Relocation Of Consumables May Prove To Help Business

Research Question

Many businesses dependent on frequent purchases (such as a grocery store), decide to place certain products near the exists of their establishments in order to claim last-minute purchases. These items can range from consumables to gift cards but tend cost less than 100 dollars. Gyms, however, offer recurring memberships for their customers to purchase. Gym memberships are usually presented in different packages containing various benefits (such as more visits per month), but many gyms realize a membership may not be enough recurring revenue to continue to maintain profit margins. To remedy this, some gyms like to offer a supplements bar, where they offer items like protein shakes or vitamin supplements. The placement of this bar may be very crucial to customers’ purchasing behaviors. If the bar is closer to a customer’s frequent location in the gym (next to the rowing machine, for example), they could feel more inclined to visit more often than a customer who is never in that area of the gym. At the same time, customers may not feel inclined to visit the bar anymore if it is closer to them, which could allocate space for something affected by proxemics. Although studies exist where other types of businesses are looked at for these sort of design elements (such as a gas station) there is little information regarding gyms. Going to the gym tends to be more strenuous than taking a stroll through store aisles, so results could vary between these businesses. We analyze current research findings to build a foundation in order to answer the question, “Does the placement of a supplements bar in a gym affect its sales?”

Current Research

Choice architecture modifies fruit and vegetable purchasing in a university campus grocery store: time series modeling of a natural experiment A study was conducted to test whether or not changing the fruit and vegetable layout and arrangement in a grocery store would affect college students’ dietary decisions when shopping. There were two tests conducted; one test moved the fruits and vegetables from the rear of the market to the front, where the produce was positioned to face towards shoppers in order to gain attention and accessibility. The second test took these fruits and vegetables and placed them into a chiller near the same area as the first test. The study was observed over the course of five years through analytics provided by the grocery store. The first test proved to help increase sales of produce, whereas the second test seemed to marginally help. This research suggests the placement of goods towards an entrance of a store helps increase sales. The effects of store layout on consumer buying behavioral parameters with visual technology The authors of this article decide to utilize virtual reality to simulate a grocery store with different layouts. Although no significant results are discovered between circular or grid-based designs of a store, the authors discover hedonic shoppers prefer to browse more than utilitarian. The study suggests shoppers are more motivated by their interests than a store’s layout.

Store atmospherics: A multisensory perspective

The authors of this article evaluate the effects of different stimuli on the five senses. Visual cues like lighting, color, and product placement have a direct positive effect on shopping behavior. Consumers spend more time browsing through products when they are carefully positioned in an attractive manner. Visual cues, according to the authors, may trigger associations that can facilitate decision making. One drawback to dealing with appealing to human senses can come from competing stimuli. It’s possible to have too many bells and whistles in a facility and that can make it difficult for consumers to concentrate on a product.

Retail atmospherics and in-store nonverbal cues: An introduction

This article focuses on non-verbal cues for consumer-product interactions in a retail context. Participants in the study referenced in the article are more likely to interact with product display when they don’t feel pressured by overwhelming displays. The authors highlight the importance of careful product placement in stores. Effects of customer brand perceptions on store image and purchase intention: An application in apparel clothing In this study the author aims to investigate the effects of price image, brand image and perceived risk on store image and purchase intention of consumers in sectors of stores. The study also examines the mediating effect of store image on the relationship. The data was gathered through questionnaire distributed in face to face interviews. The findings of the research which was conducted on 146 retailer shoppers supported direct effect of price image, brand image and perceived risk on purchase intention. There has been also empirical evidence regarding mediating effect of store image on the relationship between price image and risk perception and purchase intention. Customer perception of service, store image and products assortment - from an interior store perspective In this thesis is to find out how the case company’s existing customers perceive them; both when it comes to the actual store itself but also, more importantly, how the customers experiences the service they receive and the products they are offered. The aim here was to analyse the existing customers’ perception of the store, its products and service. Secondly, to investigate how the company can use this knowledge and develop their business and customer service even further.

Healthy food products at the point of purchase: An in-store experimental analysis

The purpose of this study was to examine the sales effects of modifying or changing-up the typical store shelf products on the front-end shelves of the store, more specifically at the point of purchase. Some healthy food selection items were place with unhealthy food items. All healthy foods, such as dried fruits, were replaced with a trail mixes and assorted candies. The experiment was to see if consumers would still choose to select the healthiest items placed on the front-end shelves versus the unhealthiest food item such as a Hershey’s candy bar. Advertisements were excluded for the first four days of the experiment. Once advertisements of push-items were placed, the purchasing behavior increased. Customers were more willing to purchase the healthy items over the unhealthy items. The results found that placing healthy food items on the front-end shelves of the store, it increased the buying percentage of these products. It can lead to a positive impact on sales for healthier foods items versus unhealthy food items. However, adding advertisements to these items on the front-end did not impact the sale of these items.

