Posts Tagged ‘Merchandising’

“Food Fight in the Produce Aisle”

Posted by Joe Cannon

This Wall Street Journal article “Food Fight in the Produce Aisle” (October 20, 2011 – non-subscribers may have to click here) describes the growing popularity of the produce section.  Consumers perceive all products sold there — even packaged goods — as fresher and of higher quality when they are placed in the produce section.  So you are seeing everything from corn chips to V8 vegetable juice vying for that premium shelf position next to the tomatoes and bananas.  You might show the video in class or simply describe the phenomenon and ask students the advantages and disadvantages from a retailer’s perspective.  An interactive graphic and article describe other grocery store merchandising tactics — like placing bananas in the back to encourage shoppers to move through the produce section and placing milk in a cooler at the front of the store to compete with convenience stores.  The latter example is interesting, since milk has traditionally been placed at the back of the store so customers would pick up additional items along the way.  The article outlines concerns for retailers — of course they might also be able to charge for this premium space.  The 3:54 video is “talking heads” but includes many highlights from the article.

“Grocery Stores Using Subliminal (?) Marketing”

Posted by Joe Cannon

I am not sure this really counts as subliminal — but that is the term that ABC News used — so I have an excuse for being sensationalistic as well.  Technically subliminal means “a sensory stimuli below and individual’s absolute threshold for conscious perception” (see Wikipedia – Subliminal stimuli).  The subject, and its effects, remain controversial — see the Wikipedia link for more information.  I digress, no matter the title, our students will enjoy the topic.

The video below (direct link to video:  “Grocery Stores Using Subliminal Marketing,” ABC News, September 23, 2011) addresses how supermarkets merchandise and display products to influence consumer choice.  People are typically conscious of these stimuli — but may not recognize the role of each in getting us to open our wallet or pocketbook a bit wider. I used this video today as an example of psychological variables that affect  consumer behavior.  The video will also work for retailing or promotion for point-of-purchase.. The video is only 2:08, but you do have to put up with a :15 advertisement at the start, so you might want to cue it up before class.

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“Warehouse clubs scream ‘bargain!’”

Posted by Joe Cannon

costco_logoI just listened to an interesting report on American Public Media’s (radio) Marketplace Money show – “Warehouse clubs scream ‘bargain!‘” Click through to listen – or simply read the text of this story. It highlights how warehouse clubs understanding of consumer behavior drives their marketing strategy.  Would probably provide a good example in discussing retail or consumer behavior.