Why We Buy: The Science of Shopping was recommended in The 100 Best Business Books of All Time, and it sounded interesting so I checked it out from the library. Paco Underhill is the founder of Envirosell, a retail research and consulting firm with tons of big-name clients. And while Underhill wrote this book for retailers, but it is equally entertaining from a shopper’s perspective. Read it, and you won’t be able to look at a store the same way again.
It’s a short book at 240 pages, but Why We Buy covers a lot of ground. Underhill and his team of researchers have spent years (decades now) observing how shoppers interact with the retail environment and they’ve collected obscene amounts of data and video tape — literally creating a science around the fascinating world of commerce. What they found was that there a dozens of factors that can impact a purchase decision, some more obvious than others.
Next time you go shopping pay attention to some things. Is there signage immediately inside the door? If so it is poorly placed: most people blow right past it without noticing. What merchandise is just past the entryway and to the right? This is prime real estate and should be filled with high-margin, featured products. Do you spend more time shopping when you’re alone or with someone else? Do you find yourself buying more after talking with an employee? Of the clothing articles you try on, how many do you buy?
Some very interesting tidbits in here. Like how Blockbuster started “spiking” the cart of recently returned videos with older movies to encourage multiple rentals, and rentals of videos that had been paid for years ago. Or like how Victoria’s Secret sold more underwear by putting out a big table display and advertising 4 pairs for $20. The normal price? $5 a piece.
I had the 1999 version of this book, and am glad to see a 2008 version was released with an updated Internet sales section. The 1999 Internet section leaves a lot to be desired, much like online retail did 10 years ago. Assuming the updated version follows the same insightful storylines as the rest of the book, it should be worthwhile reading.
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