Consumers’ Psychology in a Supermarket by Amanda Wang Xue

INTRODUCTION

The first supermarket was opened in the America in 20 century. In 1990, the first Chinese supermarket was born in Guangdong. Its name is Mejia supermarket.From 1996, there are lots of world-class large supermarkets come in China .like Wal-Mart. Today, there are 47 Wal-Mart’s supermarkets in China At the same time; there are some monomers or regional chain stores were developed in the Chinese cities.(Shanghai HUALIAN supermarket, ZHONGBAI supermarket in Wuhan, etc). In 2005, the supermarket’s total sale about 25%in the social retail. Follow on December 11, in 2004, the Chinese retail trade was comprehensive opening; competition between supermarkets became more intense.
Now follow to see the distribution of big type of supermarkets in China. There are the most supermarkets in some city, the gradation are Shanghai, Beijing, Wuhan, Shenzhen, Tianjin, Qingdao, Shijiazhuang, Taiyuan, Dalian. The total percent of the five supermarkets (Shanghai, Beijing, Wuhan, Shenzhen, and Tianjin) are 48%.

In 2005, there are some supermarkets are very successful (Wal-Mart, Carrefour, METRO), there are also some supermarkets are very worried. The Su Guo is a famous supermarket in Jiangsu province, the general manager said: now the supermarket wants to be successful in China, they must “intensive cultivation”, improve scientific management and analyze consumer’s psychology.

Today, people go shopping in the supermarket becomes people’s habit in the daily life. The competition is too furious in the different supermarkets. We know, there are many supermarkets in China.

The main objective of the paper is to explore consumers’ psychology and analyze consumers’ actions to the supermarket. Then according to the data to help the manager of supermarket to change environment, display products, design interior supermarket. The supermarkets can get more profit through the useful ideas. Let the consumers feel comfortable and amused when they go shopping in the supermarket.
If the supermarket does these very well, it will have ability to win its competitors in the supermarket’s competition.

REVIEW OF LITERATURE

Wal-Mart set up in 1962. It is the largest supermarket in the world. Now there are more than 5000 Wal-Mart’s supermarkets in the world. The total number of employees’ are1, 600,000. Each week, there are about 140,000,000 persons go shopping in Wal-Mart.In 2004, total sale of Wal-Mart are 285,200,000,000. Why Wal-Mart can become successful in the world. Now follow me to see it. According to the marketing research, 1/10 profit come from common consumers, 3/10 profit come from satisfied consumers, 6/10 profit come from loyal consumers If an enterprise want to get more profit, the enterprise must try to let the consumers feel satisfied. (Zhao, 2002)
In Wal-Mart, one of the successful factors is know consumers’ needs. According to the marketing research, there are 70% do purchase decision inside the supermarkets. So the supermarkets need to promote consumers to impulse buying.
Wal-Mart use good service attract consumers, they do not just use less price.

According to the marketing research, Wal-Mart find Chinese consumer’s characteristic.
In generally, Chinese always go shopping on foot, Chinese refrigerators are smaller, so they do not buy lots of products on each time. But about one or two days, they go shopping more often.
So the food section is very large in the supermarket.
The manager of Wal-Mart research display products on the center space of supermarket can attract consumers.
In Wal-Mart, there is different type of products cards in the shelves.
There is large price’s brand on the shelves that near walls. There are some small products hanging near the shelves. Fresh meat and vegetables put in the transparent box. If the employees sell cooked food in Wal-Mart, they must wear hats, respirator, and gloves.

There is a clear brand remind consumers pay attention to safe.
http://www.liaonan.com.cn/ziden/com/shuangzhou/show.asp?ID=10207&menuid=4560&ParentID=&qufen=

According to the consumer’s mind, Wal-Mart tries to display products, purchase products. Provide service. So the consumers will feel comfortable when they go shopping in Wal-Mart.

