Why we buy: The Science of shopping

Why We Buy:The Science of Shopping

Tirthankar Sutradhar

What is Shopping?

I don’t mean what is buying

It’s what we call the “grab and go”

I think Shopping is more than the simple dutiful acquisition of whatever is absolutely necessary to

one’s life.

Shopping involves using our senses

Sight

Touch

Smell

Taste

Hearing

3 big things that stores alone can offer shoppers

a. Touch, trial or any other sensory stimuli

b. Immediate gratification

c. Social interaction

Butt-Brush Effect

Good Key Performance Indicators for Retail

• Conversion Rate: How many of your visitors are buying

• Time Spend Rate: The average time shoppers spend in the store (more time = more sales)

• Interception Rate: The number of shoppers who have interaction with an employee (more contact = more sales)

• Waiting time: Customers don't like that

There are certain physical and common anatomical abilities, tendencies, limitations and needs to all people,

and the retail environment must be tailored to these characteristics

Transition Zone

In any section of a store, the first product customer see isn’t always going to have an advantage.

Sometimes The opposite will happen.

You NeedHands

Customers only has 2 hands. And if they carry a bag only 1: Help them with providing baskets, so they can carry more

Bigger baskets, often means more sales

Right-handed takes products from the shelves with the right hand: If you want to push a new product then set the topseller

in the middle and the new product to the right of it

What Retailers and Marketers don’t know

How to avoid

Shoplifting

The Store Windows

• Conversion Rate: How many of your visitors are buying

• Time Spend Rate: The average time shoppers spend in the store (more time = more sales)

• Interception Rate: The number of shoppers who have interaction with an employee (more contact = more sales)

• Waiting time: Customers don't like that

The Store Windows

Change the window decorations often, so the

people passing by wants to come in and browse

Customers have their eyes in front of the head and go

forwards, not sideways: That makes it difficult to see

products/signs/windows to the side

THE STORE ENTRANCE• On the door to the store: The customer only has time to read 2-3 words

• The twilight zone: Don’t place anything important at the entrance. It takes some time for the customers to orientate themselves when they enter a store

• The faster we walk, the less we see: Make the customer slow down as soon as possible

• The best place in the store: To the right in the beginning of the store, just when the customer has slowed down (in most western countries)

IN THE STORE• No amount of merchandise can deter a shopper on his mission: So we have to go along with it

• It is important that the customer in the store can orientate themselves: Don’t put anything in the sight line

• Capture rate: On shelves the customers primarily see what is a little over their eyes and down to their knees

• Boomerang rate: Customers don’t see a whole aisle, often they go in and take the product they need and go back

• Packaging is often seen from a little distance and sometimes from the top or from the side: That must be thought into the packaging design

McDonald's found that 75% of the customers read the menu board after they order, while they wait for their food - during the "meal prep" period, which averages around 1min 40secs.

That's a perfect window for longer message, something

you would want your customer to know the next

time they come.

INSTORE SIGNS• Customers do not look for signs: Signs therefore has to get the customers attention

like other ads, e.g. billboards• You enter a store because you have a task to perform: When the customers has a

task to perform they don’t read signs, but when the task is done they are more open• The signs must be where it is natural for the customer to look• It is difficult to read a sign when you are walking: Keep the message simple• When the customers stand still and is browsing: They are more open for signs and

also text• When the customers is waiting with nothing else to do: Perfect timing for a sign• Too many signs: The customers don’t see any of them

Table Tents

THE STORE ENTRANCE• On the door to the store: The customer only has time to read 2-3 words

• The twilight zone: Don’t place anything important at the entrance. It takes some time for the customers to orientate themselves when they enter a store

• The faster we walk, the less we see: Make the customer slow down as soon as possible

• The best place in the store: To the right in the beginning of the store, just when the customer has slowed down (in most western countries)

