Consumer.ology

Please find my highlights from Consumer.ology by Philip Graves

The goals of market research are laudable: the better an organization understands its customers, the more likely it is that it will make good decisions and avoid bad ones. It’s just that the approach has been misguided. It’s no coincidence that fast-food companies often launch healthy products that customers don’t actually buy. In research, McDonald’s McLean, KFC’s Skinless Fried Chicken, and Pizza Hut’s low-cal pizza all appealed to customers, but in restaurants they failed.

It may surprise you to learn that any market research that asks people what they think, what they’ve done, or what they would like in the future is based on belief. Market research is a pseudo science – in fact it’s consumer.ology – and the beliefs under- pinning it are false.  We are Strangers to Ourselves. And the way in which we can be influenced without realizing that our thoughts have changed, while more than a little disconcerting, reveals what is required if understanding what people think is important to you and why the research process is frequently the cause of its own inaccuracy.

What people see, hear, and feel influences their behavior, but they can’t account for what has happened or how it has influenced them. However, this inability to under- stand ourselves doesn’t stop us answering questions in research. Diners at a restaurant in Illinois were given a free glass of wine to accompany their meal. In each case the actual wine used was the same (and inexpensive). However, different bottles were used to signal different wine qualities. Where the wine was perceived (purely from the label) as being better, people rated both the wine and the food as tasting better, and ate more of their meal. In a second study, people given a wine they believed (from the packaging) was from a superior region rated the wine 85% higher and the food 50% higher.14 How many of these peo- ple, if interviewed two weeks later in their local High Street, would have said: “I enjoyed the meal because the wine looked nice”?

Repeated studies might produce similar results, but that doesn’t mean that the original results are accurate. The fact that people react similarly to consistently executed questioning processes doesn’t tell us anything other than that the cause-and-effect relationship of such research is consistent.

Scientific scrutiny should be directed first and foremost at understanding consumers themselves, rather than merely at the process of summarizing their claims. It reveals what drives customer behavior, how anyone can obtain genuine insights into their own customers, and how much weight decision makers should attach to any claimed “consumer insight.”  

The more familiar and efficient the process is (or any one part of it is), the more likely it is to be driven by mental processes outside of conscious awareness. How much of an American consumer’s soda-buying process is not conscious? The consistent branding of the pack, selected from the same point on the shelf in the store that is visited every day or every week – there’s a strong argument to say that the purchase often functions just like that moment of the car journey, passing smoothly without conscious involvement.

Interesting Consumer Insights

  

More Choice – No Choice

Social psychologists Lyengar and Lepper carried out an experiment that illustrated how, in practice, more choice isn’t necessarily beneficial. They evaluated reactions to two tasting tables at a supermarket; on one they laid out 24 different jams and on the other just 6. While more people elected to stop for the wider selection (60% vs 40%), a dramatically higher proportion purchased from the selection of six jams, whereas only 3% did so from the larger choice. Put another way, less than 2% of people will buy from a display of 24 jams, but 12% will if you give them a choice of just six.

Safe Choice rather than best choice

Being mindful that people are primarily focused on not making a bad choice – in other words making a safe choice, rather than necessarily making the best choice. Why do new products often start out with a trial price? Because most marketers realize that a financial discount can not only help get the product noticed on the shelf, but also offset the unconscious risk associated with deviating from the usual choice. While there has been some debate whether what drives this is a fear of risk (loss aversion) or a preference for the status quo over change, the effective result remains the same: people are often very resistant to trying or doing something new, however logically compelling that alternative is. The conscious mind is far more receptive to new concepts than is the unconscious. New things arouse our curiosity. When the fear of missing out overpowers the fear of making a bad choice, people will buy.

Easy usually wins –Mental Fluency

Studies show that thinking uses glucose, so the more thought any activity requires the more tired we will become. We unconsciously like what’s easiest and most familiar; in other words, what our brains can process most fluently.

The crowd matters – social proof

It has even been argued convincingly that our ability to imitate is what distinguishes humans from other creatures.  When it comes to understanding consumer behavior, despite what most of us would like to tell ourselves, at an unconscious level we aren’t individual pioneers, we’re sheep.

