Retail Psychology: Why Shoppers buy what they do, how stores can change them and why it will be the next big thing
According to a report by the market research firm, Technomics, there are more than 13 million retail locations in the world today. With such a huge number of options already, it’s easy to assume that these numbers won’t be growing anytime soon. While this may very well be true for physical stores, shoppers’ demand for digital purchases continues to grow. So while the future of brick-and-mortar retail isn’t looking so great, it appears that ecommerce will continue its trend as one of the most profitable industries in the coming years. This article takes a look at why this is happening and how retailers can leverage their understanding of consumer behavior to create experiences that drive sales and build loyalty among customers.
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How did we get here?
Shopping has become an essential part of human existence. Whether it’s to acquire a new phone case or a new pair of jeans, every day people shop to meet their needs. But how do we go about doing that? In his study of human decision-making, psychologist Robert Cialdini published two theories to explain how people make purchasing decisions. The first theory is called “priming,” which holds that people notice and then automatically associate certain objects or brands with a certain emotion. The second theory is called “noeses,” which is based on the idea that people are subconsciously trying to understand the different buying needs and preferences of different brands and products.
The psychology of shopping
Humans are social animals and as such, shopping is a natural part of the human experience. We participate in groups and try on clothes together, and we shop for brands that we know and trust. This makes sense, as shopping for one’s self is a very human activity. Shopping for one’s self is different from shopping for others, as others may not experience the same emotions that compel us to shop for our own selves. There are many reasons for this, including the fact that most people buy for themselves before they buy for others.
What does the future hold for retail?
Retailers can expect to see a lot of change over the next few years, as the advent of new technologies and consumer behavior change the way we shop. Let’s first take a look at what’s coming for physical stores.
3 ways retailers can leverage consumer psychology to boost sales
Kids and Convenience — Kids have been flocking to the convenience store and convenience store brands for years. As the number of retailers focused on kids increases, so too will the selection of convenience store brands. In addition to traditional juices, snacks and drinks, brands like 7-Eleven and Gator will be available to consumers of all ages. Optimizing In-Store Signage — With the evolution of mobile technology and the rise of digital commerce, more and more people are going to be shopping online. That said, traditional in-store experiences will remain important for a few years at least. Brands like Quik, 7-Eleven and Gator will continue to be available in physical stores, but they’re not going to be the only brands available in those locations. Boosting Brand Loyalty — There’s a chance that consumers could start shopping more throughout the week, rather than just on weekends. This could lead to more frequent trips to the store, which could ultimately lead to more purchases.
2 ways in which big data will change the game
Increased Awareness and Use of Data — Big data is going to change how marketers collect and use data. In the near future, customers will be able to search for retailers and brands by using their phone’s camera, rather than typing in keywords or exact addresses. With more data available, retailers will easily be able to find new ways to appeal to their customers. With an increased awareness of big data and its uses, we could see the development of new data-driven marketing strategies. This could include offering discounts and giving away free samples based on prior purchases, rather than using keywords or exact addresses
Retailers are going to see a lot of changeover over the next few years, as the advent of new technologies and consumer behavior changes the way we shop. The changes will be wide ranging, but one thing is for certain: Consumers will be looking for new experiences and old-fashioned value in their shopping destinations. Big data will play an important role in all of this, as it will allow retailers to better understand their customers and make more targeted in-store offers, as well as enhance their digital offerings. Looking ahead, retailers will have to adapt their businesses to stay ahead of the curve. But with the right strategy and a bit of luck, the future of retail is bright.
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