You’ve seen this in action: those grocery store end caps that advertise an amazing deal on gummy bears. Do you need gummy bears? Probably not. It doesn’t matter; low prices get you in the mood to spend.
This is the technique of pricing items really cheap in the front display aisles at retail and grocery stores to make your customer brain excited about saving a bunch of money. It’s a psychological strategy, let your customer spending money on stuff they had no intention of buying but simply can’t pass up as the deal is just too good. Irresistible Price totally explains the Target “we just need one thing” phenomenon.
Success Grocery stores never design their layouts haphazardly—a whole heap of psychology goes into it. For example, ever feel like you have to walk miles to get to the dairy fridge? That’s because you practically do.
Dairy departments are almost invariably located as far from the entrance as possible, ensuring that customers—most of whom will have at least one dairy item on their lists—will have to walk the length of the store, passing a wealth of tempting products, en route to the milk, eggs, cheese, and yogurt.
It’s the same idea as the “Boomerang Effect.” With this strategy, grocers place popular items and brands in the middle of store aisles so that customers have to walk past other, unneeded items to reach them, no matter which direction they’re coming from. In other words, grocery stores make it purposely difficult to simply get in and out with what you need. They do everything they can to lure you with their products.
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USD9.99 Not USD10
Charm pricing is another notorious grocery store trick.
Whenever customers see a product priced at $29.99 or $9.98, you can always attempting to ‘charm’ your customer’s brain by marking prices just below a round number .Because our brains are trained to read from left to right, the first digit is the one that sticks in our head and the number we use to decide if the ‘price is right.’ This phenomena is known as the ‘left-digit effect’ and studies have shown that it absolutely works and has a big impact on our buying decisions.
Placing expensive items at eye level
Always place your most expensive items at eye level and place the bargain buys and generic brands on the bottom shelves. This helps guide you toward the pricier items, since they’re literally right in front of your customer face.
Also don’t forget your younger customer. When they walk down the cereal aisle and make them notice their favorite products which are placed on lower shelves. In this case, stores can catch the eyes of younger consumers. Research found a link between eye contact (in this case, between children and spokes-characters) and consumers’ positive feelings toward a product.
Music seems harmless enough, but it’s another highly effective tool for getting customers to spend more. A lot of study found that sales increase and people spend more time shopping in stores playing music. The type of music matters, though. The study reported: The tempo of instrumental background music can significantly influence both the pace of in-store traffic flow and the daily gross sales volume purchased by customers, at least in some situations. In this study the average gross sales increased from $12,112.35 for the fast tempo music to $16,740.23 for the slow tempo music. This is an average increase of $4,627.39 per day, or a 38.2% increase in sales volume.
Of course, those results only apply to that specific study, but the point is: There’s research that shows music can indeed influence shopping behavior. And you can use this to your advantage.