The psychology of retailing
Another holiday shopping season is here. You have the best of intentions and a budget all worked out. This year it will all go perfectly. You have probably said this for several years and often failed to stay in budget if you even had one at all. Maybe you feel badly about it. Don’t! There is an army of marketers out there who have employed every trick to get you to spend every penny you have and many pennies you don’t. They use psychology, deception (not illegal deception) and your emotions and senses. Here I will talk about some of the tricks they use so you will be better aware and hopefully can stay on track.
Speed
Ok. You arrive at the mall. Hopefully you find parking and you are ready to get in there, get what you want and get out as fast as possible. Wrong! You find yourself pushed this way and that, having to move around displays and tables and other people stopped in the aisle. This is not accidental. Retailers have no interest in getting you back out of the shop. They want you to slow down and see things that might tempt you into an impulse buy. Tables and displays are carefully arranged to slow you down as you come in the door. High profit margin items will be in these areas e.g. latest fashions.
Impulse buys
Often you will have to pass the cosmetics to get to the rest of the shop. Cosmetics are often an impulse buy for women. Cosmetics may also be near the shoe area so that while you are waiting for your size, your bored eye travels over to the cosmetics counter. Notice how many small items are near the register? These are there to encourage impulse buys. Some stores tell you of some great deal as you are paying for your goods, often drawing your attention to the items around them. Impulse buys often occur at the end of aisles and so high profit items are usually there. Shops are designed with as many ends as possible to maximize these high traffic areas. You will see the brand name items at the ends of aisles and the generic often put in the middle of all the shelves or on the bottom shelf below your eye level.
Displays
There is a tremendous amount of thought and design put into displays. Triangles work well. Tall items in the center and small items stacked around them. The triangle draws your attention to the center and usually these are high profit margin items. Afraid to mess up the folded clothes? Sales associates are now trained to leave a couple of items unfolded to attract people to touch and try them. Eye level shelving is premium since our attention is drawn there. Very high shelves or deep low shelving is avoided. Tables allow you greater access and are more inviting than shelves. Again these are used for premium items.
Senses
Lighting is critical to mood. Bright means modern. Spotlighting can mean classic and spot lights are used to attract you to certain displays. Music also has to be matched to the mood the retailer wants for the shop. Up to date “cool” music creates a hip atmosphere where fashion conscious will shop. Classical music can create an air of high brow exclusivity. Ever notice that some shops have a distinctive smell? If not, pay attention next time you go to the mall. Smells can create moods as well as associations. Got a great piece of clothing last time at a particular shop? Next time you wander by or go browsing inside, the smell works on you subconsciously and you may remember that deal and be more inclined to buy there. You associate the excitement and satisfaction of your previous purchase with that particular smell. Colors of course are used to create mood and to highlight areas.
Sales assistants
Many sales assistants are now displays themselves. They often have to wear the clothes from the store and some stores are using models at the doorway. They often leverage the high school popularity effect by making you want to be popular too. Brand names use this to their advantage.
Refreshments
Many department stores place their refreshments on the top floor or near high profit items. To get to the top floor and out again, you have to pass all their retail items twice.
Signs
Signs usually have only a few words on them so you get the message even if you glance at it. Signs that are not in direct sight can also register in our brains especially if repeated.
Sales
Discounts are shown as percentages and many people do not do the math to see how much they are truly saving. Another trick is the discount on a discount. “Get 10% off and a further 20% off today only” Yes, the price of the item is lowered but did you think it was 30% off the price? Most people do and most do not naturally want to do the math in the shop.
How it works:
Say $100 item at 10% off and then further 20% off
$100 – 10% ($10) = $90
$90 – 20% ($18) = $72
Same item $100 at 30% off
$100 – 30% ($30) = $70
Ok, you say. Its only $2. Well firstly it’s your $2; secondly multiply that $2 by all the customers who buy and it adds up quickly and thirdly the more expensive the item the more this adds up e.g. $1000 item would benefit the shop by $20 a customer as well as their usual profit.
The latest and greatest
Go into a shop wanting something reasonable. You will find yourself under pressure to “upgrade” to the next level. This happens a lot with electronics. You are told that they have a limited amount of the very latest equipment in stock and can fix you up. You are told that what you want will not do everything (did you want everything?) or you are told it will be obsolete very quickly (electronics are usually obsolete close to when you walk out the door). Counter this by deciding what you need to fulfill the task you want to accomplish. Then stick to your guns. If you find out there is something new when you are in the shop and are tempted to buy, walk away and go home. Think it over, research it and make a decision away from the sales pressure.
Ok, you are now prepared for the shopping season. Go out there and recognize the retail forces ready to pocket your money and be aware of the tricks.
Last piece of advice: do not shop on an empty stomach. Guess where the cafe is? See refreshments above.
Happy Holidays and smart shopping
B.G. Smith
http://www.articlesbase.com/advice-articles/manipulating-you-for-the-holidays-82276.html
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