In the Wal-Mart, we can see there is a popular saying: you will feel satisfied for each product in Wal-Mart. The manager of Wal-Mart always point out the products on the shelves, the manager request the employees must display the products from the consumer’s angle. The managers must know the consumer’s psychology when they purchase.(Wang, 2000)

Wal-Mart has itself two theories: firstly, consumers always are right. Secondly, if you have some question, please abide the firstly.
So Wal-Mart provides good service to consumers.
Smile inside 3 meters

Wal-Mart has a clear regulation: employees must smile when they see consumers inside 3 meters. Because Chinese people do not like smile, Wal-Mart provides a slogan: every day, employees must smile to more than one consumer.The Wal-Mart’s employees need to show 8 teeth when they smile to consumers.
Retail amusement
Wal-Mart provided performing space to college; organize some interesting activities to old denizens. Welcome to the denizen come here feast free air-condition who live near Wal-Mart. It can help Wall–Mart have a good visualize to people. Let the relationship between Wal-Mart and consumers become more harmonious.(Robert Slater.2001)
Wal-Mart, Carrefour they are successful supermarkets. About their price, they pay attention to consumer’s psychology. They use price’s skill very well, actualize perfect management of price.
Michael Curran (people call him” the father of supermarkets”). He has a method about fix price. There is 27% products sell with primary price. Supermarkets sell 18% products with 5% more than the primary price. They sell 27% products with 15% more than primary price. They sell 28% products with 20% more than primary price. The average profit is 9%. (Wang, 2000).
We know Wal-Mart provide” Par value on every day.
When people talk about Wal-Mart, we will remind the popular saying. It attracts lots of consumers to purchase in Wal-Mart. Why it can get successful? Wal-Mart knows consumers mind. Save money is an important factor when people go shopping.
In the products of high region, the successful supermarkets 10% products keep cheaper. If consumers see that, they will think all the products are cheaper, so they will buy more, Even if some product’s price is cheaper. It can improve supermarket’s visualize, promote other 90% sell better. It’s an efficient promotion. (Xiao, 1998)
We can see Wal-Mart has some change, Eg: it changes blue and gray exterior become while and red color. The aisle become wider, the shelves become shorter.
Consumers can find cosmetic and medicine near food and beer. According to the marketing research, many people want to find these in the supermarket,
Now, it’s earlier to find in Wal-Mart. There is unattached space to payment in the clothing’s region. It also has more humanity and more secret fitting room. (http://www.zgad.net/chal/ksxf/200605/6811.html)
There is an interesting thing. The supermarket will display some baby’s diaper near beer. It is steady for young fathers. May be a wife request her husband buy some diaper when he go to supermarket. But we know, most of time, the young father does not used to his new status. They always forget to buy diaper to his baby. But he dose not forget to buy beer. So this kind of display can improve the quantity between two types of products.

In one large supermarket, beer and diapers display in the same shelve. Both of them sell better than before. That is the true thing, it happened in Wal-Mart.
http://tech.tom.com/1121/1794/2005517-199690.html

RECOMMENDATIONS

These years, because the products are very abundant, the relationship between demand and supply has some change, it forms seller’s market become consumer’s market. Now people are very busy every day. The psychology of consumers has different. Many people go shopping in the supermarket in each weekend.

In fact, we always buy lots of products expect plan when we go shopping in the supermarket. Do you know the reason?

There is also has an interesting position, people always like go to the same supermarket. Even if it does not cheaper than the other and the products is similar. Does it have some secret in there?

Because the manager of successful supermarket knows better than the consumers do how they will behave when consumers enter a supermarket. Where you will walk, where you will look, what will make you buy one product rather than another?
Where is the suitable entrance to the supermarket?
What does the supermarket display near the entrance?
Where is the suitable position to display basic food like sugar and tea?
Where do staffs put large quantities of a product that they want to sell quickly?
Does consumer like the shelves full at all times?

In my opinion, the smart managers know all of these questions clearly and they can solve their problem very well.

