Which promotion is intended to capture the impulse purchase

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Request Permissions. Xiaoni Zhang, Victor R. Prybutok and David Strutton. Journal of Marketing Theory and Practice. Cite this Item. It depends. In retail, research suggests that shoppers are more likely to spend in stores.

The senses intake all the environmental cues and generate a strong response, which leads to a purchase without hesitation. In the end, shopping offers a hit of dopamine that consumers crave for instant gratification. Ever think about why you spend more than you wanted to when shopping? For example, your window display is ideal for differentiating and attracting customers into your store. Previous studies also suggest that window displays have a positive influence on impulsive buying when the products are in high demand.

Point-of-purchase displays are another placement tactic retailers use to encourage impulse buyers. This way, shoppers can browse featured products while they wait in line and can add them to their cart at the last minute. If products look unique and special, shoppers will notice them. Research from Ridgeway, Kukar-Kinney and Monroe found that impulse buyers seek novelty items and are hyperactive.

These sensation seekers experience positive feelings when finding new stuff that leads them to buy products right away. The lesson here? Innovate on your product selection. This can cause excitement and enjoyment from shoppers, which leads to more sales. Product bundling refers to when you package complementary products in a group that shoppers can buy together.

They are often bundled together as a cross-sell or upsell. Studies have shown that impulse buying is more likely to occur when products are sold with bundling offers for hedonic goods, but not for utilitarian goods.

A study from Harvard Business School demonstrates how powerful product bundling can be as a tool to increase sales. The study looked at a tactic Nintendo used when selling video games and consoles. Product bundling at checkout can also help customers pull the trigger on impulse buys. At your retail shop, it could look like a sales associate telling customers about a bundle promotion if they add one more item to their purchase. Or you could represent it on signs throughout your store and marketing assets.

Encouraging impulse purchases requires the right mix of product selection and product placement. By drawing on specific store layouts and interior design principles , you can lead customers past your high-demand items and plan for more predictable foot traffic. That makes it easier to determine the best placement for impulse displays. That way, you can boost purchase values with products that customers are ready to buy without too much consideration.

Another way to keep impulse prices down is to use your designated impulse purchase areas to display products that are on sale. It frequently offers discounted samplers of new fragrances and little add-ons right next to the cash registers.

Combining sale prices with the urgency of a limited-time promotion is a recipe for impulse buying. In this space, choose lower-priced products that complement in-demand anchor products. For example, a grocery store might display waffle cones in front of the ice cream freezer. A light box is the advertising industry term for a lighted POS display.

These are similar to ones used by photographers, and use fluorescent bulbs to illuminate a poster that has been inserted into the light box from either the side or the rear.

Setting up a display at a cash register, though simple in theory, requires planning and knowledge in order to deliver desired results. Poor results may be caused by:. Online sales promotion can create personal relationships, channels of communication, and an exchange of information regarding a product.

Discuss on line sales promotion as a sales promotion method and relative to personal selling and sales promotion. Sales promotion techniques are certainly not new but they have been revitalized through new media and technology, especially as it relates to online usage. Internet Marketing Plan : Some of the same promotions that work offline also work online. Online sales promotions are meant to turn site visitors into consumers.

The objective is to get the visitor to take action by contacting a sales representative and ultimately buying the offered product. The methods to accomplish this goal are diverse and include:. The personal touch often makes all the difference when selling. The development of a relationship with a sales representative created by a personal referral often makes the difference between an inquiry and a sale. Interactivity is the key to site stickiness.

The Internet allows sales representatives to reach exponentially more potential buyers. Emails blasts can reach thousands of potential buyers at one time. Videos posted on websites like YouTube have the potential to go viral. Through content and inbound marketing, a sales representative is capable of offering specific, expert, and personalized information to site visitors.

Social media enables a company and its sales team to make contact with like-minded individuals and to convert those who are unfamiliar with the product or service being sold.

Affiliate programs transform site visitors to business partners by offering rewards for referral business. Search engine marketing SEM promotes websites by increasing their visibility on the search results page.

The latter, also referred to as search engine optimization SEO , offers a more organic, natural, and free way to garner a desired ranking on a search results page. Online offers and giveaways are simple and enable marketers to cultivate and gather valuable sales and demographic information.

