The Retail Psychology of Impulse Buying

There’s a reason grocery stores keep all those little nuggets of temptation right up front at the register. The candy, the tabloid magazines, and the soft drinks all sit brightly colored and glossy at the spot in the store every customer has to pass through. The placement of these racks and display coolers is based on the psychology of impulse buying. Retailers should be familiar with some of these concepts to better place products in front of likely purchasers.

The first thing to remember is that, like in real estate, location is key. Stores have been doing this for a long time, but the understanding has gotten more and more sophisticated. Placing items frequently used together in close proximity simplifies the decision for customers who are more inundated with information now than ever before. One example of this that has been implemented in many areas with younger consumers is to place ping-pong balls and plastic cups near the beer section. The suggestion is clear and easy for purchasers who are far more likely to make the extra purchase than if they had to go seek out cups and sporting equipment separately.

Another important concept is that people buy things that make them feel better. That goes to the heart of impulse. Malcolm Gladwell said that there can be as much value in the blink of an eye as in months of rational analysis. With display coolers, for example, people aren’t often motivated to buy a beverage because of well thought out health benefits, or their rationalizing the need for extra sugar. They see the display coolers, brightly lit and stocked with instant gratification in liquid form and they make a move. The sight of the cooler triggered their desire. If retailers rely on the desire coming from within the consumer, studies show that they’ll move fewer units.

Simple but effective methods like placing the display coolers close to the register can help retailers move their products.