Observation in Retail Settings

1
Observation in Retail Settings

• Wrapping Up Underhills Book and Other
  Observation Issues

2
Discuss

• What does in situ mean?
• Why do retailers need to study consumers in situ?

3
Discuss

• What can retailers learn from these two
  observations
• The butt brush effect
• Dog treats are often purchased by kids and senior
  citizens

4
Discuss

• What is environmental psychology?
• Why are marketers interested in environmental
  psychology?

5
Discuss

• What does Underhill think is wrong with looking
  at the cash register tape as a rich source of
  store data?

6
Discuss

• What is a density check?
• Why should density checks be examined?

7
Discuss

• Underhill (p. 31) says we are not opening stores
  in the U.S. any more to serve new markets.
  Instead, we are trying to steal someone elses
  customers.
• Why does he believe that?

8
Discuss

• What is a conversion rate?
• Why do we care?

9
Discuss

• What is an interception rate?
• Why do we care?

10
Mechanics of Shopping

• In the Mechanics of Shopping section of the
  book, Underhill encourages retailers to ask Is
  the Shopping Experience rewarding or punishing?
• How can we determine that?

11
Consumer Logistics

• The speed and ease with which consumers move
  through the retail space and shopping process
• Consider signage, lighting, aisle width, and
  parking

12
Underhills take on Consumer logistics

• What does he say about
• The transition zone?
• Cart or no cart?
• Impulse buying and browsing?
• The direction most shoppers move?

13
Implications for Consumer Logistics

• Retailers should consider perceived accessibility
  for all consumers

14
Other Mechanics Issues

• End caps
• Merchandising
• Chairs
• Signage
• Have to see sign in situ to know whether in
  works
• Dressing rooms

15
Discuss

• What do you think of the mechanics of the Wyoming
  Union? Washakie? Other places on campus? In
  town?

16
Waiting Time

• Underhill believes waiting time is one of the
  single most important issues in customer
  experience management
• How do you get demand to match capacity and vice
  versa?
• Telephone, Disney, physicians office,
  mail-order, retail store

17
What customers expect

• less leisure time
• more focus on fast pace
• fewer hours with family
• more time needed at work
• greater pressure on time than ever
• This makes us tolerate waiting very poorly and
  organizations that make us wait are not strong

18
Common Ways of Dealing With Waiting Times

• Employ operational logic to reduce wait
• Establish a reservation process
• Differentiate waiting customers
• Make waiting fun, or at least tolerable

19
Basic Principles of Making Waiting Fun/Tolerable
1

• Unoccupied time feels longer than occupied time
• Preprocess waits feel longer than in-process
  waits
• Anxiety makes waits seem longer
• Uncertain waits are longer than known, finite
  waits

20
Basic Principles of Making Waiting Fun/Tolerable
2

• Unexplained waits are longer than explained waits
• Unfair waits are longer than equitable waits
• The more valuable the service, the longer the
  customer will wait
• Solo waits feel longer than group waits

21
Retail Facilities Are Experienced Differently by
Different People At Different Times 1

• Men versus women
• Today
• 10 years from now
• How do I involve both in the experience?
• The career woman
• The home improvement woman

22
Retail Facilities Are Experienced Differently by
Different People At Different Times 2

• The older consumer
• 1/5 of Americans will be over 65 by 2025
• Disability, eye sight
• Purchase pals
• Kids
• Parents with kids want to shop
• Create loyalty early
• Safety

23
Stimulating the Senses

• Why is touch important? What do they need to
  touch/not touch?
• How important is visual information? What
  happens when they have limited or no vision?
• Taste? Sounds? Smells?
• What senses are important at Washakie? Why?

24
Underhill on Management

• Managing the Experience requires us to focus on
  the interrelationship between
• Design
• Merchandising
• Operations
• Schmitts approach is more thorough on the
  managerial side, while Underhill is more thorough
  on the research/observation side.

25
Discuss

• What did you like about this book?
• What did you dislike about this book?