why we buy

Powerful Essays
This is an old book published in 1999 by Paco Underhill, an environmental psychologist though he is known more as retail guru. This book highlights key points that affect consumers behaviors when they go for place of purchase, which are vital for the success of every retail and also companies which have products in modern trade. Though there are criticisms that this book is out of dated, the findings in here personally I feel still can be adaptable in this era`. With simple and sense of humor words, this book is found interesting and easy to read.
The key points of this book are:
Conversion rate of customers: what is the percentage of customers whom go to store and buy? For a conventional supermarket the rate is high but for others like musical instrument that rate is lower
Time customers spend:
+ Cosmetics: averagely 2 mins for non-buyers and 30s for buyers (=> they don’t prefer to take advice from sales consultant? )
+ Electric store: non-buyers 5 mins, buyers 9 mins
+ Toy store: buyer 17 mins, non buyers 10 mins (=> yes this is true, I spend lots of time in toy store when I have to buy gifts to my cousins/ niece because it reminds me of my childhood and I have to consider which will suit them) The more time customers spend in shop, the more likely they will spend more => increase customers interaction with staff, the ambiance in store (slow, relaxing music)
Transition zone: customers need time (atleast 5-10s) to adjust to new environment with their 5 senses: smell, hear, see,… => if you put things right in front of the front door, they will ignore, if there are staff jump into customers asking if you need help, they also ignore.
=> advertising upfront doesn’t work, it is very costly to companies to advertise at the entrance of retail but the fact it that customers they just care how to got into the shop
=> products pile up (i.e. discounted items) to slow down customers in transition zone is a good idea
The bigger the basket, the more likely

You May Also Find These Documents Helpful

  • Powerful Essays

    Why We Buy

    • 18258 Words
    • 74 Pages

    Why We Buy Introduction In an effort to discover why we buy, Paco Underhill set out a mission using video equipment, store maps and customer profile sheets to gather research. Once his business began to grow he founded a consulting firm, Envirosell, and began to discover over 900 aspects between the shopper and the store. Why We Buy, gets down to the basics of how retailers and consumers interact. Each chapter takes the reader through a series of important tactics to remember when being involved…

    • 18258 Words
    • 74 Pages
    Powerful Essays
  • Satisfactory Essays

    Why We Buy What We Buy

    • 440 Words
    • 2 Pages

    advertisers have the best chance of arresting attention and affecting communication” says Jib Fowles in his piece “Advertising Fifteen Basic Appeals. Jib Fowles, Bergen Evans, and Stephanie Ericsson all are components of how one can understand why people tend to buy products, and what entices us to be moved by a single commercial. Certain aspects of a product can induce really anyone to by something, it can be based on language, lies or just the way they advertise anything. Language plays a major…

    • 440 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Why Should We Buy

    • 3035 Words
    • 13 Pages

    WHY WE BUY: THE PSYCHOLOGY OF SPENDING Why We Buy Tab le of Contents America – Spenders, Inc. Resource Management Who’s Pushing Your Buttons? Your Money Personality Spend on Saving Control Spending Know Yourself Appendix A – How Do You Manage Your Money? Appendix B – Instead of Shopping… 1 2 3 5 6 7 8 10 12 1 Why We Buy AMERICA – SPENDERS, INC. W hy we buy is a difficult question to answer. But, we have to start somewhere. Spending behavior is complex and many of us have never…

    • 3035 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    Why We Buy Summary

    • 620 Words
    • 3 Pages

    The book Why We Buy by Paco Underhill expresses massive depth in knowledge and understandings of their research on shopper’s behavior on why and how people shop. His company Envirosell, researched actual behaviors of each customer at stores, and by using their trackers, they recorded every detailed actions shopper made in the stores. This book was divided into five parts, the science of shopping, mechanics of shopping, demographics, dynamics of shopping and last the culture of shopping. It delivered…

    • 620 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Chapter one Abstract Chapter one of “Why We Buy” mainly talks about five points: 1) what is the research method of the science of shopping and how does it to work; 2) “Butt-brush effect”; 3) the placement of products can greatly influence sales; 4) Congestion is a killer to sales; 5) Interception rate and conversion rate. These phenomenons are the most basic elements knowledge of the science of shopping. The main idea introduces reader to the science of shopping. Research method of the science…

    • 990 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    for e xplaining in clear and witt y prose why my s hopping habits are no t all th at crazy. Now, pl ease tell my wife!" - Bob Gale. \\ rilerlprodu('er, Back to the FUlu re tril ogy " I'm in love . And if I didn't have a devoted hu sba nd , two kid s and a c ru shing mortga ge, J s wear I'd throw ca ution to the wind and run awa y with Paco U nd e rhill . .. fasc inating." - Rocky Mounlain News (De nv er) " Why We B uy is a funn y a nd insightful boo k for…

    • 62657 Words
    • 251 Pages
    Good Essays
  • Powerful Essays

    we are what we buy

    • 2002 Words
    • 6 Pages

    We are what we buy Ryan (Shizhe Ruan) 9067614 We live in a modern world where full of mass consumption, after industrial revolutions, the new technology allowed productive forces to be improved significantly…

    • 2002 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Everything can be broken down and resolved by science, even something as common as shopping. Why We Buy was written by author Paco Underhill, an environmental psychologist, in 1999. In Underhill’s book, he studies and records the behaviors of shoppers in multiple retail stores. Underhill’s goals are to aid in increasing sales for the store, to enhance the layout of the store, and to advance accessibly and comfort for the shopper. His book is a record of his findings and contains five sections. For…

    • 1494 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Why Buy Cigarettes

    • 667 Words
    • 3 Pages

    Why Buy Cigarettes How does an industry that has been singled out as containing deadly carcinogens encourage people to buy their product? The two ads I have chosen to analyze are about cigarettes. Both ads date back to the early 1980’s and are name brand cigarettes (Camel and L&M). They show people enjoying their cigarettes, expressing that smoking is a good thing and is a natural part of their life. Both ads we are viewing try to make it appear that everyone should be smoking. The Camel…

    • 667 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Why not to buy American

    • 677 Words
    • 3 Pages

    Unit 3: Biological Bases of Behavior 3B: The Brain 1. Lesion- Tissue destruction; a brain lesion is a naturally or experimentally caused destruction of brain tissue. 2. Electroencephalogram (EEG)- An amplified recording of the waves of electrical activity that sweep across the brain's surface. These waves are measured by electrodes placed on the scalp. 3. Computed Tomography (CT)- Series of X-ray photographs taken from different angles and combined by computer into a compsite representation…

    • 677 Words
    • 3 Pages
    Good Essays