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Consumer Behavior Distribution programs

Consumer response to distribution programs

Consumer Behavior Distribution programs Outline • In-store shopping behavior • The retail environment • POP marketing .

Consumer Behavior Distribution programs In-store shopping behavior a 1995 study of over 4000 US consumers by POPAI found that many purchases in supermarkets and at mass merchandisers were not planned in advance. purchases fell into the following categories: – purchase specifically planned before entering the store (30/26 percent). but no intention to buy a specific brand (6/18 percent). – purchase planned in general at the product class level. – purchase unplanned and entire decision process enacted in the store (60/53 percent). – intended purchase substituted with a related product or different brand (4/3 percent). .

sporting goods. seafood Eggs Coffee Baby food/formula % 93 93 90 90 89 33 47 53 58 58 • Lowest in-store decision rates: .Consumer Behavior Distribution programs In-store shopping: Supermarkets • Highest in-store decision rates: – – – – – – – – – – First aid Toys. crafts Houseware/hardware Stationary Candy/gum Produce Meat.

videos Coffee. plumbing Infant/toddler ware Garbage bags Disposable diapers Baby food Eyedrops and lens care Prerecorded music. cocoa % 92 91 90 90 88 35 35 52 54 55 • Lowest in-store decision rates: .Consumer Behavior Distribution programs In-store shopping: Mass merchandisers • Highest in-store decision rates: – – – – – – – – – – Apparel accessories Foils. electric. food wraps Hardware. tea.

entrances. and interior design such as color. as well as displays and in-store media.Consumer Behavior Distribution programs The retail environment • store design and ambience: exterior design such as architecture. lighting. and display windows. . and sound. free-flow. • store layout: grid. categories. • merchandise presentation: allocation of space to departments. and items. and boutique layout.

store atmosphere was conceptualized in terms of certain emotional states that intervene between in-store environmental stimuli and approach/avoidance behaviors: in-store environmental stimuli emotional states pleasure arousal dominance approachavoidance behaviors .Consumer Behavior Distribution programs A model of store atmosphere (Donovan et al.) based on Mehrabian and Russell’s (1974) environmental psychology model.

).).g. • approach-avoidance behaviors include enjoyment of shopping. etc. satisfied-unsatisfied. .g. happy-unhappy. pleased-annoyed. influential-influenced. dominant-submissive. and likelihood of returning to the store. willingness to talk to store personnel. wide awake-sleepy.). aroused-unaroused. etc. – dominance: feeling of being unrestricted and free to act in a variety of ways (controlling-controlled. etc... – arousal: intensity of feelings (e. excited-calm. time spent browsing.Consumer Behavior Distribution programs A model of store atmosphere (cont’d) • three emotional dimensions (the so-called PAD model): – pleasure: valence of feelings (e.

the results indicated that pleasure was the major determinant of shopping-related intentions and that arousal influenced intentions in pleasant environments. students visited and rated retail environments on the PAD dimensions and indicated their intentions to engage in different shopping-related behaviors. the findings showed that pleasure was a significant determinant of extra time spent in the store and unplanned spending. and arousal tended to depress unplanned spending in unpleasant environments. . female shoppers at two discount department stores provided ratings of pleasure and arousal and the researchers measured how much time they spent in the store and how much money they spent. • in another study.Consumer Behavior Distribution programs A model of store atmosphere (cont’d) • in one study.

.Consumer Behavior Distribution programs In-class exercise: Store atmosphere Go to a Victoria's Secret store and analyze what the company does to create a certain store atmosphere that might induce shoppers to stay in the store longer and engage in impulse purchasing.

– fast tempo music (94 beats per min or more). – daily gross sales. • the dependent variables of interest were: – pace of in-store traffic flow. . – no music. – awareness of background music. supermarket shoppers were exposed to one of three background music treatments: – slow tempo music (72 beats per min or fewer).Consumer Behavior Distribution programs Using background music to affect the behavior of supermarket shoppers (Milliman) • during a nine-week period.

86 sec 127.93 sec sign. .740 $12.Consumer Behavior Distribution programs Using background music to affect the behavior of supermarket shoppers (cont’d) • pace of in-store traffic flow: no music slow music fast music 119. • daily gross sales: no music slow music fast music ? $16.113 sign. • no significant differences in awareness of background music.53 sec 108.

and some changes in product positioning (e. making intra-brand price comparisons more difficult by displaying brands by package size ). deletion of slow-moving items. . specifically. separate planograms were designed for urban and suburban stores that resulted in changes in facings. Hoch. • product reorganization: cross-merchandising (putting toothbrushes at eye level and moving toothpastes to the upper shelf) and ease of shopping (alphabetical organization of condensed soup flavors. changes in shelf-height.. • space to movement (STM): customization of product allocations in proportion to market share based on historical sales in demographicbased store clusters. more automatic dish detergent in suburban stores).Consumer Behavior Distribution programs Shelf management and space elasticity (Drèze.g. and Purk) • investigation of the sales and profit potential of micromerchandising (store-level shelf management).

g.g. . • brand-level results: – in terms of vertical location.. but usually only up to some point (in many cases the returns on investment in shelf space were low). average sales increase of 3.Consumer Behavior Distribution programs Shelf management and space elasticity (cont’d) • category-level results: – modest but nontrivial gains to implementing customized STM planograms (e.g. – significant sales and profit increases as a result of complementary merchandising (e.9% across 8 product categories). – more shelf space is better. but no consensus on whether it is best to be located on the edges or in the center of a set. increase in brush and paste profits of 6%).. alphabetized soup sales decreased by 6%).. eye level is the best position. – mixed results for ease of shopping (e.

• POPAI studies show that POP materials can substantially lift brand sales (e. ShelfTalk.). .. – temporary POP displays (to be used for fewer than 6 months).Consumer Behavior Distribution programs POP materials • types of POP materials: – permanent POP displays (to be used for six months or more). in a joint study with Kmart and P&G.g. etc. displays for paper towels and coffee increased sales more than fourfold). ActMedia Carts. – in-store media (advertising and sales promotion materials such as POP Radio.