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Pick Me! Pick Me!Getting Products from Seen to Sold

Dr. Bridget K. Behe, Ph.D., ProfessorDepartment of HorticultureMichigan State Universitybehe@msu.edu517-353-0346

Store 68% of buying decisions are unplanned

(Stahlberg & Maila, 2010); displays play a key role in sales.

Well-organized displays have the capacity to increase sales 300% (Nordfalt, 2011).

Thinking (visual cognitive processing) about a display requires the eyes to attend to an object, and attention requires eye movement (Russo, 1978)

Cues are signals the consumers uses to assess a product and its purchase (Olson, 1972).

Let’s consider those cues, how we present them, and how they influence choice.

Three Key Strategies for Competing in Business

Operational Excellence

CustomizationProduct leadership

Treacy & Wiersema’s Value Disciplines

Operational Excellence

Key business premise is efficiency. Have a standard or “shelf” product. Be fast in production and delivery quickly. Make it cheap. Move it fast.

Slim margins require profitability is derived on volume. Make profit by selling volume. Time is money.

Their competitive strategy is to always be the low price leader. Wal-Mart!

Operational Excellence

CustomizationProduct leadership

Customization

Key business premise is to customize offerings. Customize or adapt products to meet customer needs. Be creative, offer options and alternatives. Make it good but make it unique.

Profitability is derived on margin. Make numerous sales at reasonable margins. Customization generates profit. Unique is money.

Operational Excellence

CustomizationProduct leadership

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Product Leadership

Key business premise is new. Be first to the market with a product. Appeal to Innovators who want the newest or latest invention. Make it new. Make it good. Always be first.

Profitability is derived on margin. Selling to a smaller market, make lots on each sale. Make profit by pricing high. New means profits.

Their competitive strategy is to always be first to market with little competition.

Operational Excellence

CustomizationProduct leadership

Can a business excel in all three strategies?

Operational Excellence(low price/high turn)

CustomizationProduct leadership(new innovations)

Major in one,Minor in another.

Must decide major & minorOperational Excellence(low price/high turn)

CustomizationProduct leadership(new innovations)

Consumers pick you by the strategy you offer them!

Operational Excellence(low price/high turn)

CustomizationProduct leadership(new innovations)

Photo by Leslie Reese at Terrain (PA)

Photo by Bridget Behe at retailer in MI.

Operational Excellence

CustomizationProduct leadership

Operational Excellence

CustomizationProduct leadership

Abundance Customized

Novel

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Photo by Bridget Behe Bogie Lake Greenhouse (MI)

Abundant Displays

Large inventory

Photo by Jessica DeGraaf at Terrain (PA)

Simple Displays

Limited inventoryClean

Photo by Bridget Behe at Lululemon (OH)

Photo by Bridget Behe at Hoen’s Garden Center (OH)

Signs

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Production practicesEnergy-savingWater-savingConventionalSustainably

Price:Low ($1.49)Medium ($1.99)High ($2.49)

Plants:VegetablesHerbsAnnuals Comparison of Time to First

Fixation on Signs with Price and Production Method Positioned Left and Right of Center

OverallMean seconds (SEM)

LeftMean

seconds (SEM)

RightMean

seconds (SEM)

Price Sign Position 1.0899 (0.0375)

1.7823(0.0563)

F=432.96p<0.0001

Price Low 1.4503 a(0.0492)

F=10.52p< 0.0001

1.2204 C(0.0517)

1.7236 B(0.0592)

F=14.32p<0.0001

Medium 1.4552 a(0.0511)

1.0694 D(0.0457)

1.9801 A(0.0762)

High 1.2817 b(0.0475)

0.9604 D(0.9604)

1.7104 B(0.0678)

People see the price sign faster on the left compared to the right.People see high prices faster on the left compared to low or moderate prices.People see high and low prices faster on the right (compared to moderate prices).Put low prices high and to the left; put high prices low and to the right.

Time to first fixation by price sign position.

Comparison of Fixation Count on Signs with Price and Production Method Positioned Left and Right of Center

OverallMean count (SEM)

LeftMean count (SEM)

RightMean count (SEM)

Price Sign Position 1.28(0.08)

1.06(0.07)

F=109.61P<0.001

Price Low 1.13 b(0.07)

F=12.13p<0.001

1.23(0.08)

1.103(0.06)

F=0.79p=0.454

Medium 1.24 a(0.08)

1.37(0.09)

1.12(0.07)

High 1.13 b(0.07)

1.21(0.08)

1.05(0.07)

People look longer at moderate prices.People look the same amount of time at prices left and right (think about them similarly long).Considering whether or not it is worth it.

Fixation count by price sign location.

Operational Excellence

CustomizationProduct leadership

Pick me on price?Pick me on benefits?

The value depends on the shopper’s motivation.

Plants that create food

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Photo by Jessica DeGraaf at Molbak’s (OR) Photo by Jessica DeGraaf at Molbak’s (OR)

Photo by Jessica DeGraaf at Molbak’s (OR) Photo by Jessica DeGraaf at Terrain (PA)

This is dining!

Photo by Jessica DeGraaf at Swanson’s (WA) Photo by Jessica DeGraaf at Swanson’s (WA)

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Photos by Bridget Behe at Bordine Nursery (MI)

Pollinators

Photo by Jessica DeGraaf at Sky Nursery (WA) Photo by Jessica DeGraaf at Molbak’s (OR)

Photo by Jessica DeGraaf at Sheridans (Ontario, Canada)

Color

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Photo by Jessica DeGraaf at Swanson’s (WA)

Color BlockingSimpleEffectiveEye-catching

(notice no big price sign here)

Photo by Jessica DeGraaf at Terrain (PA)

Color Blocking

SimpleEffectiveEye-catching

Photo by Bridget Behe at Riverstreet Flowerland (MI)

Photos by Bridget Behe at Wenke’s (MI)

Photo by Bridget Behe at Garden Crossings (MI)

Photo by Bridget Behe at Koitsier’s (MI)

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Photo by Bridget Behe at Wenke’s (MI) Photo by Bridget Behe at Wenke’s (MI)

Photo by Bridget Behe at Wedel’s (MI)

Photo by Bridget Behe at Terrain (PA)

Photo by Bridget Behe at Wenke’s (MI)

Photo by Bridget Behe at Countryview (MI)

Photo by Bridget Behe at Riverstreet Flowerland (MI)

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Photo by Jessica DeGraaf at Terra Nursery (Ontario, Canada)

Color BlockingSimpleEffectiveEye-catching

Miniature, Fairy, Itty Bitties

Photo by Bridget Behe at Romence Gardens (MI)Photo by Bridget Behe at Riverstreet Flowerland (MI)

Photo by Jessica DeGraaf at Molbak’s (OR)

Show-n-sell(aka in situ)

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IntegratedInspirationalEndcaps

Photo by Bridget Behe at Wenke’s (MI)

Poster façade

Photo by Bridget Behe at Gerten’s (MN)

Photo by Jessica DeGraaf at Mullhall’s (NE)

Photo by Bridget Behe at Hillenmeyer Garden Center (KY)

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How will you make your money?

Operational Excellence(inventory turns)

Customization(tailored)

Product leadership(new innovations)

Treacy & Wiersema’s Value Disciplines

Your strategy will have customers “picking” you.You need to highlight the cues to get them to “pick” the product.

http://connect-2-consumer.com/

Pick Me! Pick Me!Getting Products from Seen to Sold

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