Grocers would like shoppers to leave the store with more than just the items on the shopping list when customers arrive.
From the choice of music, the layout of the store and product placement, the store is designed to get consumers to spend more.
Consumers Council of Canada asked three experts in consumer behaviour to help explain why grocers choose to do certain things in their stores. The responses are from Kristen Duke, Associate Professor of Marketing at University of Toronto Rotman School of Management, Sylvain Charlebois, Professor, Director Agri-Food Analytics Lab, Dalhousie University and JoAndrea Hoegg, Professor, Marketing and Behavioural Science Division, UBC Sauder School of Business
Q: Why is produce usually the first thing you see?
A: They want to show they’re actually selling stuff you should be eating, and it just looks good. It’s very colourful. Aesthetically, it’s pleasing to walk into a grocery store to see the piles of apples, the grapes, etc. We will often also see the ready-to-eat counter, or something that is cooking so smells stimulate your senses to become more hungry. (Charlebois)
Q: Why is milk located at the back of the store?
A: If you put milk at the front of the store, people who don’t plan to purchase anything else will walk in, grab the milk, and go. But if you put it in the very back, now people have to wander through. When they’re wandering through those aisles, they might be noticing things and be tempted to make an impulse purchase. (Duke)
Q: How do grocers determine what products go on which shelf and aisle?
A: Think of a grocery store like real estate: end-of-aisle specials – you pay for that. You pay for eye-level shelves as well. Spaces in the store are sold to suppliers. Companies will pay a premium to be in a certain place. End-of-aisle specials are never specials, they’re attention grabbers. (Charlebois)
Q: Why do many items’ prices end in $xx.99 ?
A: People tend to focus on that left most digit. It’s natural for many of us, especially in North America, to read from left to right, and so the first thing we see can end up being sort of an anchor for us. The number 2 in $2.99 feels much closer to 2 than to 3, even though it’s only a cent away from 3. (Duke)
Q: How do they decide what music is played in the store?
A: We know the pace of the music can change how quickly we walk through a store. If you play fast-tempo music, it makes people move around the store very quickly, and might make them exit faster. We find stores tend to play more relaxed music that is designed for you to wander the aisles. (Duke)
Q: How long does it take to make a purchase?
A: The research is old, but I think it’s reliable. When we’re in a familiar store, it takes about 13 seconds to make a purchase. It’s very, very fast. We know what we’re buying. We get in and we get out. (Hoegg)
Q: Does buying in higher quantities really save consumers money?
A: It can save you money if it is something you are going to use. If you buy it regularly, then absolutely. If it is something you are going to buy, but you’re not going to finish using – you bought it simply because it was on sale and it’s going to expire before you use it – then no. (Hoegg)
Q: What impact does signage that marks ‘sales’ have?
A: If the item is like a luxury or something you might not normally buy, then that sales sign is going to attract attention, and hopefully make you more likely to purchase it, if it’s something that’s useful to you. But if it’s something you regularly buy, and there is a sale sign, what’s going to happen is it’s going to make you buy more of it. (Hoegg)
Q: Which products have the highest margins?
A: Everything fresh, by far. Margins are probably 40 to 50% in meat, and typically it’s the same for produce. (Charlebois)
A longer version of this article appeared in the August 2024 Think Consumers.