Retailers may be engaged in markdown mania but research from OgilvyAction concludes that if they really want to move product they need to get it out on secondary displays.
The agency's research that included interviews with 6,000 shoppers across multiple retail channels in February and March found that 29 percent of consumers made unplanned purchases when going to a store. Of those, 24 percent were influenced by displays to purchase while 18 percent cited in-store sampling and 17 percent mentioned a price promotion.
Thirty-nine percent of shoppers said they entered a store with plans to purchase from a category but not a specific product. Thirty-one percent of those consumers were influenced to buy by sampling, 28 percent by price promotion and 27 percent by some other form of promotion.
Impulse purchases using displays were most likely to occur in convenience stores where just below 50 percent acknowledged buying a product they had not intended to when entering the store.
While the research points to the power of displays, the reality is that secondary displays are often stocked with discounted products.
"We know price promotion will always be in the picture for any shopper," Jeff Froud, senior strategic planner with OgilvyAction, told AdAge.com. "They will always say they don't want to feel like they're getting ripped off."
Discussion Questions: Do retailers need to change display strategies in light of the economy and mood of consumers? Where do you see challenges and opportunities for retailers in the use of in-store displays?