More than two-thirds of packaged goods shoppers make purchase decisions within the store, where they are influenced by a variety of marketing vehicles, according to a comprehensive research study conducted by OgilvyAction, New York.
Based on approximately 6,800 shopper intercepts conducted across six retail channels in the U.S. in February-March 2008, the study found that 72.4% of shoppers make in-store purchase decisions at the category, brand or quantity level.
And more than one-fourth of those shoppers said they noticed secondary displays before making their decisions, according to the study, which was fielded outside supermarkets, mass merchants, drugstores, warehouse clubs, convenience stores and dollar stores. The study suggests that various methods of in-store marketing have a significant impact on these purchase decisions.
More importantly, the study finds that the level of in-store purchase decision varies significantly based on the product category in question and the retail channel being shopped, among other factors. That finding affirms the growing realization among marketing professionals that there is no cookie-cutter solution to effectively marketing within the retail environment.
In their exit interviews, respondents were asked what types of in-store marketing "factors" they noticed before making their purchase decisions. Their responses varied significantly based on the type of decision being made:
Secondary displays (identified as "off-location," meaning away from the shelf) were cited by 24% of shoppers who made impulsive category purchases, giving the tactic a higher recall level than product demonstration (18%), price promotion (17%), retailer recommendation (12%) or consumer promotion (11%).
Displays were recalled by a similar 25% of shoppers deciding which brand to buy. Among these shoppers, however, all other tactics were cited more often: demonstrations were highest at 31%, followed by price (28%), recommendation (26%) and consumer promotion (27%).
When determining quantity, shoppers most often remembered consumer promotion (59%), followed by retailer recommendation (58%), price (48%), demonstrations (46%) and secondary displays (36%).
The results suggest that off-shelf merchandising plays a lead role in influencing true impulse purchases -- getting shoppers to buy products for which they had not planned -- while also having a major impact on brand and quantity choice.