When consumers go into a supermarket, they naturally look to their left but move clockwise, towards the right. So the supermarket entrances are usually on the left of the building, (Andy Hopkins, 1996)

All the consumers like walk on the right, and most of people usually use right hand when they go shopping. So if the supermarket wants to sell some products very well, they’d better display the products on the right position that the consumers always stand. (Smith Li, 2004)

In the supermarket, the layout is designed to take shoppers around the store, aisle after aisle, from left to right. Then customers will pay attention to all the products. (Jocelyn Potter, 1996)

Have a comfortable disposal is very important. For example, wide aisle and the aisle do not have fraise. If there are lots of fraise on the in the aisle, the consumers must be careful their feet. So they do not have energy to pay attention to the products seriously. (Tom, 2004)

Fresh fruit and vegetables area displayed near supermarket entrances. This gives the impression that only healthy food is sold in the shop. Basic food that everyone buys, like sugar and tea, are not put near each other. They are kept in different aisles so customers are taken past other attractive foods before they find what they want. In this way, shoppers are encouraged to buy products that they do not really need. (Andy Hopkins, 1996)

According to the marketing research, just have 1/5 customers can see each kinds of products in the shelves in the supermarket. The product’s best sight extension is from eye level to person’s knees. So if the supermarket want to promotes some goods, it‘d better put them in here. (Tony, 2004)

One best-selling position for products is at the end of aisles, because shoppers slow down to turn into the next aisle. Another is on shelves at eye level. Supermarkets are paid by food manufacturers to put their products in each of these high –selling places. (Jocelyn Potter, 1996)
Lay out some products at each port

When shoppers go through at the end of aisle, they will go to port naturally. So if the supermarket put some goods in port, it is easy to see them distinctly. Eg: in the supermarket, we always can see some drinks or biscuits (like Oreos) in the port. (Smith Li, 2004)

Sweets are often placed at children’s eye level at the checkout. While parents are waiting to pay, children reach for the sweets and put them in the trolley. (Andy Hopkins, 1996)

More is bought from a fifteen-foot display of one type of product (Eg: cereals, washing powder) than from a ten-foot one. Customers also buy more when shelves are full than when they are half empty. They do not like to buy from shelves with few products on them because they feel there is something wrong with those products that are there. (Jocelyn Potter, 1996)

There is a universal thing always happened in the supermarket. Some shoppers pick some products then turn around and go back. So supermarket can put the most attractive products in the middle of aisles. (ibid)

New complementary ideas

There are some products very cheap; sometimes they are sold heaper than their cost.
What’s the reason? Because this kind of product’s profit is very limited, sell more quantity, earn more. Decrease the price can attract people to purchase.
Sometimes when the consumers find these products are very cheap in a supermarket, they will think all the goods are cheaper than the other supermarket. So next time, people also go shopping in here. It’s wrong. The supermarket must have some products are more expensive. There is a strategy to supermarket. Give up small profit, seek big profit. (Source: http://blog.sina.com.cn/u/4919afb9010002w9 )

When shoppers go through at the end of aisle, they will go to port naturally. So if the supermarket put some goods in port, it is easy to see them distinctly. Eg: in the supermarket, we always can see some drinks or biscuits (like Oreos) in the port. (Smith Li, 2004) Sweets are often placed at children’s eye level at the checkout. While parents are waiting to pay, children reach for the sweets and put them in the trolley. (Andy Hopkins, 1996) More is bought from a fifteen-foot display of one type of product (Eg: cereals, washing powder) than from a ten-foot one. Customers also buy more when shelves are full than when they are half empty. They do not like to buy from shelves with few products on them because they feel there is something wrong with those products that are there. (Jocelyn Potter, 1996) There is a universal thing always happened in the supermarket. Some shoppers pick some products then turn around and go back. So supermarket can put the most attractive products in the middle of aisles. (ibid)There are some products very cheap; sometimes they are sold heaper than their cost.What’s the reason? Because this kind of product’s profit is very limited, sell more quantity, earn more. Decrease the price can attract people to purchase.Sometimes when the consumers find these products are very cheap in a supermarket, they will think all the goods are cheaper than the other supermarket. So next time, people also go shopping in here. It’s wrong. The supermarket must have some products are more expensive. There is a strategy to supermarket. Give up small profit, seek big profit. (Source: )
Color

