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Enhancing the In-Store Marketing Environment
Past research has found a relationship between exposure to in-store marketing activities and consumer purchase behavior. From an in-store marketing perspective, a retailer may distinguish itself in a variety of ways, including product assortment, price and promotional strategy. Retail Digital Signage enhances a retailer's ability to communicate about any or all of these elements to customers in the store, as well as to day-part messages to appeal to specific customer segments and to adapt to local environmental conditions, such as changing weather patterns of the local girls' club bake sale.
For the most part, information relative to store merchandise is limited to product packaging, visual merchandising and store personnel. Retail Digital Signage offers the opportunity to expand the amount and type of information provided to a customer due to its dynamic nature. In addition, in-store promotional activities such as store coupons, graphics, displays, etc. are static in nature. Retail Digital Signage, on the other hand, is dynamic in nature, thus adaptable to changing market conditions, environmental factors, etc. Further, Retail Digital Signage messaging can be enhanced and varied to stress merchandise selection that is more susceptible to impulse purchase.
Inman, Ferraro and Winer determined that 59% of store purchases were unplanned, 30% were planned and that the remainder were either generally planned or brand switches. Expanding upon this, Inman's developmental model details the consumer in-store purchase decision-making process by identifying consumer-specific factors (i.e. deal proneness, household size, trips per week, age, compulsiveness, gender, purchase involvement, income, etc.), and shopping-specific factors, which can be affected by a retailer, were found to exert a greater average impact on in-store decision making than consumer-specific variables, which are not susceptible to retailer influence. The following factors, the order noted, most impacted the shopping-trip specific factors: number of aisles shopped, trip type, shipping party size, use of a list, and display type. According to Inman, retailers should "encourage consumers to shop as many aisles as possible and provide exposure to as many product categories and in-store displays as possible." Messages delivered by Retail Digital Signage should thus focus upon influencing shopping trip specific factors.
Accepting that significant portions of consumer purchases are impulse buys determined in the store, Retail Digital Signage delivered messages offer a compelling medium to advertisers. Further, current research supports the proposition that Retail Digital Signage influences consumer shopping behavior in the store. In the grocery store messages were found to have a 10% - 11% impact on sale over and above any other promotional activity that may have been occurring in the store during the test period.
-source: Platt Retail Institute
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Additional Information
Contact Scala about your end-to-end software solutions for creating and controlling Electronic Display Networks, whether you call it Dynamic digital signage, Narrowcasting, Captive Audience Networks, Kiosks, Point-of-Purchase Displays, Digital In-Store Merchandising, Out-of-Home Media Networks, Place-based Advertising, Display Marketing, Retail Digital Media Networks, Datacasting, Electronic Billboards, The Outernet or any of the other terms in use today. Scala conducts business through a worldwide network of Value Added Resellers. For more information on what this emerging industry is coming to be named, you can see how other people found this page. ©1993-2007 Scala, Inc. Scala, InfoChannel, and the Exclamation Point Logo are registered trademarks of Scala, Inc. All other trademarks are the property of their respective organizations. To see all the content on our Website, click Sitemap or check our blog for the latest updates. Read our Privacy Policy.