Software companies do this all the time when they offer free downloads, stripped down versions of the software, or trial periods. Online sales promotions enable you to obtain measurable results. Online sales promotions also enable you to see what the competition is doing. Privacy Policy. Skip to main content. Personal Selling and Sales Promotion. Search for:. Promotion Methods in Consumer Sales.

Coupons A coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. Learning Objectives Show how and why coupons are used as part of sales promotion methods. Key Takeaways Key Points Coupons gain popularity during tough economic times. Coupons offer marketers both advantages and disadvantages. An effective coupon program can be measured and entices consumers to use the coupons.

Key Terms brand awareness : Brand awareness is the extent to which a brand is recognized by potential customers and is correctly associated with a particular product. Rebates A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. Learning Objectives Examine the rationale behind and the use of rebates as part of sales promotions. In some cases, the rebate may be available immediately, in which case it is referred to as an instant rebate.

Even though rebates provide savings to customers, getting their money back requires a lot of work and may not be worth it to some. Key Terms mail-in rebate : A MIR entitles the buyer to mail in a coupon, a receipt and barcode in order to receive a check for a particular amount, depending on the particular product, time, and often, place of purchase. Premiums Premiums are prizes, gifts, or other special offers consumer receive when purchasing products. Learning Objectives Identify the rational, types and use of premiums from a sales promotional and personal selling perspective.

Key Takeaways Key Points Premiums fall into one of two categories: free premiums which only require the purchase of the product and self-liquidating premiums which require consumers to pay all, or some, of the price of the premium. Premiums can actually enhance an image and were, in fact, the basis of of the first loyalty marketing programs.

Integrate the premium with other marketing tools such as advertising and POP displays. Key Terms Self Liquidating Premiums : require the consumer to pay a designated amount of money for the gift or item.

In-or On-package Premiums : usually small gifts, such as toys in cereal or candy boxes Free Premiums : a sales promotion that only requires buying the product to receive the free gift or reward. Loyalty Marketing Loyalty marketing is an approach whereby a company focuses on growing and retaining existing customers through incentives and rewards. Learning Objectives Discuss the basis, use and impact of loyalty programs as a personal selling and sales promotion tool.

Key Takeaways Key Points Some loyalty marketing industry insiders, such as Fred Reichheld, have claimed a strong link between customer loyalty marketing and customer referral.

Contests and Sweepstakes Contests and sweepstakes are two forms of sales promotions which attract consumers by offering them the chance to win a valuable prize. Learning Objectives Discuss the characteristics of contests and sweepstakes and how companies benefit from their use.

Key Takeaways Key Points Contests normally require the participant to perform some type of activity and the winner is selected based on who performs the best or provides the most correct answers. Sweepstakes entice consumers to submit free entries into drawings of chance not skill that are tied to the product or service wherein the featured prizes are given away by sponsoring companies.

Grab the opportunity to bring people into your shop by alerting subscribers whenever you have something happening in your store. Keep messages relevant and only alert people who have opted into your list. The key is training your associates to practice suggestive selling. Do note though, that suggestive selling will only work if you or the associate are able to make a genuine connection with the customer.

This will allow you to make more relevant recommendations. Another great time to engage in suggestive selling? One the shopper is already holding a product. When they already have something in their hands, suggesting something that is complementary to it could increase add-on sales. From that point, you can recommend soil types or plants that would go well with it.

Reese Evans, a former retail associate, also recommends using suggestive selling to address objections. Are you putting any of these pointers into action? What are your other tips for encouraging impulse purchases? Weigh in below. She writes about trends, tips, and other cool things that enable retailers to increase sales, serve customers better, and be more awesome overall.

She's also the author of Retail Survival of the Fittest , a free eBook to help retailers future-proof their stores. Nice article with good points. Anyone who may be reading this however would probably benefit from researching what a market basket analysis is. Are they customers which plan on purchasing a type of product or do they use budgets to determine how much they can spend. If they just want a single item then place items with the highest equity added.

If they use budgets then place items which meet the budget and have the highest contribution margin. And yes, getting to know your customers is critical, as this step will help merchants figure out what products to display, what types of offers to implement, and more. You must be logged in to post a comment.