Tuesday, October 1, 2013

How Groceries Stores Manipulate You

How Groceries Stores Manipulate You
Written By :  Courtney Van Dusen 

Have you every realized the design of the grocery store? Wonder why the soda brands are next to the chips, or why gum and candy bars are placed right next to the checkout area? These are only a few of the many tactics grocery stores use in order to persuade consumers to buy more than what they intended to.
When checking out items, how many times do children ask their parents for a Kit Kat bar, or any kind of candy that lies right in front their faces? The items placed in front of the counter are called impulse items, these are the things people do not need but feel as if, “Oh it is only a dollar or so, nothing hurt”, but these little impulses build into a hefty profit for the store. Impulse buys are what grocery stores go off of when designing and placing specific items in to it. Another example is the placement of flowers or the bakery in the front of some stores, by using your senses  of sight (seeing the colorful flowers) and smell (fresh baked bread and cookies), this allows for the consumer to at least think about buying these  delectable products placed oh so perfectly in front of them.



Other procedures used are ones that include two different products, but they are often consumed together. Soda and chips are a great example for this.  “A team of researchers, including Coleman Chair Professor in Marketing Venkatesh Shankar” looked as the sales of chips and soda over 2.5 years and within 180 different stores. After moving the chips an aisle closer toward the soda, both sales increased by 0.7 percent and after moving the item farther away from the soda aisle, the sales decreased about 1.4 percent. Lastly, after placing the chips and the sodas in the same aisle, and facing each other, sales of both items increased to a 9.2 percent. These percents prove that the grocery store, and how they present the produce, can manipulate consumers into buying more than needed. Also, these increases in profit are common with a price-cut promotion just without any loss in profit, so basically, it is unnecessary to cut any prices on any product or service in order for customers to buy more.
This information can not only help profits for stores but manufactures for all of their revenues. Expressing how integrated marketing of certain items, such as soda and chips can increase sales leading to certain companies to own products in multiple categories. A company that is familiar to most and follows by this idea is PepsiCo, owner of Pepsi beverages and Frito-Lays snacks.
The typical factors that influence the purchasing of products are the demand by the consumers and the supply of the company, but the effect of placements and sense stimulants are big causes as well. By placing impulse and commonly purchased items in specific areas of the grocery store, sales are able to increase, and consumers will leave with more than proposed.









Works Cited
"Five Ways Grocery Stores Try to Trick You | Rodale News." Rodale News. N.p., n.d. Web. 1 Oct. 2013. <http://rodalenews.com/supermarkets-and-healthy-food>.
Houston, Chrystal. "   Store shelf strategy | Mays Business Online." Mays Business Online. N.p., n.d. Web. 1 Oct. 2013. <http://Maysbusiness.tamu.edu/index.php/store-shelf-strategy/>.


4 comments:

  1. Courtney, the first paragraph of your writing is a good starting point but seems a little jumbled with sentence structure. Some thoughts seem cut off, lingering in sentences that seemed overdrawn. In terms of the entire post, you have some great points that you are able to elaborate with but with analysis leads to some loss of direction. Try to stay focused with what the sentence/paragraph is addressing and smoothly transition to the next topic. What you said is true, I can't say how many times I bought that extra candy bar or that pack of gum while standing in line for the register. It's a common tactic that doesn't seem like it's going to fade away any time soon. Your evidence related to the topic and you were able to appropriately incorporate them into your writing to strengthen your argument. You are a strong writer but as everyone else sometimes does, there are a few structural things that you need to be careful about so that you don't confuse the reader and possibly alter your message as a whole.

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    Replies
    1. Sarah, please keep in mind that I am looking for you to add to the economic debate, not critique the strength of the writing.

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  2. This is a very interesting topic involving economics. I think it's clever that grocery stores strategically place their products in order to catch the attention of their customers. I believe that this tactic is very beneficial to grocery stores and probably contributes to at least half of their sales. Although it may seem annoying to the customers, these tactics help maintain these grocery stores and keep the economy flowing.

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  3. This is a very interesting topic. The introduction was really good at and all of the examples worked very good at relating this topic to everyone. The companies and stores are smart to use this information and I definitely would use these statistics to increase my revenue as well if I were one of those companies. Some of the companies can gain too much power by using these technique, like you said with Pepsi-Co. Even between specific products companies can have a very large amount of control.

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