Store sense: Reclaiming the four walls with - Deakin University

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Taste: try before you buy Case studies and research have revealed that perhaps the most basic form of sensory engagement - product sampling and trial in store - can offer significant benefits in terms of sales lift. Research into sampling at Costco in the US [31] highlights for example that tasting or experiencing a product via sensory engagement increases a customer’s perceptions of enjoyment, increases the propensity to impulse purchase and is effective not just for low cost food and beverage items, but for more expensive non-foods products. Yet many retailers still do not implement a coherent sampling strategy to capitalise on seasonal or promotional product opportunities to engage consumers’ senses of taste, touch, smell, sound and vision. Figure 3: Involving shoppers via demonstration Tactics and techniques Sampling has long been one of the more widely used promotional tactics among consumer packaged goods manufacturers because they can generate trial while instantly monitoring sales via a physical count of merchandise sold on the event day. In addition, in-store demonstrations are well known to be an effective means of introducing new products to customers in grocery, consumer electronics, toys and a variety of other categories. Simply put, the easiest way to induce trial and encourage repeat purchase is to literally put the product into the consumer’s hand. The feedback generated instantly in this way has helped make in-store sampling part of the integrated launch strategies for many new products and recent studies have shown this marketing technique can not only produce an uplift in sales for up to 20 weeks after the campaign but also create a `halo effect’ uplift for trial of the whole brand family of products [32] . 20
Capitalising on the power of sampling, Sample Central specialises in facilitating product trials, providing a space where brands can promote and test products in a `try before you buy’ store model. Once signed up, consumers can try out the latest and often unreleased products and take samples home for free. In return, Sample Central members complete surveys, the results of which are presented to the manufacturers, providing valuable consumer insight. But what about products you can’t taste? Consumers have varying tastes and increasingly seek personalisation unique product combinations. The car purchase process for example presents customers with the opportunity to tailor a vehicle to their individual needs, with variables including colour, interior finish and options. Mercedes Benz in New Zealand recognised an opportunity to bring this purchase process to life by developing an interactive display where consumers could see, smell and feel the real car but also create their own virtual car through a touch screen. Customers are able to build their ideal car on screen, viewing the colour choice and accessory options as part of the decision making process. Ambience – the ‘hidden’ features Subtle factors experienced through the senses - either individually or collectively - can affect our sentiment in relation to degree of relaxation, stimulation and perceived market position. According to research differing light and temperature combinations act to influence our perceptions of the retail offer, with soft or warm light tones and cool or warm temperature variables creating different perceptions in diverse product sectors [33] . It’s vital for retailers to determine how these key ambience factors are optimised in relation to their brand and product offer, by capitalising upon both academic research and industry best practice. The sensory store and competitive advantage For emerging retailers who for reasons of budget availability aren’t able to secure the most convenient locations i.e. shopping centres or popular strips, increasing the sensory and hedonic appeal of the retail environment could help overcome some of the convenience and accessibility concerns that customers may have, as well as serving to differentiate the retail offer in relation to the more accessible, but less memorable competition. US researchers investigating the potential for greater sensory appeal and differentiated service provision [34] concluded that: ‘Store managers have limited resources, and may have to make trade-offs when they allocate available resources. Our findings suggest that investments into the hedonic aspects of a store can help retailers overcome, and perhaps even exploit, the commonly acknowledged disadvantage of operating a store that lacks convenient accessibility...If a store manager is not able to select a location that is easy to access, it is possible that increasing the sensory and experiential aspects of the shopping environment could enhance shopper commitment to the store’ (p.257) This has strategic significance for the ‘new wave’ of independent niche retailers and franchise operations who are seeking to capitalise on the slowdown in mass retail markets by creating smaller and more focused market offers. In order to connect effectively with consumers who may be disaffected by the retail ‘blandscape’, developing deep skills in both consumer psychology and in innovative sensory 21
Page 1: Store Sense Reclaiming the four wal
Page 4 and 5: About the authors Danielle Barclay
Page 6 and 7: online retail sales will more than
Page 8 and 9: The youth market - ‘future-proofi
Page 10 and 11: The sensory store As the dawn of th
Page 12 and 13: What is interesting to note from th
Page 14 and 15: Image 3: Tesco’s virtual store Th
Page 16 and 17: In Australia telecommunications ret
Page 18 and 19: When the listener steps out of the
Page 22 and 23: etailing tools and technologies is
Page 24 and 25: References 1. Soars, B., Driving sa
Page 27: Contact Danielle Barclay General Ma

Store sense: Reclaiming the four walls with - Deakin University

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