Shopper Culture

Myth or Truth? Don’t Grocery Shop on an Empty Stomach

With the proliferate amount of weight loss advice circulating in the media today it can be confusing for shoppers to know what to believe. “Don’t skip meals!”, “Hunger may actually be thirst!”, “Don’t grocery shop on an empty stomach!” — we often hear these age-old pieces of advice, but are any of them actually true?

Two researchers at Cornell University decided to put the old adage “don’t grocery shop on an empty stomach” to the test. They wanted to know, is it actually detrimental to those looking to cut calories and loose weight?

They conducted a study with two different shopper groups, one group had not eaten for five hours and the other group ate a snack right before grocery shopping. They found that both groups bought a comparable quantity of groceries, however those who shopped while hungry did indeed pick more high-calorie foods. This helps explain the compulsion we often have around the checkout section of the store. At the end of our shopping trip we are at our weakest (tired and hungry) and have one more chance to reach for a calorie dense, pick-me-up snack such as candy or soda. Even if you have a shopping list to help keep your trip on task, chances are you will deviate from it to satisfy your rumbling stomach. 

Article Source: New York Times 

Photo Source: ABC News 

 

Mother's Day: Celebrating All the Mothers in Your Life

Mother’s Day has traditionally been thought of as a day to celebrate your mom. But increasingly, consumers are seeing the day as a chance to show their appreciation for all the special women in their lives who are mothers. Mothercare, a UK-based retailer, created a Facebook video showcasing the average mom’s point of view of the special day:

“It is a day set aside to dedicate and honor the women that give us so much love.”

This expansion of celebration is evident in shopper behavior and spending. According to Forbes, 23.5 percent of Mother’s Day spending will be on wives, 10.5 percent on daughters, 8.5 percent on grandmothers, and 8.2 percent on sisters. 

Retail is responding to this shift. For instance, while Ann Taylor Loft touts its Mother’s Day Must-Haves, they also remind shoppers of all the special women in their lives. As greeting cards are a common gift, retailers are expanding their collection to offer options for different recipients (e.g., aunt, sister, goddaughter). As marketers, we have to consider for whom shoppers are buying when we message around Mother’s Day.

 

Contributed by Jillian Kyle and Molly Paskal

Turning Up The Lights May Turn Up Sales

I recently came across an interesting study released on the Social Science Research Network by an academic team led by Kyle B. Murray of the University of Alberta in Canada. The study reports that the weather affects shoppers' moods and ultimately their spending habits. For instance, shoppers that were questioned while being exposed to a sun lamp were willing to pay more (21% to 56% more for some items, in fact) compared to shoppers that were questioned in settings without a sun lamp.

Now, this got me thinking. How does this play out in the retail setting? We cannot control the weather but we can control the retail environment. Perhaps retailers can boost sales by bringing "good weather" inside. The research team susggests that installing bright lighting may help brighten shoppers' temperament (and spending). Or to push that thinking even further, perhaps retailers could install large windows or fake good weather inside with natural elements. We see nods to nature in retail settings today from soft curves to organic materials and bright colors. In fact, the Retail Design Institute noted that biomimicry was a major trend in retail design this past year during their presentation at GlobalShop. Another trend; monochromatic. We see a lot of all white spaces. It really helps brighten the room and make the product pop.

So, in a world of retail renovation and innovation, consider what you could do to bring the "good weather" indoors. It may boost your sales.

Photo Source: Retail Design Institute

Value Is in the Retailer

While I was recently on shopalongs spanning different CPG categories with female shoppers, there was one universal finding: value was associated with the retailer more than with the actual product. In marketing, value is defined as what you get for what you pay. However, when shopping certain categories, such as diapers or laundry detergent, many shoppers didn’t want to sacrifice performance to pay less. In those instances, it was all about where they chose to shop. They shopped at Target to feel good about receiving a free $5 Gift Card, or went to Walmart believing they’d find good prices on the brands they love, or bought their diapers from www.diapers.com to receive free shipping and five percent back. Value for these women was a product of the store and, therefore, factored less into their brand decision. It’s important for us to understand how different shoppers define value so we can overcome purchase barriers and effectively close the sale.  

Photo Source: www.allthingstarget.com

New Shopper Insights for Download: Integer's Latest Conference Presentations

Hungry for some fresh insights about the current state of shopping? Download the latest presentations Integer has shared with the industry including:

• P2P Institute: Are We Still Shopping Smart Post-Recession?
• POPAI: Shopper Pulse
• P2P Institute: Shopping Perspectives on Health and Wellness
• IIR Shopper Insights In Action: The Emotional Shopper Journey: How Research on Shoppers' Feelings Enables You to Understand and Influence Their Behavior

Or click here to check out other presentations.

H&M Gets London's Oxford Street Buzzing

Oxford Street was abuzz, but the queue strangely quiet as H&M kicked off their four day launch extravaganza for the newly refurbished 6-floor Oxford Street flagship store at 1pm Thursday March 14th. 