What is first matters most – priming

Much as we may all like to pretend that we’re objective, well-balanced, and rational judges of what we encounter, research shows that we’re primed by our first experiences and, from there, go about seeking evidence that will fit with what we’ve decided is right.

Sound

Charles Areni, who specializes in studying the environmental psychology of commercial space, set up a test in a shop that sold wine, playing either top 40 or classical music. He found that people spent more than three times as much on a bottle of wine when classical music was playing compared to when pop music was selected.

Light

It is well documented that light levels have an effect on brain chemistry: light regulates the body clock and is associated with the release of serotonin, which plays an important role in the regulation of mood, anger, and aggression. However, only people who’ve been diagnosed with a condition such as Seasonal Anxiety Disorder might be expected to recognize that they’d feel better if they got more light.

Two marketing professors created four rooms that were identical except for the height of the ceiling, which they set at either 8 or 10 feet. By giving participants different tasks that required different types of mental processing and analyzing the results, they discovered that people in rooms with higher ceilings performed better at tasks requiring relational processing (to do with identifying and evaluating the connections between different sports), whereas when the ceiling was lower participants performed better at item-specific tasks. They also found statistically significant differences in how two products were evaluated.

Price is not as important as we have used to think

A 2001 study based on click-through analysis of North American web users found that only 8% were aggressive price hunters.

Tourism and Shopping : Realize and utilize the potential!

  

First Some Figures;

• Tax free shoppers spend 4 times more than other consumers
• 82% of Chinese travelers see shopping as preferred activity during travel
• Chinese tourists make up 29% of global luxury spending
• 1/3 of Russian travelers see shopping as a must while traveling
• 50% off all luxury goods are bought in connection with travel’ (Bernard Arnault LVMH)

For the brands in luxury segment and also for some specific locations sales to tourist may have a share of 50%. Cities such as London, Paris has always been the example shopping destinations for toursts but are we aware that Istanbul has become one of the top tourist destinations for shopping too? And do we have a clear plan to utilize this potential?

Lets identify our potential custoemr base;

Turkey is the only country that Chinese tourist don’t take a part in top 3.  Visitors from Middle-East and Russia are the top sources of revenue. 

Top 3 Sources of Tourism Revenue

Country	1st	2nd	3rd
Turkey	Iran	Saudi Arabia	Kuwait
Germany	China	Switzerkand	Russia
UK	China	Kuwait	Saudi Arabia
France	China	Egypt	Russia
Austria	China	Russia	Serbia
Italy	Russia	China	Egypt
Netherlands	China	Russia	Kuwait
Spain	China	Russia	Egypt

Below you can see the year to data fo tourism revenue shares by source countries. The trend shows that Middle –East visitors will be even more dominating the Turkish marketplace in the coming years.

	2015 YTD  Sales Amount%	% Change vs 2014
Iran	14	45
Saudi Arabia	14	115
Kuwait	8	55
Azerbaijan	7	-6
China	6	177
Russia	6	-19
Qatar	4	105
Turkish	4	20
Egypt	2	19
UAE	2	77
Kazakhstan	2	-5
USA	2	69
Lebanon	2	83
Libyan	2	39
Germany	1	18
Rest	25	32
Total		40

Russian tourist flow has decreased by 40% and revenues has decreased by 20% for all countries, which is an important loss to all host countries. 

What should we do to utilize the Potential?

• Investigate & explore current tourist spend in the stores and the city
• Define target cities (store + nationalities)
• Identify Calendar (important dates for holidays)
• Work on partnerships with tax free suppliers
• Training staff
• Placing Multilingual staff in key locations
• Apply in-store signing + tools (tax-free etc)
• Directly target the tourist present in the focus city via local print and partnerships (hotels, transport etc.)
• Leverage tools via tax free partnership to create more awareness and drive traffic

Is More Choice; No Choice?

Social psychologists Iyengar and Lepper carried out an experiment that illustrated how, in practice, more choice isn’t necessarily beneficial.  

