why we buy
This is an old book published in 1999 by Paco Underhill, an environmental psychologist though he is known more as retail guru. This book highlights key points that affect consumers behaviors when they go for place of purchase, which are vital for the success of every retail and also companies which have products in modern trade. Though there are criticisms that this book is out of dated, the findings in here personally I feel still can be adaptable in this era`. With simple and sense of humor words, this book is found interesting and easy to read.
The key points of this book are:
Conversion rate of customers: what is the percentage of customers whom go to store and buy? For a conventional supermarket the rate is high but for others like musical instrument that rate is lower
Time customers spend:
+ Cosmetics: averagely 2 mins for non-buyers and 30s for buyers (=> they don’t prefer to take advice from sales consultant? )
+ Electric store: non-buyers 5 mins, buyers 9 mins
+ Toy store: buyer 17 mins, non buyers 10 mins (=> yes this is true, I spend lots of time in toy store when I have to buy gifts to my cousins/ niece because it reminds me of my childhood and I have to consider which will suit them) The more time customers spend in shop, the more likely they will spend more => increase customers interaction with staff, the ambiance in store (slow, relaxing music)
Transition zone: customers need time (atleast 5-10s) to adjust to new environment with their 5 senses: smell, hear, see,… => if you put things right in front of the front door, they will ignore, if there are staff jump into customers asking if you need help, they also ignore.
=> advertising upfront doesn’t work, it is very costly to companies to advertise at the entrance of retail but the fact it that customers they just care how to got into the shop
=> products pile up (i.e. discounted items) to slow down customers in transition zone is a good idea
The bigger the basket, the more likely
The key points of this book are:
Conversion rate of customers: what is the percentage of customers whom go to store and buy? For a conventional supermarket the rate is high but for others like musical instrument that rate is lower
Time customers spend:
+ Cosmetics: averagely 2 mins for non-buyers and 30s for buyers (=> they don’t prefer to take advice from sales consultant? )
+ Electric store: non-buyers 5 mins, buyers 9 mins
+ Toy store: buyer 17 mins, non buyers 10 mins (=> yes this is true, I spend lots of time in toy store when I have to buy gifts to my cousins/ niece because it reminds me of my childhood and I have to consider which will suit them) The more time customers spend in shop, the more likely they will spend more => increase customers interaction with staff, the ambiance in store (slow, relaxing music)
Transition zone: customers need time (atleast 5-10s) to adjust to new environment with their 5 senses: smell, hear, see,… => if you put things right in front of the front door, they will ignore, if there are staff jump into customers asking if you need help, they also ignore.
=> advertising upfront doesn’t work, it is very costly to companies to advertise at the entrance of retail but the fact it that customers they just care how to got into the shop
=> products pile up (i.e. discounted items) to slow down customers in transition zone is a good idea
The bigger the basket, the more likely