A new university study around drivers of unplanned purchases found ample opportunity for grocers to increase impulsive buys or at least drive higher-margin ones.
The findings were based on in-store video tracking to observe grocery shopping from the shopper's point-of-view in conjunction with an entrance survey of purchase intentions. The study found:
- Unplanned purchases tend to complement planned purchases. For example, a shopper who plans to purchase cheese is more likely to consider an unplanned purchase of sour cream.
- Shoppers who reference coupons or in-store circulars or interact with the store staff when considering a product that's not on their shopping list are more likely to purchase the product.
- Shoppers who stand closer to the shelf are more likely to make unplanned purchases.
- Promotions are effective in convincing consumers to consider a product, but they do not significantly affect a consumer's decision to purchase that product.
- Consumers typically leave room for unplanned purchases in their mental budgets.
In a statement, Sam Hui of the NYU Stern School of Business and a co-author of the study cited a number of ways retailers could further convert shoppers from passive browsers to buyers.
"One tactic is to position categories with high-profit margins closer to the store entrance, so shoppers see the items before their budget for 'extras' is depleted," said Prof. Hui. "Another strategy for store managers is to distribute store circulars and/or coupons, not only at the entrance, but also at different in-store locations, so that shoppers are more likely to take advantage of them. Offering product samples or highlighting certain store displays that encourage shoppers to stand physically closer to the shelf is another good tactic."
Co-authors of the study included Jeffrey Inman at the University of Pittsburgh's Katz Graduate School of Business, Yanliu Huang at Drexel University's LeBow College of Business and Jacob Suher at the University of Texas at Austin.
- Attention Store Managers: New Study Reveals Secrets to Increasing Unplanned Purchases - NYU Stern School of Business
- Deconstructing the "First Moment of Truth": Understanding Unplanned Consideration and Purchase Conversion Using In-Store Video Tracking - Journal of Marketing Research (sub. required)