They evaluated reactions to two tasting tables at a supermarket; on one they laid out 24 different jams and on the other just 6. While more people elected to stop for the wider selection (60% vs 40%), a dramatically higher proportion purchased from the selection of six jams, whereas only 3% did so from the larger choice. Put another way, less than 2% of people will buy from a display of 24 jams, but 12% will if you give them a choice of just six.
Ref: Consumerology by Philip Graves

The New Rules Of Retail

Robin Lewis states the 7 trends, that will shape the future of retail as below;

From Needing Stuff to Demanding Experiences: "The thrill of the hunt" offered to brand-savvy bargain hunters at T.J.Maxx and Marshalls, and the Apple Store turning electronics shopping on its head.

From Conformity to Customization: Specialized, personalized and localized niche brands like Nike ID and Keurig single-serve coffee machines begin to gain share from large megabrands, the continued growth of special sizes in apparel and footwear and the rapid growth of 3-D printing

From Plutocracy to Democracy: "Accessible luxury" for all: Missoni at Target, Vera Wang and Rock & Republic at Kohl's, Karl Lager “Lagerfeld at Macy's, Isabel and Ruben Toledo at Lane Bryant and the explosive growth of Michael Kors "affordable luxury"

From Wanting New to Demanding New and Now "What’s new today is cloned tomorrow", favoring fast-fashion brands like Zara and Forever 21 that create two new lines every week, the convenience of e-commerce, free delivery and neighborhood stores

From Self to Community Proliferation of social media, social shopping, community interests such as sustainability, global initiatives like human rights and safety; all are trends, no longer simply commercial promotional gimmicks

From Technology for Work to Technology for Life Technology enabling the blurring of lines between “life” and “work,” people are working during their “off” hours and playing during their “work” hours, getting what they need to get done whenever and however they can, using technology to save time.  

The creation of a new consumer segment, Luxury aspirants, drove the launch of many brands to cater to the up-market “yuppie” core of that segment. Brands such as Coach, Lacoste, Bloomingdales, Cusp (a Neiman Marcus spin-off), Dooney & Bourke, Michael Kors, Tumi, Tory Burch, Bonobos and others have successfully captured the contemporary, young, almost-upscale consumer, called HENRY (having enough, not rich yet).

With these trends in mind; he predicts that the traditional definitions of “retail” and “wholesale” will be irrelevant in the future because only those that transform their business models based on our three strategic operating principles will survive in the future.

The 3 operating principles are;

Neurological Connectivity : Today, as consumers expect the moon and stars "because they can" the retailer or brand must far exceed their expectations. They must co-create, with the customer, an experience that indelibly connects with their mind. It must be a holistic experience, consisting of pre-shopping anticipation, shopping ecstasy and consumption satisfaction, and it must be so emotionally compelling that the customer wants to repeat it upon the mere mention of the brand or retailer’s name.

Preemptive Distribution : This is the necessity of gaining access to consumers in front of the multiplicity of equally compelling products or services by existing precisely where, when and how the consumer wants you. Preemptive distribution relies on speed, agility and the ability to reinforce the neurological connection, or brand promise.  By definition, this requires an integrated matrix of all possible distribution mediums, the most important ones being those driven by the new, rapidly evolving technologies as well as distribution into faster-growing international markets.

Value-Chain Control : No consumer-facing business can achieve the highest levels of a neurological connection and preemptive distribution without complete control of its value chain, from creation all the way to consumption. This control is especially important in those parts of the chain that touch and connect with the consumer: namely, market research, where knowledge about the consumer and his or her dreams is determined; production and marketing, where the dream experience is created; and finally, the point of sale, where the experience must be competently delivered.

The retail or wholesale distinction will no longer be meaningful to consumers. Distinct brand names will provide the only worthwhile definition of value, whether it’s the nameplates of stores or the labels on the products in the store. The new business models for retailers and wholesalers alike will be those that can best implement the three imperative strategic operating principles.

He predicts that 80 to 90 percent of strong brands’ revenues will come from their own retail outlets. Finally, retailers such as Macy’s and others will have some form of leasing space to other strong retail brands, as many European and Asian retailers currently do. Perhaps department stores will invite powerful traffic-creating brands to operate “shops” in those categories in which they have been underperforming. For example, Victoria’s Secret, Soma and other brands might be more compelling in Macy’s historically share-losing intimates space. Not only would the department store gain the synergy of two go-to brands, they would also increase space productivity. And of course, the branded retail “renters” would get immediate preemptive distribution (department-store locations everywhere) for a relatively low capital investment. This synergistic strategy is already being employed by Nordstrom with Topshop, Brooks Brothers and “Bonobos shop-in-shops.