Traffic was disrupted as the staff performed the Harlem Shake in front of the store shortly before the doors opened. The red carpet was rolled out, DJ's span discs and staff kept the energy and pace of the launch at around high-octane level. 

Lou and Nova greet shoppers and set the tempo.

Are Your Shoppers Actually Connoisseurs?

Have you noticed that your friends have recently transformed into "experts" on everything? They demand the best in all their purchases, from craft beers to video games and running shoes to food carts. Having an endless supply of information at our fingertips has resulted in everyone becoming "experts on" everything with a minimal time investment. We're looking to fast-track our way to Gladwell's 10,000 Hour-Rule. A recent New York Times article explored this phenomenon that has resulted from a simple equation: consumerism plus information equals the rise of the connoisseur.

Consumers, overwhelmed by choice, are looking for the “best” of everything. Time and money constraints have made the traditional road to connoisseurship too difficult for most; however,

What We Say vs. How We Shop

A while ago, we recounted the story of how a simple divider in a shopping cart can radically change shopping behavior. In fact, the little sign that said, "place produce here, all other products there" doubled fresh produce purchases during the experiment.

Additional secondary research by Collin Payne and Mihai Niculescu found that this was massively more effective than other produce marketing methods (shelf labeling, advertising, coupons, etc.), which often only increased sales a couple percentage points.   

But we began to wonder if such a persuasive marketing method would ever survive the standby of shopper research: the direct response survey of purchase intent. So we fielded the question to a panel of 4,593 US shoppers.

We found that a cart divider ranked last in what people claim would influence them to buy more produce.

When asked directly if a cart divider would influence their produce purchases, an overwhelming majority said it would have no effect.

Redefining Brand Engagement - British Airways

It’s the time of year when many of us are in planning mode for summer holidays because airline and holiday companies are holding big sales. I’ve scoured the internet for deals to good locations and on a recent glance at my Facebook news feed, I spotted a shared post about the chance to win a holiday. Lo and behold, it was a British Airways competition that offered a chance to win tickets to a chosen destination, such as Orlando or Barbados, every day for a week. Usually these competitions offer one pair of tickets and a highly unlikely chance of winning, but British Airways was giving hundreds of tickets away each day through two entry routes.

I could enter online via Facebook, where one person could win two tickets each day by answering a question about the chosen destination. It was an easy mechanic, and I completed the task in two minutes.

 

Ikea's Timely And Cheeky Valentine's Promo

How does Ikea make furniture (and its brand) relevant on Valentine's day? Well, @DarraghDoyle spotted this smart and cheeky promotion Ikea Australia put out. 

The offer: free crib for parents whose baby is born on November 14 2013! The implication: get busy making babies today! It's been blowing up Twitter and Facebook, as well as garnering a ton of media exposure.

Bravo, Ikea, for using a simple, affordable promotion to make furniture matter on Valentine's day. It's like taking Oreo's Daily Twist and making it interactive for shoppers.

Price Conscious Shoppers Still Celebrate With Their Loved Ones

Today is a day meant to celebrate loved ones – not only significant others, but all those in our life who we hold dear to us. I still enjoy making homemade cut-out heart cards for my family and friends and, according to the National Retail Federation Valentine's Day Spending Survey, 61 percent of shoppers are also planning to celebrate the day through time spent together with their loved ones and gifts this Valentine’s Day. This year, shoppers will spend approximately $130.97 on Valentine’s Day, which is slightly more than last year.

But while shoppers are spending a tad more on gifts for significant others, friends, family, and pets, they are still keeping close tabs on their wallets. Price and value are on consumers’ minds as they search for last-minute promotions this Valentine’s Day, with 39.6 percent of shoppers shopping at discount stores, according to CBS News. The biggest selling items this year, according to National Retail Federation, are traditional Valentine’s Day gifts including candy, flowers, and jewelry. Although 51 percent of gift givers will give candy and only 19.6 percent will give jewelry, this still stacks up to more than $4.4 billion spent on diamonds for the holiday.

As shoppers are searching to find the best gift at the best price, they are focusing on spending a little more time to compare products and prices across retailers as well as across devices. The National Retail Federation Survey states that 41 percent of smartphone owners plan to use their mobile devices to shop for gifts, while 47 percent of tablet owners will purchase and research gifts with their tablets.

While shoppers are searching and making careful decisions on how to spend their dollars this year, those buying are also looking forward to simply celebrating with their loved ones. What are your plans for Valentine’s Day 2013?

Paper Versus Plastic

According to the National Retail Federation, in 2012 Americans spent $50 billion on retail via credit/debit, which equates to $427 in transaction fees per household.  If shoppers were fully aware of the hidden fees bank/credit card companies imposed upon retailers; 2% of each credit card transaction, would we see a shift in shopping behaviors? If retailers were required to post the fee amount, would people stop shopping at stores with high fees or use a different form of payment?

