Product Placement and the Perception of Value

Research

A group of studies has examined the effect that the location, density, and variety of products in a retail environment can have on the customers perception of value. A classic study on aisle design determined that aisles with a low variety of products and a correspondingly high volume of each item conveyed a “lower price image” among consumers than an aisle with a great variety of items of limited quantities.

Relatively dense retail suggests discounted merchandise.

Another study published in Psychology and Marketing evaluated how retail density and music tempo affected shopper perceptions of the store. When stores had a high retail density (more ‘stuff’ per square foot) consumers rated the experience more highly when low-tempo music was playing. Conversely, consumers preferred high-tempo music in when the stores had low retail density.

A more spacious distribution of products suggests higher-end, luxury goods.

Finally, another group of researchers investigated the effect of retail density along human (how many people are in the store) and spatial (how much ‘stuff’ is in the store) scales. “Managers should particularly avoid spatial density when human density is high (e.g., in the weekends or at rush hours). Practically, this means removal of physical barriers or obstacles (e.g., racks or displays) in aisles as much as possible in these times. And with respect to permanent physical barriers in passageways [such as columns] . . . it would certainly be wise to reserve those aisles for products low in demand and thus attracting fewer consumers as opposed to aisles with popular products where density will be generally higher.”

Implications

What the above studies implicate in aggregate is that it’s possible to affect consumer perceptions of value via environmental modifications. In other words, the way a store is laid out can suggest to a customer that the products within the store are luxurious or a great discount. In this way it’s possible for an architect or design to contribute to a store’s brand in ways beyond simple aesthetic improvements or graphic design.

Citations

Eroglu, Sevgin et al. “The Interaction of Retail Density and Music Tempo: Effects on Shopper Responses”. Psychology and Marketing. Volume 22 Issue 7, pages 577-589.

Rompay, Thomas van, Mirjam Galetzka, Ad Pruyn and Jaime Garcia. 2008. “Human and Spatial Dimensions of Retail Density: Revisiting the Role of Perceived Control”. Psychology and Marketing, vol. 25, no. 4, pp. 319-335. via RDC.

Smith, Peter and David J. Burns “Atmospherics and Retail Environments: The Case for the Power Aisle”. International Journal of Retail & Distribution Management. Vol. 24, Issue 1: pages 7-14.