All new business entities will be strategically conceived to provide maximum access to consumers and positioned to gain maximum access for the business. Therefore, they will operate in a multitude of distribution channels (mobile, clicks, bricks and catalogs), with a multitude of different formats (from small, convenient and flexible to larger, all-inclusive destinations), and all will compete in as many consumer, product and retail sectors as the brand or service entity can credibly pursue. However, all retailers will fit into one of our three newly defined sectors;

the Commoditization sector;

the Omni-Brand to Consumer sector; or

the Liquidation sector.

Also, the back-end functions’ operations, production, logistics and distribution will be tightly centralized for maximum-scale leverage and productivity synergies, as well as to support the enormously complex and segmented front ends of their businesses.

Incidentally, this redefinition of retail favors what he defines as the Omni-Brand to Consumer model. Because of its optimum alignment with the New Rules, this model is best positioned among all sectors for preemptive distribution and the delivery of a neurologically connecting experience.

Finally, he predicts that e-retailing in all facets, including mobile commerce and the linkage to stores through omni-channel initiatives, will continue to grow. Every large chain will begin to see its stores as either a distribution center or an experiential palace. There will be no neutral ground. However the players that currently operate exclusively in this space, such as Amazon and eBay, will eventually open brick-and-mortar stores for the purposes of preemptive distribution and enhanced delivery of the neurological experience.  These competitors will also continue to redefine the value chain with a set of capabilities and relationships that will make the realization of same-day delivery a feature in every major metropolitan market and will therefore further challenge those stores without any clear point of differentiation.

He emphasizes the requirement of massive differentiation for a retailer or brand to survive. This differentiation has to exist throughout the entire business model, from sourcing to delivery, and most importantly in the eyes of the consumer. If you are not clearly differentiated, even unique, then you are vulnerable to extinction. The highlights below of the transformed traditional models encapsulate all the foregoing, and essentially represent the New Rules for successful change and the effective implementation of  three strategic operating principles

Rules for Transforming Traditional Retailers

Change the Retail Value Proposition: Become a branded neurological experience, not a store.

Adopt a New Structure: Reorganize around lifestyles.

Accelerate Private/Exclusive Branding or Lease Space to Compatible Brands:  Cede control to other powerful brands, but exercise total control over your own.

Preemptively Access Consumers with:

·         Larger urban “lifestyle experiential emporium”

·         Smaller freestanding neighborhood stores

·         Private branded specialty chains (e.g., INC and Arizona Stores)

·         New channels of opportunity (pop-ups, in-home, etc.)

·         Integration of all distribution platforms (clicks/bricks/catalogs)

·         Investment in new technological channels of distribution.

Rules for Transforming Traditional Wholesalers

Change the Wholesale Value Proposition: Become a portfolio of lifestyle-branded retail specialty chains providing neurologically connecting experiences.

Adopt a New Structure:  Reorganize around preemptive distribution strategies through all possible platforms and mediums (clicks, bricks, catalogs and more), including providing exclusive brands to transformed retailers and selecting compatible transformed retailers to lease space for total management and control of individual brands. Pursue cobranding joint ventures with compatible retail specialty chain brands. Create a clear distribution strategy that has exclusive, segmented product by retail partner and price point.

New Rule for E-Commerce and Mobile Pure-Play Brands

This newest and fastest-growing retail sector, which includes Amazon, Zappos, eBay, flash sites, social networks and the older QVC and HSN, must also transform its models to embody the three operating principles. The most successful brands, such as those just mentioned, are all striving to create great experiences as opposed to simply providing convenience. The newest rule for this sector will be driven by its need for greater preemptive distribution. This will mean faster and faster access through mobile purchasing and rapid delivery. He believes this will ultimately lead to e-commerce expanding its distribution to include brick-and-mortar stores, within which they can better provide the neurological experience, particularly for those products requiring a more high-touch experience such as apparel.