A number of small businesses, boutique retailers and restaurants around the country have shifted to cash only or set minimums for credit card transaction.  For example, the famous steakhouse Peter Luger in Brooklyn, NY only accepts cash and if you don’t have the cash you can use their debit card machine.  The large club store retailer Costco only accepts cash, checks, debit cards, or American Express. Per Costco’s website, they don’t accept other major credit cards because their “exclusive arrangement with American Express helps to assure the lowest transaction fees available, which in turn helps keep prices low.” Costco shoppers are okay with this policy because they value receiving low prices over paying with plastic and earning rewards points and Peter Luger customers prefer to receive quality food.

For some companies curtailing transaction fees may lead to higher revenues and/or lower product prices, however traditional grocery retailers may want to consider a hybrid approach. Given the economic condition of our country and the fact that a number of households depend upon their credit cards for survival, this practice would alienate a large portion of customers.  As an alternative, these retailers could specify day(s) of the week featuring cash, checks, or debit cards only and offer storewide savings.  The savings the retailer generates from not having transaction fees could compensate for the storewide sale, generate more traffic and/or new customers. Times are changing and who knows when a shift in shopping behavior will occur. 

 

2013 Shopper Trends In Light of New Year’s Resolutions and The Fiscal Cliff Scare

Though we have averted the fiscal cliff, I wonder how it will impact shopper trends in 2013. According to BIGInsight’s December 2012 survey, consumer confidence is down month over month (Index of 95) but remains stronger than 2011 (Index 139).  Combine that with post-holiday purse tightening and the popular New Year’s resolution to spend less and save more, shoppers may be a harder audience to woo in 2013. 

With expenses on the brain, shoppers will be looking for more in 2013—more bang for their buck, more entertainment (online and offline) and basically more of everything. The good news is that brands and retailers are already finding ways to do this via interactive retail, subscriptions and fashionization of their products. Trend Hunter’s 2013 trend video indicates that these retail tactics will continue in 2013 and that we should expect to see more semi-permanent (formerly pop-up) retail stores, vending options, upgrades to the average, and immersive branding this coming year. Though digital is an ever-growing force, it appears that digital and physical POS will continue to work in tandem to bring more to shoppers. Do you think this will be enough to woo shoppers in 2013 given the recent damper on the state of the U.S. economy?

 

Connecting Our Social and Consumer Psyches

In a post last week, we discussed the psychology that drove shoppers to buy in increasing numbers during the Thanksgiving weekend events, from Black Friday to Cyber Monday. One of the principles discussed, fear of missing out, (FOMO) is of particular interest today; the term has been used more and more frequently to describe a behavior resulting from the growing presence of social/digital connection to our day-to-day lives. JWT Intelligence released a study uncovering the drivers and anxieties related to FOMO. We've always had a fear of missing out, but that fear is exacerbated with the onset of real-time, location-based, and social media tools. Real-time digital updates to your computer or mobile phone from Facebook posts about the party your friends are a and Foursquare check-ins at a local restaurant are generating social angst. The study hypothesizes that as social media makes people aware of things to which they might not otherwise have been privy, it can spark a sense of vicarious participation or motivate real-world behavior.

The Psychology Behind Thanksgiving Weekend Shopping

Black Friday, Small Business Saturday, Cyber Monday, and door buster after door buster—The Thanksgiving weekend has become a marathon of retail events, one leading in to the next in rapid succession. The weekend packs in a lot and is proving to be bigger and more successful than ever. In fact, the latest issue of The Checkout indicates that 22 percent of shoppers will do most of their shopping sometime between Black Friday and Cyber Monday (vs. 19 percent in 2010). This is not surprising, because there are more and more ways to shop the weekend. Be it with the crowds, at night, in the morning, from your couch (online), or browsing Main Street—there is an option for every type of shopper. 

But recent research indicates that Black Friday sales don’t always offer the best prices and that Small Business Saturday and Cyber Monday are still finding their footing. So why does this epic weekend continue to bring out record numbers of shoppers, their wallets, and sometimes wild behavior? We feel it’s because each event and day offers shoppers a different retail event or experience that appeals to something bigger than their wallets—their psyche.

Shoppers’ brains are hard-wired to look to others for guidance and to avoid risk (a psychological principle called social proof and risk aversion). This is true especially during the holidays when shoppers need to find the season’s must-have gift before it runs out. Retailers tap in to this principle by overflowing the market with news about their events that they hope will instigate FOMO (a fear of missing out) and drive shoppers to join in on the weekend’s events. Retailers also benefit from other psychological principles such as scarcity and loss aversion that drive shoppers to shop early and shop often.

Did you find yourself being pulled into the weekend’s festivities? Stay tuned for more perspectives and in depth coverage on holiday shopping here on ShopperCulture.com. 

Contributed by Jenna Taffet and Kira Torgersen

Photo Source: CNN Footage, When Black Friday Goes Bad