The color of shelves, we’d better choose white or green. It can let people feel farer, and people will feel area is bigger. The supermarket’s exterior can colorful, it can attract people come in. interior supermarket can choose fresh and bright color. Let consumers feel comfortable and commodious. In generally, the color of ceiling will choose high reflected. In order to avoid the ceiling attract consumer’s sight. (ibid)
Bright ray is very important. It can make products look more beautiful. Bright ray also make consumers feel happy when they go shopping. (ibid)

The supermarket always put some chew gum or Coca Cola near the exit. We know, wait payment need some time, during these time, many shoppers will choose these goods naturally. Even if they don not need them. (ibid)

According to the marketing research, there are 86% female will see the price when they go shopping in the supermarket, there are 72% male will see the price. (Tom, 2004)

We can see, if a child goes shopping with his father, the child will earlier get favorite things than he goes shopping with his mother. If one child wants to buy favorite sweet, most of time the father does not refuse.

In generally, when the female go shopping with male, the male will pay money naturally. May be men do not like go shopping, but they like the feeling when the payment. Payment can increase their responsibility. So there is a popular saying about business: sell to female, close to male.

We know, baskets and trolley are necessary in the supermarket. Many supermarkets put them near the import. But some consumers do not pay attention to them when they just go into the supermarket.

According to the marketing research, there is about 60% consumption over the project in the supermarket. Some shoppers just want to buy little products when they come in. But when they go shopping for a moment, they discover just use two hands are not enough. At this time, they need a basket or vehicle. So if there are over 3 products on a consumer’s hand, the workers need to give him a basket. At this time, if the consumer can not find the baskets, may be he will stop to purchase and leave immediately.

The height of baskets need to over 1.5 meters, it can avoid consumers to bow. And let consumers easy to find them. (Smith Li, 2004)

Put some poster with big ，clearly words and colorful can attract consumers.
Eg: Wal-Mart has a popular saying: everyday is the cheapest. Wal-Mart put it on the plastic package. Is it all the products are the cheapest? Nobody is care of that. But the saying attract lots of customers come to Wal-Mart.

Through scent attract person to purchase

Bright ray is very important. It can make products look more beautiful. Bright ray also make consumers feel happy when they go shopping. (ibid) The supermarket always put some chew gum or Coca Cola near the exit. We know, wait payment need some time, during these time, many shoppers will choose these goods naturally. Even if they don not need them. (ibid) According to the marketing research, there are 86% female will see the price when they go shopping in the supermarket, there are 72% male will see the price. (Tom, 2004) We can see, if a child goes shopping with his father, the child will earlier get favorite things than he goes shopping with his mother. If one child wants to buy favorite sweet, most of time the father does not refuse. In generally, when the female go shopping with male, the male will pay money naturally. May be men do not like go shopping, but they like the feeling when the payment. Payment can increase their responsibility. So there is a popular saying about business: sell to female, close to male. We know, baskets and trolley are necessary in the supermarket. Many supermarkets put them near the import. But some consumers do not pay attention to them when they just go into the supermarket. According to the marketing research, there is about 60% consumption over the project in the supermarket. Some shoppers just want to buy little products when they come in. But when they go shopping for a moment, they discover just use two hands are not enough. At this time, they need a basket or vehicle. So if there are over 3 products on a consumer’s hand, the workers need to give him a basket. At this time, if the consumer can not find the baskets, may be he will stop to purchase and leave immediately. The height of baskets need to over 1.5 meters, it can avoid consumers to bow. And let consumers easy to find them. (Smith Li, 2004) Put some poster with big ，clearly words and colorful can attract consumers.Eg: Wal-Mart has a popular saying: everyday is the cheapest. Wal-Mart put it on the plastic package. Is it all the products are the cheapest? Nobody is care of that. But the saying attract lots of customers come to Wal-Mart.
When you go shopping in the supermarket, you smell fragrance of bread abruptly, what’s your feeling?

At this time, I think the fragrance of bread will attract many consumers to purchase, even if they do not want to buy bread before they enter the supermarket.
Smart businesses do not ignore scent of customers.

