Exercise 18

987 Words Sep 8th, 2013 4 Pages
1. What are the advantages and disadvantages of grid and free-flow layout arrangements?

| ADVANTAGES | DISADVANTAGES | GRID LAYOUT | Easy to locate merchandiseCost-efficientEasily accessible for customersCustomer familiarityEase in cleaningSimplified securityPossibility of self-service | Limited browsingLimited creativity in décor (Plain and uninteresting)Stimulation of rushed shopping behavior | FREE-FLOW LAYOUT | Incread creativity in decor items to display?sed impulse buyingVisual appealFlexibility | Possible confusionWaste of floor spaceDifficulty in cleaning |

2. What psychological effects of a pharmacy layout may influence customer-buying behavior?

* Value/Fashion image – Presentation of the product influences
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It’s all in the display. When an item, such as a watch or a scarf, is displayed in a glass case, it implies luxury. An item in a glass case with a lot of space around it implies real luxury.

“Bazaar? Behavior”. Even “high fashion” stores aren’t above using the “dumping” method to display gloves, leather goods, scarves and other small items the same way bargain stores do. These bins have a way of suggesting a “good buy”.

Color is king. Retailers believe consumers are more apt to buy clothes that appear in full size and color assortments.

Suggestion positioning. Once the customer has already purchased one item, it’s easier to sell an additional item. Thus, apparel retailers strategically place impulse buys like hair bows and costume jewelry by the cashier the same way supermarket checkouts display candy and magazines.

7. What are the characteristics of effective point-of-purchase displays?

Marketing materials or advertising placed next to the merchandise it is promoting. These items are generally located at the checkout area or other location where the purchase decision is made. Well done point of purchase (POP) displays will draw consumers to one product over another, or give one store the appearance of being more organized and clean.

For example, the checkout counters of many convenience stores are cluttered with cigarette and candy POP displays.
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