Friday, July 17, 2009

When Space is Tight, Show Product Differences

For a variety of reasons related to the bad economy, you could find yourself needing to sell in more crowded circumstances. It might be because you're forced to move to a smaller store, but you're wanting to present customers the same product mix within that less spacious footprint. It might be because you were able to make a great buy on merchandise from a retailer or vendor who has money problems, but now you need to decide how much of the new merchandise you can fit on your current shelves. Or the selling in more cramped quarters might be because your traffic flow has increased substantially as other retailers have gone out of business.
      When you find yourself conducting retail sales in tight quarters, you might be tempted to cut back on the breadth and width of your product selection. Before doing this, please note the findings from researchers at Columbia University and University of British Columbia: On average, when shoppers from Western cultures are in tight spaces, they want greater variety among products. If they have fewer choices, they'll become less comfortable. The trouble here is that uncomfortable shoppers leave the store sooner and resist returning to shop with you again.
      So what to do? The answer comes from another research study, this one done at the University of Pennsylvania. Shoppers who initially see a limited variety in the breadth and width of merchandise become much happier, and therefore stay around longer to shop, when the retail store helps them recognize the differences among the products. The shoppers don't feel so trapped by limitations on their freedom to choose.
      In signage and in customer-salesperson conversations, you'll want to categorize products because customers seek categories. But especially in the more cramped store, also highlight the differences among the product offerings.

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