MadCow Research

Book Summary: Why We Buy: The Science of Shopping - Paco Underhill

This book is for anyone who has ever shopped for anything or tried to sell something. It is not an easy book to summarize because so many details are worth reading. The book covers retail products - not services. I highly recommend it to anyone who wants to make an impact in retailing.

Chapter 1 - Background
Stores would not survive without impulse shopping.
We are over retailed.
New stores are trying to steal existing market share because there is no new market.
Brand names are being eroded. ("Selling the Invisible" says the opposite.)

Chapter 2 - The Mechanics
In some stores, buyers spend three to four times longer than non-buyers. Get them to shop longer - talking to employees helps.
As shoppers ourselves, you would think we could organize our own stores properly.
We can determine where shoppers will walk in a store.
Amenability and profitability are inextricably linked.

Chapter 3 - The Approach and Entryway
While walking through parking lots people, are not looking at the store windows.

Chapter 4
Keep the customers' hands free to touch and browse.
One store gives you a bag to gather stuff in and then tries to sell you the bag at the check out.

Chapter 5 - Signs
People don't see signs. They are focused on other things, or signs are badly laid out and placed in the wrong places.
Put signs where people are waiting. Give them something to look at.
In 1½ seconds, we can only read 3 or 4 words.

Chapter 6
Shoppers move like people - they want to see stuff face on, not sideways. This applies to window displays & store displays.
American shoppers move to the right the same way they drive.

Chapter 7 - Dynamics
Provide seating for support people: husbands shopping with wives, etc.
More than 50% of fast food is served in Drive-Thru Windows. Ten percent of those people park in the parking lot to eat (primarily women).

Chapter 8 - Shop like a man
Men are easier to up sell than women.
Men are more likely to ignore price tags.
Sell to the woman - close to the man.
Open a women's store next to a store that will keep the men happy, e.g., computers etc.
Women's stores are not organized for men to buy.
Men's Health magazine sells more than 1.5 million copies per month.

Chapter 9 - What women want
Hardware stores now make it much easier for women to shop.
Very few coupons are used anymore - Safeway card is the new style.
Stores selling cosmetics.
Stuff for older people on the lowest shelf. We can't get down there with any comfort.
Will I get jostled if I stand here?
Fast food restaurants: men tend to sit at front, women in rear.
Women focus on results, not processes when computer shopping.
Gas station for women: the cleanest washrooms anywhere.

Chapter 10 - We're getting older
We can't read labels and signs. They must make it easier for us. Eyes start to falter at age 40. Also, blues and greens blend so are not good for contrast. At 50, we get 1/4 less light in our retinas than a 20-year-old does.
The lighting is too dull.
Put a magnifying glass on a chain near medicine bottles.
ATM's should talk to us.
How can you make your store more senior citizen friendly?
Over 60's wheel chair accessible!
Mattresses will become quasi medical and less furniture-focused.

Chapter 11 - Kids
Kids go shopping with parents. If you cater to families, is your store stroller accessible?
Even McDonalds make it difficult for kids to order. Kids can't see menus, can't see over counter.
How smart booksellers stack their shelves. Very good section about bookstores.
Toys: Adults select and buy but the kids are the decision makers. Stores need kid appeal.
Wells Fargo: 15% of traffic was under 7 years of age.
Help keep the kids amused.

Chapter 12 - The Sensual shopper
We buy more than ever based on trial & touch.
Close to 90% of new products fail mainly because people don't try them.
In 1960. 35% of a Sears store was storage, now it is 15%.
23% of Asian-American shoppers tore open packages to check the product.
Dressing rooms: Very good section in the book. It's got great potential. They are underutilized.
Testing products: Three types of pencil sharpener: hand, battery, electric. Can I test them? No way. Not set up and no pencils to sharpen.
Gel deodorants for men from Gillette: How can we distinguish one from another. They are all sealed, we can't smell them or touch anything. We have to be able to explore the product.

Chapter 13 - The Big Three
Design, Merchandising, Operations. Often these don't work well together.

Chapter 14 - Time
Bad time is when the customer is made to wait.

Chapter 15 - Cash/Wrap
Many things go wrong here. Reduce theft and other good ideas: combining the two is frustrating for the customer.

Chapter 16 - Magic Acts
Layout of stores
Add-ons - up selling
Linking products: in book store, put the kid's books & health books near the women's books.

Chapter 17 - Cyberspace: advantages and disadvantages
Difficult to find your way around.
You can't touch the products.
No social interaction, no immediate gratification.
Catalogues account for less than 10% of shopping.

Chapter 18 - Self exam
Book gives a great example for bookstore.
Examine your business: start ½ block away; look outside the store and inside the store.
Put signs where people linger.
Americans don't list banks among their top five sources of information and advice on finance. In the US which bank employee has the most interaction with customer? The security guard, and he doesn't work for the bank.

Chapter 19 - Final thoughts
In the old days, the right price/location/product was success. Now that is what's necessary to survive.
Where is the art, the presentation, the romance, the seduction in shopping?
What we like: touch; mirrors; discovery; talking; recognition; bargains
What we hate: too many mirrors; lines; asking dumb questions; goods out of stock; obscure price tags; intimidating service
Demands of anatomy must be obeyed. Gender and ages must be accommodated.

posted by MadCow @ 4:44 AM