Platt Retail Institute: Digital Signage – Many Factors Influence In-Store Purchase Decisions
Editorial by Steven Keith Platt,
Director and Research Fellow, Platt Retail Institute
a special arrangement, presented here for discussion is an excerpt of a
current article from the Platt Retail Institute Quarterly Retail Analytics report.
has long been stated that “70 percent of purchase
decisions are made in the store.” Thinking more about this caused me to
embark on a journey to trace the accuracy of the “70 percent Rule,” and
the implications for in-store digital signage.
As it turns out, the
most often-cited support for the 70 percent Rule is a 1995 study by Dr.
J. Jeffrey Inman and Dr. Russell S. Winer. Their
research advanced a four-stage model for in-store decision-making, and
the factors and relative importance thereof on the consumer impact of unplanned
in-store purchases. From this model, the researchers performed an analysis
and ranking of the strength of influence of the noted factors.
In the following chart
we present the results, which rank from most to least the relative factors’
impact on consumer in-store purchase decision-making
This indicates that the
number of aisles shopped, trip type, and deal proneness are more important
factors influencing in-store purchase decision-making than, for example,
the use of a shopping list or a simply display. These findings are significant
when considering digital signage as an in-store medium. This is because
digital signage is unique in its ability to leverage many of these factors
into tailored messages to convert shoppers into buyers. Stated another
way, digital signage content can easily be geared to impact those factors
found to have the most effect in consumer in-store decision-making.
For instance, the most
important influence on in-store purchase decisions was found to be the
number of aisles shopped. Thus, creative content geared toward encouraging
consumers to visit more parts of the store can increase retail sales. To
illustrate, an ad that introduces, “Buy peanut butter here, and get 50
percent off jelly located in Aisle 21,” may be an effective way to augment
the number of aisles shopped. If this content is not, in fact, producing
the desired result, it can easily and quickly be altered to find the most
Retailers should run
content that most effectively impacts consumer in-store decision-making
to increase sales. A fill-in shopping trip can be converted to a more lucrative
trip by, for example, by targeting promotional messaging to areas of a
store where consumers tend to make fill-in visits, such as the milk area. Such
pinpointed messages can have an outsized influence on sales.
What do you think of the potential of in-store signage as a driver of
unplanned purchases? What are some key drivers of spontaneous purchases
and what are some ways digital signage be used to trigger those drivers?
- Many Factors Influence In-Store
Purchase Decisions – Digital Signage Is a Unique Medium that Can Have
a Significant Impact – Platt Retail Institute