People walk quickly through narrow aisles, but they move more slowly in wide aisles and give more attention to the products.

The supermarket can some slow music, the consumers can feel relax when they go shopping. It also can help the footsteps of consumers become slower. We know the people stay in the supermarket longer; they will have possibility to buy more products.

Each day, the supermarkets can play different music in different times. In the morning, the supermarkets can play some amused music when the supermarkets just open. When it is time to close the supermarkets, it can play send off music. This kind of must is very slow. When the weather has some change, the supermarkets can play prompt sentence to consumers. It can make the relationship between consumers and the supermarkets become nearly.

When you go shopping in the supermarket, you smell fragrance of bread abruptly, what’s your feeling? At this time, I think the fragrance of bread will attract many consumers to purchase, even if they do not want to buy bread before they enter the supermarket.Smart businesses do not ignore scent of customers. People walk quickly through narrow aisles, but they move more slowly in wide aisles and give more attention to the products. The supermarket can some slow music, the consumers can feel relax when they go shopping. It also can help the footsteps of consumers become slower. We know the people stay in the supermarket longer; they will have possibility to buy more products. Each day, the supermarkets can play different music in different times. In the morning, the supermarkets can play some amused music when the supermarkets just open. When it is time to close the supermarkets, it can play send off music. This kind of must is very slow. When the weather has some change, the supermarkets can play prompt sentence to consumers. It can make the relationship between consumers and the supermarkets become nearly.
The supermarkets also can use radio to introduce some products or some promote activities to consumers.
The supermarkets has a cleanly environment is necessary. Every day, cleaner must clean the supermarket on time. Cleanly environment can bring good purchase mind to consumers. It also can let consumers stay supermarket with long time. Stay longer mean has more possibility to buy more products in supermarkets.
According to marketing research, when the supermarkets play the French music, the French wine sell is better than German. When the supermarkets play German music, the German beer sell is better.

Provide some products to tryout

In the supermarket, we can find some packages of goods are broken. It is a losing to supermarket. What’s the reason?

We know, people usually want to tryout the products by themselves before they buy them. Do not try to use some special package to prevent to try them. It is useless. It does not encourage consumers to purchase but it can increase the curiosity to tryout by stealth. So the supermarket provides some products to tryout are a good idea.

CONCLUSION

Today, psychology is very important to business. If one business wants to become successful, He needs to realize the psychology of consumers, the psychology of competitors, and psychology of colleagues and so on. Today the technology develops very fast. In the market, the products are similar; many businesses can provide good products and wonderful service to consumers. In my opinion, today most business’s competition is psychology. Which business knows the psychology better, that business can become successful.Consumers are god. The business’s production has worth when the consumers buy your products, because consumer’s purchase can bring profit to company. Essential objective of one company is getting more profit. Know consumer’s psychology is necessary step to one successful business.
Smith Li (2004) why we buy. 1^st ed.
Zhong Xing press

Andy Hopkins, Jocelyn Potter (1996) Look Ahead. 4^th ed.
Longman Asia Limited and Shanghai Foreign Language Education Press
Robert Slater. (2001)Wal-Mart’s dynasty.4^th ed. Zhong Xing Press

Zhang Fan Yu (2002)Magnate of retail trade. 1^st ed.
Dalian press

Xiao Ye, Wang Xiao Dong (2000) Competition to Wal-Mart. 5^th ed.
Changchun press

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August 29, 2006. Uncategorized.

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One Response to “Consumers’ Psychology in a Supermarket by Amanda Wang Xue”

Dr. Chan Says:
September 1st, 2006 at 2:01 am
The paper does shed light on the importance of consumers’ psychology and how the structure of the supermarket can affect its well-being and profits.

Good examples were given to explain how it can affect.

I do wonder whether they are any cultural differences in how things are being place in a supermart in China, as compared to one in the Middle East. This is something the author can explore in future articles.

Overall, an interesting read with original thoughts and ideas!

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Consumers’ Psychology in a Supermarket by Amanda Wang Xue

One Response to “Consumers’ Psychology in a Supermarket by Amanda Wang Xue”

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