Tesco Malaysia Observation

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On Thursday May 6, 2010. I went to the Tesco supermarket at Puchong. At first I came to Malaysia, I don’t know about Tesco, because they not open a branch in my country, Indonesia. I only know the supermarket like Giant and Carrefour. First of all, I think Tesco is a local company, but several times later I know that Tesco is originally from UK. I like to come in weekdays so it’s not crowded as on weekends. One day, I heard about supermarket psychology was when someone explained to me that the most appealing products were always shown at eye level. When the product is placed at eye level, you are easier to pick it up and subsequently buying it. That’s only the beginning. Long time before I never care about how the supermarket layout could manipulate my behavior to spend more. But when, I investigate more, I feel quite surprise that all retail store are designed to persuade the customer spend more than their expectation. It is also one of their strategies to maximize profit. Customers come to the store to fulfill a need. Don’t come to supermarket when you are hungry, if you hungry you will probably make irrational decisions about what you buy and may buy more food than you need. And the supermarket use tactics of the smell of freshly baked bread coming from the in-store bakery during the after-work rush. Tesco also have food stall at the back of the store, they display some valuable food (e.g. sushi, roasted chicken, etc) it might tempt you even though you’re not hungry. Many costumers expect the cheapest price; Tesco put irrational pricing for most of their products. The reason offered for not instead rounding RM 5.99 to RM 6.00 is based on memory processing time. Rounding upward involves an additional decision compared with storing the first digits. The first impression on the first digits is quite stronger. The colours also used in supermarkets, to invoke our emotions into spending more money. Red is used because it stands out above all other colours. They put...
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