Exercise 18

Topics: Retailing, Retail design, Marketing Pages: 4 (996 words) Published: September 17, 2013
1. What are the advantages and disadvantages of grid and free-flow layout arrangements?

| ADVANTAGES| DISADVANTAGES|
GRID LAYOUT| Easy to locate merchandiseCost-efficientEasily accessible for customersCustomer familiarityEase in cleaningSimplified securityPossibility of self-service| Limited browsingLimited creativity in décor (Plain and uninteresting)Stimulation of rushed shopping behavior| FREE-FLOW LAYOUT| Incread creativity in decor items to display?sed impulse buyingVisual appealFlexibility| Possible confusionWaste of floor spaceDifficulty in cleaning|

2. What psychological effects of a pharmacy layout may influence customer-buying behavior?

* Value/Fashion image – Presentation of the product influences image customer has regarding that product * Angles and sightlines – Customers view product at 45-degree angle and at eye level. Where a product is placed on shelves influences sales * Vertical color blocking – Display product in vertical bands of color

3. What guidelines should be followed in arranging individual items within departments?

VISUAL
Visual product placement is supported by different theories, including horizontal, vertical, and block placement. Horizontal product placement increases the concentration of a certain article for customers. Research studies have found that a minimum placement range between 15 centimetres (5.9 in)–30 centimetres (12 in) of one single product is necessary to achieve an increase in customer attention. This also depends on a customer's distance from the unit. Vertical product placement puts products on more than one shelf level to achieve 15 centimetres (5.9 in)–30 centimetres (12 in) of placement space. Similar products are placed in blocks – brands, for example.

COMMERCIAL
Commercial placement is determined by both market share placement and margin placement. Market share research companies like ACNielsen collect sales data for various products, and from this data,...
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