What is Impulse Buying and How can you Maximise Revenue from it?
Impulse buying is when a consumer makes an unplanned purchase, it is an unplanned decision usually just before the moment of purchase. Retailers can take advantage of this shopper behaviour, by utilising impulse retail shelving to display products that will deliver perceived instant gratification to the consumer.
So for example, when out doing a grocery shop, something like a chocolate bar or sweets may not be something the consumer is actively setting out to buy, however with well laid out impulse display stands, and eye catching or appealing products then an emotion as opposed to rational decision to purchase could be made.
Because impulse buying isn’t based on logic and rationality, then it is harder to judge what will sell. However by having products on offer, then the notion of ‘The Fear Of Loss’ can be attributed to impulse buying. By seeing that something is on offer for a limited time period, then people are compelled to get the product there and then so as not to miss out on a deal or to avoid paying more for something (even if they didn’t necessarily want it in the first place).
Research has shown (National Bureau of Economic Research), that it isn’t just small items that can be impulse purchase. For example when buying a car or a high end piece of technology. This is because these often more emotional than logical decisions. For instance in the case of cars, research has shown that on a hot day 10% more convertibles are likely to be sold; and in periods of snow then sales figures of four wheel drive cars goes up at the time and for up to a month following this.
Studies have shown (Read and van Leeuwen) that consumers that go shopping on an empty stomach are likely to make impulse purchases, and will have an adverse effect on decision making, for instance they will go for junk food in a situation where they may normally have bought something healthier. Therefore, with the right impulse retail shelving in the right places, retailers can make use of this type of buyer behaviour and boost their revenues.
As impulse display stands are mobile and have various options of layout available, it is possible to rearrange and position it, in order to maximise revenue and capitalise on trends or events that may be taking place. So for example if there is a sporting event or particularly seasonal weather, then products that tie into this could be displayed using impulse retail shelving, positioned in a fashion that will grab the attention of potential impulse customers.
Impulse retail shelving is a worthwhile investment for retailers looking to maximise their revenue from sources other than their core products. By displaying items that may be of interest to people buying on impulse, then impulse retail shelving can make some sales that wouldn’t have normally been achieved. If these items are high margin, then it will help pay off the initial outlay of investing in an impulse display stand.