Store Design and Atmospherics

Store Design and Atmospherics

Introduction

• Store design is crucial and involves several key elements, including:
  • Atmospherics
  • Exterior
  • Layout
  • Interior
  • Displays

Visual Impressions

• Customers form impressions even before entering the store.
• Impressions are shaped through:
  • Visual cues
  • Sounds
  • Smells
  • Catalogs
  • Websites
  • Vending machines

Store Exterior/Shopfront

• The shopfront serves as an advertisement.
• Essential factors:
  • Branding: Ensures customers recognize the store’s presence.
  • Communication: Clearly conveys the store’s identity, offerings, and pricing.
    • Implicit: Subtle messaging that sets a scene.
    • Explicit: Clearly stated information, such as exact pricing.

Enticing Customers

• Various methods to attract customers:
  • Display windows: Allow visibility into the store.
  • Banners and ads: Promote discounts and offerings.
  • Spruikers: People convincing others to enter the store.

Atmospherics

• Impact of atmospherics:
  • Enhances shopping enjoyment and satisfaction.
  • Increases browsing time.
  • Encourages interaction with sales staff.
  • Increases spending beyond initial plans.
  • Boosts return visits.

Scent Marketing

• Scent marketing involves using specific smells to influence consumer behavior.
• Examples:
  • Chocolate companies using chocolate scents in supermarkets to increase sales
  • Candles that mimic the smell of new Apple products, creating customer loyalty
• Potential impact:
  • Increased customer loyalty (though excessive loyalty may not always be a positive indicator).

Sensory Effects on Behavior

• Senses significantly influence consumer behavior.
• Examples:
  • Wine tasting: When told wine is more expensive, people perceive it as better tasting, regardless of actual quality.
  • Music: Classical music leads to higher spending on wine (up to $5$ more on average).
  • Color: Changing the color of wine affects taste perception.
  • Lighting: Bright lights cause closer inspection of produce.
  • Touch: Encouraging customers to feel products increases the likelihood of purchase.
  • Music Preference: Liking in-store music increases time spent in the store and spending.

Music and Age

• Music preference is often linked to age, with people favoring music from their younger years (around age 24).
• Implication: Playlist design requires consideration of the target demographic's age.

Components of Atmospherics

• Atmospherics encompass various elements:
  • In-store layout
  • Merchandising
  • Cleanliness
  • Lighting
  • Music
  • Pricing tickets
  • Posters and graphics
  • Window displays
  • Paint colors
  • Fixtures
  • Visual organization
  • Frequency of changes
• Research: Many elements lack thorough research regarding their direct impact on sales.

Store Interior

• Key components of the store interior:
  • Flooring
  • Colors and lighting
  • Scents (e.g., KFC or Subway)
  • Music (relevant to category buyers)
  • Fittings (quality reflects product value)
  • Heating and cooling (affects customer comfort and shopping duration)

Sensory Overload

• Sensory overload in supermarkets (e.g., noise, bright lights) can negatively affect customers, particularly those with sensory sensitivities.
• Solutions: Quiet hours with dimmed lights, reduced noise, and minimized smells.

Store Layout Models

• Traditional Model:
  • Selling space
  • Customer space
  • Merchandise space (storeroom)
  • Personnel space
• Common Reality:
  • Most space dedicated to selling
  • Limited merchandise space (primarily on the floor)
  • Minimal customer space
  • Very little personnel space, often combined with merchandise storage

Product Grouping

• Various methods:
  • Functional use (e.g., socks and underwear)
  • Market segments (e.g., kids' clothes, men's clothes)
  • Storability (e.g., freezer items together)
  • Motivation (e.g., impulse buys on the ground floor, higher-consideration items further away)

Space Allocation

• Methods for determining space allocation:
  • Model stock: Allocating space for at least one of every size.
  • Sales productivity: Allocating more space to best-selling items.
  • Profitability: Allocating better spots to more profitable products.

Presentation Methods

• Open Assortment: Accessible for direct handling (e.g., greeting cards, books, clothes).
• Closed Assortment: Restricted access due to value or theft risk (e.g., jewelry).
• Theme Displays: Organized around themes (e.g., Christmas, Easter).
• Ensemble Displays: Complete coordinated sets (e.g., gift packs, outfits).
• Rattus Play: Items mixed, requiring customers to sort (common in clothing).
• Cut Case: Pallet-sized boxes with the top cut off for self-sorting (common in supermarkets).