Instore marketing

1
In-store marketing

• Jens NordfältAssistant Professor, Stockholm
  School of EconomicsDean, Nordic School of Retail
  ManagementCEO, Hakon Swenson Research Foundation

2
Interference from memory
Wendys
McDonalds
Joes Deli
Subway
0,91 0,70 0,42 0,21
No activation Direct activation Indirect
activation
0,89 0,77 0,94 0,61
0,94 0,89 0,83 0,17
HAMBURGERS
SANDWICHES
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Is there a decision process?
Mean 0 pckg 1 pckg No. of brands examined
1,19 72 No. of brands picked up
1,10 83 No. of comparisons between brands
0,03 95No. of shelf tags examined 0,06
89 Time in aisle 13,16 secs.
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Traditional decision-making model
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Criticism towards the model

• Will the consumer go through all the steps?
  (Day)
• Do the steps necessarily come in that order?
  (Wilkie)
• How does it explain impulse purchases? (Wilkie)
• We purchase several different brands!
  (Laaksonen)
• We have experience, where does it comer in?
  (Hoyer)

• Limitations of the STM (Miller)
• 30 seconds
• 7 2 information units

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Visual memory
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Visual Memory
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Our limited consciousness
Outer information
Inner information
Perceptual fluency
Conceptual fluency
STM
The perception could take as long as half a
second Perceptual and conceptual fluency key
holes
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Psychological conditions for in-store
decision-making

• We look at more than we can see.
• The eyes do not want to see.
• We see with our memory.
• There is a constant struggle between the eye and
  the mind.
• We need help to understand what we understand.

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We look at more than we can see
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Inattentional blindness
DEPARTMENT
OBSERVATIONS
RECOGNITIONS
SHARE
Energy drinks 27 1 3,70
Throat pastilles 42 6 14,29
Coffee 112 3 2,68
Rice 59 1 1,69
Juice 99 0 0,00
Juice 99 0 0,00
339 total 11 total 3,24 average
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The eye finds where the eye seeks
DEPARTMENT
SHARE
OBSERVATIONS
RECOGNITIONS
Energy drinks 27 1 3,70
Throat pastilles 42 6 14,29
Throat pastilles 42 6 14,29
Coffee 112 3 2,68
Rice 59 1 1,69
Juice 99 0 0,00
339 total 11 total 3,24 average
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The various senses impact on the mind
83
Sense
Capacity (bits/second)
of all information reaching brain
Seeing 2 x 3 000 000 83 Hearing 2 x 20
000 11 Scent 2 000 - 200 000 1 Tasting 1
0 100 3,5 Feeling (touch) 10 1,5
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Effects of special displays

• The Dillon study (734 different displays of 360
  different products in five stores. Sales
  increases
• 473 (no discount)
• 808 (with discount)
• The A P study
• 420 (no feature)
• 629 (with feature)

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Effects of special displays
?1/?2
?2
Dogfood Detergent Sallad oil Kitchen
paper Freezer bag Bleach Mayonnaise Softener
312 1192 902 321 248 331 683 580
0.88 1.09 0.77 1.43 1.96 0.56 1.56 0.74
?1 Sales change in category
?2 Sales change for the displayed brand
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How the customers analyze the assortment
PIK
NUX
CAM
ZOG
ZOG
CAM
PIK
NUX
PIK
NUX
ZOG
CAM
ZOG
NUX
CAM
PIK
(Hoch, Bradlow Wansink, 1999)
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How the customers analyze the assortment
(Hoch, Bradlow Wansink, 1999)
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How the customers analyze the assortment
CAM
NUX
ZOG
CAM
CAM
CAM
NUX
ZOG
CAM
PIK
PIK
NUX
PIK
ZOG
NUX
PIK
(Hoch, Bradlow Wansink, 1999)
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How the customers analyze the assortment
PIK
CAM
NUX
ZOG
CAM
CAM
NUX
ZOG
PIK
PIK
ZOG
PIK
PIK
ZOG
NUX
PIK
(Hoch, Bradlow Wansink, 1999)
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How the customers analyze the assortment
CAM
ZOG
CAM
CAM
CAM
NUX
ZOG
ZOG
NUX
PIK
PIK
ZOG
(Hoch, Bradlow Wansink, 1999)
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How the customers analyze the assortment
CAM
NUX
CAM
NUX
NUX
ZOG
ZOG
PIK
ZOG
NUX
PIK
PIK
CAM
CAM
(Hoch, Bradlow Wansink, 1999)
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How the customers analyze the assortment
(Hoch, Bradlow Wansink, 1999)
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How the customers analyze the assortment

• Whats most important?
• Color
• Shape
• Text

(Hoch, Bradlow Wansink, 1999)
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Between groups t-test for bottom-up and
top-down explanations for recognition of the
ad (Grouping variable Recognition of ad yes/no)
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Capture attention with colors
Unorganized display Organized display P
N Looks Stops Buys
692 100 409 100
197 28,5 167 40,8 ,000
22 3,2 23 5,6 ,048
8 1,2 11 2,7 ,059
End-cap-display
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Forced exposure
Unorganized display Organized display P
241 100 360 100 129 53,5 161 44,7
,034 41 17,0 19 5,3 ,000 30 12,4
10 2,8 ,000
N Looks Stops Buys
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• The package is the key source of information for
  shoppers in store.

(Sorensen, forthcoming)
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• Jens Nordfält
• Add Contact details such as
• - jens.nordfalt_at_hhs.se
• - www.hakonswensonstiftelsen.se
• - www.hhs.se