An in-store experiment on the effect of accessibility on sales of wholegrain and white bread in supermarkets

The purpose of this experience was to study the and examine the convenience nudge principle in supermarkets. The study was done in two separate stores with similar bread layouts over a two-week course. “Five clusters of fresh breads were identified, labelled for this study as whole grain, dark wheat, wheat, light wheat, and white because, in Dutch supermarkets, bread is identified by color rather than by degree of refinement of the wheat. These bread clusters were organized on shelves on the left side of one aisle that customers entered from the left and exited from the right (de Wijk, Maaskant, Polet, Holthuysen, van Kleef, and Vingerhoeds). ” The healthier bread was on the left side in one super market and the unhealthiest bread on the left in the other supermarket. The results showed that in the first supermarket, the customers choose the healthier bread versus the healthiest and vice versa. The placement of the breads had an impact on the sales of the bread. Consumers were purchasing bread on the pure convenience of the location and the accessibility of the bread. Placement of products has a effect on consumer purchases.

Presence of candy and snack food at checkout in chain stores: Results of a pilot study

This study examines the presence of candy and snack food in the checkout lines of all retail chain stores in a selected community to determine the presence of these products, the ways in which these products are promoted, and the type of environment through which customers navigate during the checkout process. The findings confirm that candy, soft drinks, snacks, and ice cream were present in a large majority of these retail stores. According to Convenience Store News (CSN), in 2012 average sales per store rose 4. 5 percent to $40,786 while seasonal items (candy) increased sales by 10 percent to $42 million across the convenience industry. There are three themes for discussion from the data collected: product marketing, product packaging, and product placement. This study can help identify how these stores are displaying their products and why stores chose to place them in their strategic order.

Product placement drives impulse sales

This study discusses the impact of product placement of candy products in sales impulse. According to Front-End Focus' study, the most important factor in impulse sales is checkout because it is the only location where all shoppers must go. It also says that putting a confectionery product (candy choices) on both sides of the store boosts sales, and frequent exposure of consumers to confectionery helps in impulse sales. A finding in this study shows that 32 percent of shoppers select an item at one checkout lane and then go to another, 18 percent of shoppers have to look at all checkout counters to find the item they want, and lastly 16 percent of shoppers select a certain checkout lane because of a particular item being displayed (Front-End Focus, 2012). These findings can help discover new ways to put certain supplements out to gym members that may or may not know about supplements. Also, this study has tips into impulse selling which can help improve supplements sales and better product placement.

Interview Questions and Answers

What percentage of your total gym revenue is typically generated from your supplements bar Annually? A: “Annually we generate around 4% off of supplements. ”Do you ever notice a decline in sales from your supplements bar consistently during a specific time period? If yes, around what time of year does this occur? A: “Yes. People typically spend less money on supplements around winter time on supplements, at least at my gym. Mostly due to the fact that we sell more sports drinks than anything and people tend to sweat less when it’s cold out. ”Would you say your supplements bar is at its maximum potential in terms of sales? Why? A: “There is always from for improvement when it comes to profitability. Our system right now is to reduce liability as that is not our main source of income.

Although, we plan to grow and soon prioritize a portion of the gym strictly to supplements and apparel. ” How many products does your supplement bar currently carry? Would you say you have too much or too little inventory? A: “Always in stock we carry different flavors of Fitaid. All other supplements are shipped in per monthly demand. “Do new members of your gym notice the supplements bar right as they walk in? A: “I would say no as we dont keep any on stock apart from a fridge to the right of our front desk. ”What are the highest selling products from the supplements bar? A: “A Carbonated recovery drink called Fitaid. ” What are your lowest selling products? A: “I wouldn’t say we have a particular product that sells badly, but I would have to say our gym apparel. ”How would you increase the sales of these products? A: “I try to keep these at the front of the store since almost everybody is going to notice them when walking in. ”Are there new products you would like to sell in your gym? Would you need to replace your less favorable products with these products? A: “I have been thinking about adding new products to the bar. ”How do you think replacing products would impact your supplement sales? A: “Replacing products suddenly might make some customers either angry or upset. I’m sure adding products would be accepted well, but taking product away is not something very many people like. Do you believe partnering with GNC or any supplement store and finding out which products sell help your business gain revenue? A: “Definitely. If I were to get a connection with GNC and be able to brand them with my supplements, I think sales would increase just from brand recognition. ”Has your gym ever conducted any surveys to find out which supplements they would love to see in the bar? A: “Yes, that’s how we discovered FitAid was the most popular. We looked at analytics and compared them to survey results, and they seemed to match pretty well” Assuming that not all gym members take supplements, does your gym have any “Starter Kits” or “Samples” that buyers can try? A: “Yes, often times we offer samples of extra portions of protein shakes to try and get more members to visit the bar. ”