This video explains how situational cues often play a significant role in guiding purchase decisions.
- Today we can buy virtually anything by sitting at home in our pajamas and making a few mouse clicks. Why should we bother going to brick and mortar stores? This very question is why old-school retailers need to innovate to survive. The good news is they can do this by enhancing the physical environment to make it interesting, educational, or even fun. In fact, we know that a very large percentage of buying decisions don't happen until the point of purchase, so it's helpful to think of the retail environment as theater where we try to engage shoppers in a marketing play.
The quest to entertain means that many stores go all out to create imaginative environments that transport shoppers to fantasy worlds or provide other kinds of stimulation. Innovative merchants make creative use of design elements to create fantasy experiences such as the Forum Shops in Caesar's Palace in Las Vegas that transport shoppers to a Roman forum. And the sky's the limit in terms of the potential for exciting new technologies such as augmented reality and in-store beacons that communicate with shoppers' phones to revolutionize bricks and mortar shopping.
If you haven't considered these innovations, you should. Smart retailers want you to come in and stay. Careful store design increases the amount of space the shopper covers, and stimulating displays keep them in the aisles longer. This curb appeal translates directly to the bottom line. When shoppers linger longer, they buy more. Powerful point of purchase signage and displays can significantly increase sales revenue.
Subtle ways to engineer the purchase environment can pay being dividends. For example, shoppers linger longest in front of products that are displayed at eye level midway along an aisle, but they buy the most from displays at the ends of aisles. They're also more likely to choose items from shelves to their left. In addition to simple techniques that capture attention, the design of the space itself has a huge impact on shoppers' experiences.
That's why good store designers pay a lot of attention to atmospherics, the strategic use of design elements like colors, scents, textures, and sounds. For example, stores with red interiors tend to make people tense, whereas a blue decor imparts a calmer feeling. In addition to visuals, all sorts of sensory cues influence us in retail settings. For example, patrons of country and western bars drink more when the jukebox music is slower.
Another study found that diners who listened to loud, fast music ate more food. In contrast, those who listened to Mozart or Brahms ate less and more slowly. The researchers concluded that diners who choose soothing music at meal times can increase weight loss by at least five pounds a month. A bit of advice. If your customers connect with you in a physical environment such a store or an office, it's a smart move to do what the Japanese do.
Go to the gemba. This means the one true source of information. For marketers and retailers, that's the precise place where consumers interact with the product or service. Get out of your office and spend some time in these environments. The more you understand about the shoppers' moment by moment experience, the more likely you'll be to enhance it. Don't hesitate to experiment with the way you display merchandise, such as switching products to eye level.
And pay closer attention to the sensory cues in the environment, including sense and sounds. Remember, you need to fish where the fish are.
First, learn the importance of consumer behavior in helping us understand when, why, and how purchasing decisions are made. Michael shares how factors such as color, shape, and sound influence our perception of brands and products. He discusses gender identity and products geared towards different genders, as well as how consumer lifestyles, values, and attitudes affect product preferences. Michael also goes into external influences on consumer behavior, covering how groups make decisions and how ideas spread. Finally, Michael explores the role emotion plays in purchase decisions, and how you can structure messages to maximize persuasion.
- Sensory marketing as a strategic tool
- How gender identity can affect product choice
- Personality and brand image
- Decision-making in groups
- Retailing as theater
- How ideas spread through the market
- Persuasive communications
- Influencing consumer behavior