About of a storessales comes from

of the customer

80%20%

What Women Want

Women• Shopping is female• Woman take pleasure in shopping and therefore demands more of

shopping environment• Woman like to shop with friends• Woman want more space around them when they look at products, so

they don’t feel they are in the way• Women generally care that they do well in even the smallest act of

purchasing and take pride in their ability to select the perfect thing• In fact its women, not men, who plumbs the metaphysics of shopping

• Shopping is still and always meant mostly for females. When men shop, they are engaging in what is inherently a female activity

What makes women such heroic shoppers?• Shopping was what got the housewife out of the house• Shopping gave women a good excuse to sally forth, sometimes even

in blissful solitude, beyond the clutches of family

Woman: Time in Store

Longest time in store

Shortest time in store

• Woman with a female companion (8min 15 sec)

• Woman with children (7min 19sec)

• Woman alone (5min 2sec)

• Woman with a man (4min 41sec)

Shop Like a MAN

MAN• Men has no apparent joy in shopping - finds what they want with a

minimum of looking and get out fast• Men moves faster than woman through a store• It is hard to get men to look at something they don't intend to buy• They don't like to ask the staff – e.g. Tries to find the right section 1 or 2

times, then give up an leave• The man almost always pays• Men like to get there information about products from written sources

instead of asking in the store

86% of women look at price tags when they shopOnly 72% men do

BUYS ANYTHING THATGOES INSIDE THE HOUSE

BUYS ANYTHING THATGOES OUTSIDE THE HOUSE

Kids

KIDS• Exuberant participants in the world of objects• Children consume more mass media than adults do• If a store is unwelcoming to kids the parents shoppers will get the

message and stay away• Children can be enthusiastic shoppers (or co-shoppers)• Objects placed below a certain point will be touched by children only• Store design should be kid-friendly• Automatic doors , wide aisles and no steps• Shelves should be low

Seniors

Seniors• The demographic of many western countries change so there is more

seniors• They want biggest text size on signs and products• They needs more contrast on signs: yellowing of the sight makes it

difficult to differentiate yellow, blue and green• They needs more light in the store

See Me, Touch Me, Feel Me, Buy Me

Close to 90% of all new grocery products fail, not because people

didn't like them but because people never tried them

Shopper conversion rate increases by 50% when there is a staff initiated contact and it jumps by 100% when there is staff initiated contact and use of dressing room.

people who "buy" spend between one-quarter and one-third of their total shopping time inside the dressing room

Sensual Shopper•We buy things today more than ever based on trial and touch• Supermarkets are wisely trying to become more conducive to

sensual shopping•Women want to test anything that will go against their skin • Today's men would, too, if only someone gave them the chance

THEY LOVE TRYING NEW PRODUCTS, GIVE THEM SAMPLE

Some infant apparel stores now pipe in baby powder through the air ducts, to put shoppers in mind of the sweet-sour smell of the new born baby

Of all the ethnic groups, Asian-American shoppers were most aggressive about opening the packaging and touching the lotions, soaps and shampoos.

WHAT SHOPPERS LOVE• Touch - To be able to touch and investigate the products•Mirrors - Especially when buying clothes• Discovery - It is ok with a little adventure• Talking - With friends, partners, staff about products• Recognition - People like to shop where they are wanted• Bargains - Four for $20 is better as compared to one for $5

WHAT SHOPPERS HATE• Too many mirrors• Lines - waiting time• To ask dumb questions because of poor store design• Goods out of stock• Obscure price tags• Bad service - intimidating, slow, rude, distracted, lazy

Magic Acts

Critique• For those in retailing and marketing, "Why We Buy" is a remarkably

fresh guide, offering creative and insightful tips on how to adapt to the changing customer. For the general public, "Why We Buy" is a funny and sometimes disconcerting look at our favorite pastime.

• The whole book is pretty much a commercial for Underhill's company, but it's still informative and fun reading.

• I would definitely recommend this book because after reading it you will never enter a store and look at it the same way.

ThankYou

Presented byTirthankar Sutradhar