Regardless of operating on all distribution platforms, all will attempt to control, if not own, as much of the value chain as possible, from Amazon’s cloud to eBay’s PayPal payment system. All of this will be further intensified as Google, Facebook and others begin to enter the retail world at scale with even more diverse business models.

At the end of the day, those who succeed will be brand managers whose sole responsibility is to manage and control the preemptive distribution of their neurologically addictive and highly differentiated brand from its creation all the way through to consumption.”

 Source: Lewis, Robin. “The New Rules of Retail.” St. Martin's Press

Turkish E-com Retailing in 4 Slides

A short summary for Turkish Internet Retailing

Sources
TUSIAD Dijital Pazarın Odak Noktası: E-ticaret, Sinan Afra, 2014
Southern Europe Ecommerce Report 2014, www.ecommerce-europe.eu
UNCTAD Information Economy Report 2015

End of Brand Worship Era in Fashion

"It’s not enough to be fashionable – one wishes to appear intelligent as well!"

Chanel, Dior, Gucci and the others will continue to develop luxury as a business. At the same time, we are seeing a complementary reaction, which is that a consumer may accept paying for the latest very trendy Dior bag, that she’s seen in all the magazines and advertisements; but she’ll see no shame in going to Zara and buying a T-shirt for 10 euros, because it’s pretty and it’s a fair quality for the price. Then she may go to another store, a bit more expensive but not as well known, perhaps run by a young designer, where she’ll buy a skirt. And these items, when brought together, reassure her and send a message to others that she’s an intelligent consumer, not dazzled by marketing, in charge of her own image.’

In other words, the era of slavish brand worship is over The designer Alber Elbaz, of Lanvin, recently commented, ‘We’ve reached a turning point. Nobody wears logos any more. People aren’t hesitating to mix Lanvin with Topshop. Everything is becoming more democratic.’ 

From "Fashion Brands", Mark Tungate, 2004 

Seeing New Products in the Stores makes Consumers Happy:)

“Recent studies have shown that when consumers go shopping and discover something new, the brain releases dopamine and serotonin (chemicals associated with feelings of well-being, happiness, and addiction). As Dr. David Lewis, the director of Mindlab International, has said: "Shopping experiences trigger brain activity that creates these 'euphoric moments'™ But what is most interesting is that these 'euphoric moments' can be created by the frequency of new items in the stores and the expectation of finding something unexpected."

Could it be the main reason of Zara's success?:) 

From: Lewis, Robin. “The New Rules of Retail.” St. Martin's Press, 

FOMO : Fear of Missing Out

According to Robin Lewis; the reason of our addiction to our mobile phones is FOMO;

“a chronic condition called Fear of Missing Out, or FOMO, anxiety or worry that one might be missing an opportunity for social interaction, a novel experience or some other satisfying event. British psychologist Andrew Przybylski led a study that found that the less people felt autonomy, competence and connectedness in their daily lives, the more they felt FOMO. 

People high in FOMO were also heavy users of social networks, which provide constant opportunity to compare one's status with those of others, and to make sure that you are having as much fun and excitement as you perceive that others are having.”

Lewis, Robin. “The New Rules of Retail.” St. Martin's Press

Human Mistake is Tolerated; what is not tolerated is not to take responsibility for shortcomings!

On September 11, 2001, Midwood Ambulance Service employees responded to the terrorist attack on the World Trade Center in New York City. Shortly afterward, an e-mail surfaced, which reported,

“My family owns an ambulance service in Brooklyn, NY. . . . My uncles were at ‘Ground Zero’ during the attack, to help the victims. They donated their time to help with this crisis, as many New Yorkers did. A great number of people were in shock from the devastation. As many of you know, shock victims are supposed to drink a lot of water. My uncle went to the Starbucks down the street to get bottles of water for the victims he was treating. Can you believe they actually charged him for it! He paid the $130 for three cases of bottled water out of his own pocket. Now, I would think that in a crisis such as this, vendors in the area would be more than happy to lend a little help by donating water.”
The e-mail continued, “I love Frappuccinos® as much as anyone, but any company that would try to make a profit off of a crisis like this doesn’t deserve the . . . public’s hard-earned money. Please forward this e-mail to anyone you know and encourage them to do the same.”
Unfortunately, this e-mail was accurate. A Starbucks store staff had chosen to charge full price and not give away $130 worth of water during the September 11, 2001, tragedy. In addition, several efforts to get the matter resolved were mishandled. When the e-mail surfaced, Starbucks leadership did the right thing. Then president and CEO Orin Smith not only had a $130 check delivered to the ambulance company, but he called a representative of the business personally to apologize. Independently, the Starbucks stores located at Ground Zero were operating around the clock and they were providing free beverages and pastries to rescue workers and volunteers.

