Friday, September 23, 2011

Impulse Purchase Zone – the “cash wrap”

The small area that surrounds the checkout area of most retail establishments is an amazing place, well deserving of further discussion.  I often feel sorry for the cashier that has to deal with me as I pay only partial attention while sifting through the myriad of “stuff” that I could throw in last minute before closing out my purchase.  Anything from a soda, candy bar, magazine, batteries or even a lint brush are game and each worth considering.  Some items are in the “hey that’s pretty cool” category, while others are in the “hey I forgot that I just ran out of those” realm.  The barrage of color and range of products seems to put one’s senses into momentary shock while conducting a brief and often subconscious scan of all the options available.


I have several observations about this unique area in regard to impulse buying.   The basic definition of an “impulse purchase” is one that is made on the spot and without prior planning.  An example of this would be if you were to go to the local grocery store to buy eggs and milk, but on the way out notice a pack of gum and magazine that look appealing and decide to purchase them also.  Below are several areas that effective merchandisers key in on to make the most of the spontaneous nature that seems to be built into each of us.

Product involvement level:
Items displayed in an effective cash wrap area require little thought from potential purchasers.  Although there may be several items or aspects of items worth comparing, such as color, size, or flavor, the type of products merchandised are typically not ones that a normal person would spend too much emotional energy choosing between.

Pricing:
For the most part, low priced items are found in this area.  Often playing off of an element of relativity, lower priced items are not a big deal in relation to the more expensive priced items that were the main purpose of the shopping visit.  A $0.99 pack of gum and $2.99 “Monster” energy drink are perceived to be small in comparison to a $140.00 grocery purchase or $60.00 gasoline fill up.

Product Mix:
The types of products that typically fill this area are ones with mass appeal.  They are often (but not always) gender neutral and applicable to a wide range of shoppers. 

Product Placement:
Although candy is enjoyed by people of all ages, placing the candy down low where children can see (and touch…which is sometimes just as important) is a wise move on the retailer’s part, as this often leads the well-known tug of the pant leg followed by the “Mommy mommy (or daddy daddy)….can I have it?!”.   This is just one example of how the probability of purchase (or at least consideration for purchase) can be optimized by strategic product placement.  Complementary products are often in close proximity to one another (known as cross merchandising) to entice the purchase of a related item.


These are just a handful of observations about an area that has always fascinated me.  I know that I often fall victim to tricks of skilled merchandisers in the checkout area, but appreciate all of the intricacies that are behind the scenes.  An entire career could be spent in pursuit of perfecting the art and science that surrounds this relatively small physical space within a retail outlet.


-by T.J. Dennis-

4 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. Do you ever find yourself selecting items from the impulse purchase zone that are not supposed to be there?

    I have learned over time to purposefully shop in the impulse zone knowing that I am going to get some gum and waiting until I get there rather than sifting through the gum isle for the right pack. There are things that I wait to buy until I am ready for checkout. I don’t usually fall prey to the impulse zone’s intended purpose.

    That being said, the items that often get me are the ones that are not supposed to be in the impulse zone: the new DVD that someone left behind at the last minute because they could not afford it or the box of kid’s cereal that mom put back because she did not realize until checkout that her child had smuggled it away in the bottom of the grocery cart.

    There are numerous things that people leave behind at the last minute in the impulse zone which are not supposed to be there, and these are the ones that seem to allure me the most. I don’t need this month’s copy of In Style but what I do need is an extra Star Wars t-shirt and a package of Oreos.

    ReplyDelete
  3. It’s interesting how the checkout seems to be the ultimate test of parenting skills. I have seen more toddler meltdowns over a bag of Funions than I would like to remember. It’s so uncomfortable to watch as a parent is totally embarrassed. On one hand they don’t want to be the parent seen yelling at their kid, but they also don’t want to teach their kids that an embarrassing spectacle is all it takes to get their way. I never know how to react and I’ve felt more than once that what I thought was a reassuring smile was seen as condescending. Clearly, parenting is not for the faint of heart.
    Being from Florida, I am a loyal Publix fan. What I think is interesting is that Publix always has one or two “kid-friendly” checkout lanes. Instead of trashy magazines, sodas and Kit-Kats, these aisles had healthy snacks, juice boxes, coloring books and parenting magazines. They’re all items parents don’t mind their kids reaching for and for the most part, items parents actually need. I also don’t see a 5 year old having a meltdown because their mom wouldn’t buy them SunMaid Raisins.
    I don’t know how many fewer packs of Trident they sell, but this is just one more reason I find “Shopping is a Pleasure” at Publix. Not only are there fewer screaming kids, but parents with young children tend to gravitate towards these aisles and I can take my impatient self down to the regular old checkouts where I can get my Cosmo and Twix bar (Funion meltdown-free).

    ReplyDelete
  4. TJ, what’s interesting is that I wrote a blog on the Power of the Child that touches on some of your observations, particularly your latter points. Marketers are a clever bunch indeed; some might even say manipulative. They do deserve some credit, though, for their ability to influence the decision making process, especially as it relates to impulse purchases. I agree with you. Oftentimes items closest to the cash register are smaller and inexpensive. These characteristics often make consumers rationalize purchases from these locations, as these products are perceived to be less significant and not a real hindrance to a customer’s wallet or purse. The wide variety causes the unassuming customer to go “wide-eyed” at the thought of all the selections they could soon own, all for a low price, even if not originally on their mental or physical grocery lists. The allure is strengthened further because of the closeness to the cash register. With a simple “yes,” the treat can be purchased without too much consideration of the consequences of a guilty pleasure. What may seem a simple act to the consumer is actually a well-planned, calculated strategy on the part of retailers and marketers alike. Don’t feel bad, though. I’ve fallen victim to these “impulse buying traps,” too. The treats were worth it though!

    D.J. Vaughn

    ReplyDelete