Psychology of The Store - Part 1: Why a Consumer Shops
It has been said that 70% of purchase decisions are made in-store. In 2012, a Point of Purchase Advertising International (POPAI) study went even farther and said 76% of grocery shoppers make purchase decisions in-store. All of which points to in-store marketing as one of the most powerful and persuasive mediums available. We wanted to better understand “how” a consumer arrives at his/her decision so we consulted The Cognitive Psychology of Shopping and in-store Marketing by Hugh Phillips, PhD.
Cognitive psychology addresses how the consumer processes information in-store and how to translate that into an effective in-store strategy. To quote Dr. Phillips: “Battles may be won in print… but the war is won in-store at the point of purchase.”
We will explore the psychology of shoppers and address in-store strategies that make the most of these insights in a four-part series:
Part 1: Understanding WHY the consumer shops
Part 2: Understanding HOW the consumer shops
Part 3: How in-store decision making affects merchandising
Part 4: How to merchandise your store effectively
It starts with our differing perceptions of value.
What retailers believe…
Consumers, on the other hand, believe that value is not just about the ticket price but also the personal cost in terms of time and effort expended.
What consumers also consider…
With more and more product overlap among stores, price alone isn’t enough to make a difference. The shopping experience itself meets social and psychological needs:
Also consider: the new consumer is…
Motivation to shop also varies on the nature of the shopping trip, and it can even vary in different areas of the store. For example, the consumer may want to be indulged and pampered in the beauty product section and experience the ultimate efficiency in the canned goods area of the store.
Next time: Understanding how the consumer shops!