“At a corporate level, Starbucks was making contributions in excess of a million dollars to the national relief fund. But the bad news of the water sale certainly made a big splash in the pool of public consciousness. Starbucks leadership fortunately understood that most people are willing to forgive human error. What they won’t tolerate is a failure to take responsibility for mistakes or an unwillingness to resolve the shortcoming.
With the grace of competent leadership, Starbucks did not seek to scapegoat or place blame on the store staff who made the errant decision in an unimaginably stressful situation. Instead, Orin Smith understood something that most great leaders appreciate: when you are wrong, admit it, fix the problem, and stay the course in areas where you are making a positive difference.

Ideas to Slip on

- While it’s natural to avoid contact with detractors, much can be gained by welcoming them into the early stages of problem-focused discussions.

- It is essential to correct misinformation swiftly.

- When errors are made, it is important to take direct, unequivocal responsibility and follow up with corrective action.

 From: Michelli, Joseph. “The Starbucks Experience.” McGraw-Hill, 2007. 

Start with Why - Simon Sinek

 

From TED TALKS series; worth listening;

 

Start with Why - Simon Sinek

 

 

With Respect to Paco Underhill -II

What Do Shoppers Love?

What do shoppers love? A few important things, we've learned, such as:

Touch:  We live in a tactile-deprived society, and shopping is one of our few chances to freely experience the material world firsthand. Almost all unplanned buying is a result of touching, hearing, smelling or tasting something on the premises of a store-which is why merchandising is more powerful than marketing.

Mirrors:  Stand and watch what happens at any reflective surface: We preen like chimps, men and women alike. Self-interest is a basic part of our species. From shopping to cosmetic surgery, we care about how we look. As we've said, mirrors slow shoppers in their tracks, a very good thing for whatever merchandise happens to be in the vicinity. But even around wearable items such as clothing, jewelry and cosmetics, where mirrors are crucial sales tools, stores fail to provide enough of them.

Discovery: There's little more satisfying than walking into a store, picking up the (metaphorical) scent of something we've been hunting for and then tracking it to its lair. Too much signage and point of purchase display takes all the adventure out of a shopping trip; stores shouldn't be willfully confusing or obscure, but they should seduce shoppers through the aisles with suggestions and hints of what's to come.

Talking:  Stores that attract lots of couples, friends or groups of shoppers usually do very well. If you can create an atmosphere that fosters discussion of an outfit, say, or a particular cell phone, the merchandise begins to sell itself.

Recognition:  In that old TV show Cheers, the theme song went, "you want to go where everybody knows your name." This is a battlefield where the small, locally owned store can still best the national chains, and smart stores make the most of this advantage. Given a choice, people will shop where they feel wanted, and they'll even pay a lime more for the privilege. Even the smallest stores ·can build customer loyalty just by keeping track of what people buy and giving price breaks when appropriate. Our studies show that any contact initiated by a store employee-and I mean even a hello-increases the likelihood that a shopper will buy something. If the salesperson suggests a few things or offers information, the chances rise even higher. Of course, shoppers don't love pushy salespeople, so there's a line here.

Bargains: This seems obvious, but it goes beyond simply cutting prices. At Victoria's Secret, for example, underwear is frequently piled on a table and marked five pairs for $20, which sounds like a much better deal than the $5 a pair normally charged.

With Respect to Paco Underhill -I

Paco will be in Turkey for Local Chains Summit  (YerelZincirler Birliği) next week; 15-16 of April, an event to be followed certainly…

Please find some quotations below  from his book “Why We Buy?”

