454 Final

Question 1

The Wow experience

Answer 1

Needs to be memorable, you need to have an emotional connection. A shot of dopamine when you enter a memorable store

Question 2

Percentage of sales in store

Answer 2

70-80% of sales are made in-store meaning it is still the primary way to shop still, only 11% of sales are e-commerce, only 9% of consumers are happy with the in-person experience

Question 3

Assets vs Liabilities

Answer 3

If stores are assets they are something worth investing in, if they are liabilities they are near closing

Question 4

Amazon Stores

Answer 4

pure left brain, utilitarian

Question 5

How many seconds are spent looking at a food product

Answer 5

6 seconds is the average time customers spend looking at a single food product in a store

Question 6

Length of time in stores

Answer 6

21 minutes in a Walmart centre
2 1/2 minutes in a convenience store
3 feet from the customer and the shelf

Question 7

Objectives of a good store brand and store design

Answer 7

consistent with retailers brand image and strategy, store layout

Question 8

Store Layout

Answer 8

should increase traffic and promote sales

Question 9

Grid Store Layouts

Answer 9

grocery stores, drug stores, Walmart, Costco have this layout as they have so many products to display

Question 10

Race Track Layouts

Answer 10

department stores, Wilson’s

Question 11

Free-Form Layout

Answer 11

boutique style store

Question 12

The IKEA effect

Answer 12

cinnamon buns- placed near the exit by having the scent of baking by the exit it brings down the stress of payment, mirrors-placed tastefully as the brain is enticed by mirrors as you see yourself which makes you have “love for yourself”, white- the brain perceives everything through context which makes you think spotless, clean what you aspire for your home, the retail environment is the most tiring environment, is why they have their café. The IKEA effect is that you value an item more so that you build yourself, The natural path/maze has been the natural way for IKEA’s layout, given the room layouts
60% of the stuff we purchase at IKEA is unplanned

Question 13

Visual Marketing

Answer 13

is an essential part of retail marketing, if done well this increases profit
-Pay more for having your product on end caps, they peak curiosity
-Make customers say wow when they enter

Question 14

Theatrical Event

Answer 14

getting attention for window displays, creative attention getting window displays can be cheap, imagination, colour coded, interactive
-Retail spaces are part of urban landscape, there are zoning rules etc.

Question 15

Store Layouts

Answer 15

Making effective use of wall space does not mean cramming with product
-Stores are crammed as there is too much inventory and promotions, empty space is important as the more you provide the more customers linger and dwell, or the illusion of empty space hanging from the ceiling or using height, teared displays
-the open space allows customers to flow
the right hand side is more desirable, they use the race track floorplan

Question 16

Multi Level Stores

Answer 16

-in a multi level store spaces value decreases the further away it is from the door
-multilevel store place escalators so customers must walk around to get to the next level

Question 17

Demand/ Destination Area

Answer 17

is off the beaten path, such as a pharmacy or post office these customers often spend more
-complementary products should be adjacent

Question 18

Planned Strategy

Answer 18

The front end of fourth wall including seasonal items customer service counters and various vending machines, planned strategy can generate 20% of store sales in an area that generate 3%
-avoid the butt brush effect give people space to travel around the store

Question 19

How does the shopper distinguish between browsers and loyal shoppers?

Answer 19

Turn right when entering the store, the more you stay the more you buy, women shopping together are a shopping machine
Shopping on auto pilot
Shoppers actually shop in a rush
Difference between what people say and what they actually do
To help navigate use signage, or visuals

Question 20

Tressure Hunting

Answer 20

the more you see the more you discover the more you buy on your way to the product you actually need

Question 21

Costco Memberships

Answer 21

90% of Costco members renew their memberships
The longer they keep you in the store the more you buy
Costco is able to sell their inventory before they have to pay for it, they play by the golden rule of treating their supplier well and customers to make lots of money
Paco Underhill said that it is a friction free experience, the longer you stay the more you buy

Question 22

A good mall

Answer 22

tunes its environment to how customers move, and what they are seeing, adjusting to the new environment having a decompression zone and transition zone give an illusion of space if there is none

Question 23

Eye Mark Recorder

Answer 23

to discover best position for products, is in the middle at eye level

Question 24

Brain Processing Time

Answer 24

The brain can only process 7 things at a time in the grocery store

Question 25

Shopping as a hunter

Answer 25

quick as you can or gatherer; explore and take your time

Question 26

Atmospherics

Answer 26

affect purchase behaviour and influence to buy such as the lighting, ambiance which is the holistic combination of lighting, colour, scent and mood Ambience of Cabela's is a cabin feel- oudoors ish

Question 27

Importance of ambience

Answer 27

in a fancy theatre versus a violin artist playing in the subway

Question 28

Visual communications

Answer 28

signage which helps boost sales, or telling you where things are such as directional signage. Visual communications, coordinate graphics with the stores image, inform the customer, create theatrical effects, visual communications, make merchandise more desirable

Question 29

Creating a sense of theatre for customers

Answer 29

retailers outperform competitors who do not