Thursday, March 6, 2014

Store Lay Out and Impulse Buying

I was watching several supermarket psychology videos in about store entrances, lay-out and impulse buying. Store owners usually design the lay-out of the shelves and the display of the merchandise in a way that allows people to walk through most of products in the store and specific goods that they want to sell more. The lay-out of the shop will greatly affects the number of goods which people will buy. People who walk through certain products may purchase goods that they did not plan to buy when they were still at homes. This unplanned decision is also called impulse buying or impulse purchase. Another approach that retailers use to sell certain products to customers is by putting them on the shelves or tables near the cashiers. All of the customers who walk to the cashier area will see these products and may decide to buy them.
Impulse buying can also be increased by inside marketing strategy. Banners that exhibit new electronic products can be placed at the entrance of the stores to attract the attention of customers.
In terms of online stores, banner ads and text links can be put on website area that is called above the fold. This is the area in the website which visitors can see directly when opening the sites without have to move the scroll bar of the computer or tablet. To enhance the advertisement performance, the banners can be designed with combination of moving texts and images. The use of Adobe Flash software for designing the ads will yield in attractive banner ads that can increase impulse buying of an online store.

Wednesday, March 5, 2014

Profit Margin of a Bookstore

Most of the brick and mortar bookstores charge profit margins that are higher than supermarkets and grocery stores. Books are now available in electronic formats and can be sold throughout the world through online shop. Electronic books are cheaper because they do not need paper. Conventional books can be sold with profit margin as low as 30%. If the books are printed in colors, their prices will be two or three times higher than the black and white books.
In modern era where smartphones and tablets have been part of our daily life, more people buy and read electronic books that are purchased and downloaded online. Because there are no printing, shipping and distribution costs involved in the selling of such books, the profit margin a publisher or bookshop charges to customers can be as low as 5%.
In the US, we see that the role of brick and mortar bookstores is getting smaller. More information is now available on the internet. University students and researchers can store hundreds of titles of books in their tablets and e-readers while they go to campus. The market share of e-books is increasing. Owners of brick and mortar bookstores have to adapt with this situation. They can start to sell e-books too. Although the profit margin is small, the number of books sold to customers will be significantly higher than printed copies.

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