Advice for the Store Staff

Remember that more than 60 percent of what we buy wasn't on our list. This isn't the same as an impulse purchase. It's triggered by something proposing the question "Don't you need this? If not now, then maybe in the near future?" Use this feeling to boost your sales…

Offer help, try to get the stuff your customer needs to carry that limits her / his desire to put on the products, offer to put the coat/bag behind the counter....

Shoppers are more pressed for time than ever. They've grown accustomed to stores where everything for sale is on open display; and they expect all the information they need will be out in the open. Keep in mind while designing in store- signageand visuals.

Smile: Wal-Mart founder Sam Walton's homespun advice to retailers was that if you hire a sweet old lady just to say hello to incoming customers, none of them will dare steal.

Critical location Dressing Rooms : A shopper who talks to a salesperson and tries something on is twice as likely to buy as a shopper who does neither. Not only does shopper conversion rate increase by half when there is staff-initiated contact, it jumps by 100 percent when there is staff-initiated contact and use of the dressing room. 

Store Design & Signage

The Gap, Aeropostale and Anthropologie-all apparel store chains-put their discount sale products in the back left-hand corner of the store. They've trained their most veteran shoppers to visit the remotest corner of the store. Once they've gotten them to the back, their challenge is to make sure the pathway back to the front of the store is well merchandised and that at least some of the signage is facing the customer going back-to-front.

In the retail environment, a chair's main purpose is slightly different: When people go shopping in twos or threes, with spouses or children or friends along for the trip, seating is what keeps the non-shopping party comfortable and contented and cared for and off the shopper's backJ

Retailers should walk every foot of selling space asking this question: Can I stand here and shop without being jostled from behind? Any place where the answer is no is no place for merchandise requiring a careful look.

Aisles must also be wide enough for baby strollers. Adjacencies should be planned rather than accidental

For the most part, the men and women who design clothing stores do everything possible to allow us to touch all that's for sale. But then, when it's time to design the dressing rooms, they show how completely they misunderstand what happens inside that store. Where do they go wrong? They think of dressing rooms as bathrooms without the plumbing. They see them as booths where shoppers can strip, don the garment in question, emerge for a quick, dutiful glance into a mirror and then switch clothes again. They design dressing rooms with all the romance and glamour of changing stalls at public pools. It's the most misguided aspect of store architecture and design, a trade that at its best isn't terribly responsive to retailers or shoppers. They skimp on dressing rooms, I believe, because they don't want to "waste" space by making these rooms too large. They don't want to blow too much of the budget on rooms that will never be photographed by the fancier design magazines. In fact, the dressing room may be more important than the floor of the store. It's a truism that improving the quality of dressing rooms increases sales. It never fails. A dressing room isn't just a convenience- it's a selling tool, like a display or a window or advertising. It sells more effectively than all of those combined, if it's properly used.

Men & Women

86% of women look at price tags when they shop. Only 72% of men do. For a man, ignoring the price tag is almost a measure of his virility. As a result, men are far more easily upgraded than are women. They are also far more suggestible than women. 

Men now do more purchasing than ever before. That figure will continue to grow. As they stay single longer than ever, they learn to shop for things their fathers never had to buy. And because many marry women who work as long and hard as they do, they will be forced to shoulder more of the burden of shopping. 

Here's the actual breakdown of average shopping time from a study, performed at one branch of a national housewares chain:

Woman shopping with a female companion: 8 minutes, 15 seconds 

Woman with children: 7 minutes, 19 seconds 

Woman alone: 5 minutes, 2 seconds, 

Woman with man: 4 minutes, 41 seconds

A good general rule to design future: Take any category where women now predominate and figure out how to make it appealing to men without alienating women.

Competition

Today everybody is competing with everybody else, and so the threat can come from any direction. It is dangerously narrowminded for a store owner to believe that the only competition is from others in his or her category. .In truth, retailers compete with every other demand on consumer time and money. 

if the experience of spending twenty minutes of unused lunch hour browsing in a computer store is more enjoyable than visiting a bookstore, then it becomes likely that some software will be sold-and impossible that a book will be. The era of the visionary retailer or the manufacturing king is over. In the twenty-first century the consumer is king. Just as fashion comes from the street up, the world of retail is about following shoppers where they are going.