Book Review - Why We Buy

Paco Underhill is a revolutionary retail guru. He describes himself as an urban geographer and retail anthropologist. He is the founder of Envirosell, a research and consulting company that specializes in improving retail environments in order to sell more products.

His fundamental research methodology is to track customers as they move through stores; observe their browsing and purchasing patterns; and take detailed notes of how long they spend in each area of the store, what they touch and look at, what they buy, how much they spend, etc. In the present market 65% people purchase from stores (Shopping Mall, Retail Stores etc.).

Basically this book covers retail products - not services. Paco Underhill observe and analyze consumer behaviour in retail industry. One fundamental result of Underhill's research into shopper behaviour is that the amount of money spent in a store is positively correlated with the amount of time spent (keep consumer in the store longer and they'll spent more money).

Why We Buy is devoted to a discussion of the demographics of shopping - how different types of customers vary in their attitudes and approaches to shopping. Three main segments are considered: men, women, kids. Some of the more interesting observations that Underhill makes here include:

Regarding Men: Only 72% of men read price tags on items, as compared to 86% of women. If men spent half an hour in a store women spent one hour or more then one hour, it is almost twice or more than twice. Men always tend to go into a store, look at a large shelf of items, pick one, and quickly leave. Meanwhile, women are just opposite.

Regarding Women: Women are more interested in shopping as compared to men. Women generally take pleasure and pride in the shopping experience as opposed to men who always shopping for male-oriented items such as jeans, electronic equipment specially iPods etc. , the shopping environment for women should be relaxing, pleasant, featuring all of the positive layout factors previously discussed that will keep them in the store for a longer period of time. Underhill said Women are actually more information-intensive, reading the label for each possibility before making a purchase.

Regarding Kids: Many retail stores and mall in U.S and Australia started uninterrupted shopping for kids means leaving the parents free for shopping. The principal behind this is “longer the shopper spends in the store the more they will spend comes into play.”

 Many stores in the world do not provide opportunities for shoppers to touch and feel the product sensual experience  plays very important role in sales. Paco Underhill told us that two minutes is the limit of most people's tolerance - after that, they do the slow burn. He recommends a variety of distractions that can be place strategically in order to change the perception of how much time is being spent for waiting. 

Unit 1: Instead of Samoa, Stores: The Science of Shopping.

Chapter 1:

A SCIENCE IS BORN

In this chapter we find that the author Paco Underhill has been a part-time instructor at city university of New York in 1977 & teaching courses in fieldwork on environmental psychology department. The Lincoln center wanted to see if a large store is viable in that street, so the author Paco recruited few of his students to help. The author came forward to do this because was inspired by the great author William H Whyte, who has started his carrier as the editor of fortune magazine & written books such as “The organization man”, “The last landscape”, City: rediscovering the center” & “The social life of small urban space. The author Whyte is the founder of Project for public space (PPS) in the year 1974. In this author Whyte has made much research on people & how they use the public space, he died I n the year 1999. These inspirations lead him to start a group & train them on few special skills. These people are called the trackers they mainly watch each & every buying behaviors of a customer from the time they enter the shop till they leave the shop. A great survey is made & the analysis is been made on the data’s solutions are been derived for the problems. On application of these solution it is

found that the problems are been solved & turned out to be more productive. He thought of using the tool of urban anthropology to study how people interact with the retail environment, the science of shopping is a force today because the level purchasing is such that the big decision are also being made right there in the store, many clients try to replace us with the fancy software packages but still they had to come back to us. The author also says that there are competitors who sell what they do in a lower price but remember that you get only what you pay.

Chapter 2:

WHAT RETAILERS & MARKETERS DON’T KNOW:

Retailers normally observe the lesson & apply the principles from it, marketer its fair to ask how much doesn’t the retailer already know? & few other questions. On a survey some in the organization where certain that we have made a terrible miscalculation, so they had their own study, but though they started doing something’s different they still required the team for the company’s big picture. In this the author is also discussed about the conversation rate. He also came up with a concept that the amount of time spent by the customer in the store determines his buying; he is also saying that another way of judging a store is threw the interaction rate. The author is told that retailers often don’t know who their shoppers are, he also has given few suggestions on many problems.

Unit 2: Walk like an Egyptian-The mechanics of Shopping

This unit deals with the science and the mechanics   of shopping (i.e.) how people physically react to the layout of space. There are certain physical and anatomical abilities, tendencies, limitations and needs common to all people and the retail environment and the technical terms that the author uses is biological constraints.

Chapter 3 - The Twilight

This chapter mainly deals with the lighting within the store or outlet. Here the author tries to show that the lighting within the store needs to be given so importance that it tends to majorly affect the buying behaviour of shoppers.

Chapter 4-You need Hands

In this chapter the author says that baskets which are placed within the store needs to scattered throughout the store which will make a easy job to customers.

All of which means that whatever's in the zone they cross before making that transition is pretty much lost on them. If there's a display of merchandise, they're not going to take it in. If there's a sign, they'll probably be moving too fast to absorb what it says. Putting the pile of flyers or a stack of shopping baskets just inside the door will increase the shopping experience of the customer. Shoppers will barely see them, and will almost never pick them up. Moving them ten feet in and the flyers and baskets will disappear. It's a law of nature - shoppers need a landing strip.

Shoppers need the use of their hands to touch, feel, pick up and examine merchandise - if they are burdened down with a coat, several other items that they have picked up, a toddler, etc., they will spend less time in the store than if they had a shopping cart, access to a coat check, strollers, baskets (placed inside the sore interior where they could actually be useful to someone who has already accumulated a few items), etc.

Chapter 5 – How to read a Sign?

This chapter mainly deals with the prominence and impact of signs in different outlets. Very often, signs in retail environments contain too many words to be scanned quickly, and are placed in locations where they will never be noticed - "Putting a sign that requires twelve seconds to read in a place where customers spend four seconds is just slightly more effective than putting it in the garage."

The typical movement and flow patterns of people are important to know in designing retail environments - for example, individuals tend to turn to the right when moving through a store - another titbit: people tend to slow down when they approach reflective surfaces. People don't see signs. They are focused on other things, or signs are badly laid out and placed in the wrong places. 

According to author, the signs need to be put where people are waiting. Give them something to look at. In 1½ seconds, they can only read 3 or 4 words.

Chapter 6-Shoppers move like People

This chapter mainly deals the most crucial aspect of shopping is the one that looks the simplest (i.e.) the matter of how exactly human beings move. Mainly how they walk.

·         Store layout, too, will need to be redesigned with larger aisles and ramps to accommodate walkers and motorized wheelchairs.

·         Shoppers move like people - they want to see stuff face on, not sideways. This applies to window displays & store displays.

·         American shoppers move to the right the same way they drive.

Chapter7-Dynamic

This chapter mainly gives insight into provide seating for support people: husbands shopping with wives, etc.

More than 50% of fast food is served in Drive-Through Windows. Ten percent of those people park in the parking lot to eat (primarily women).

Unit3-Men are from Home Depot, Women are from Bloomingdale’s

Chapter8-Shop like a man

72% of men see price tags on items, as compared to 86% of women. For a man, ignoring the price tag is a measure of his virility. When a man accompanies a woman for shopping, her time in the store is drastically cut down when compared to women accompanying other women while shopping, they spend almost twice as much time in a store as a woman and a man. Open a women store next to a store that will keep the man happy. Women stores are not organized by the men to buy. Almost all the store are women centric. Men's Health magazine sells more than 1.5 million copies per month.

Chapter9-What women want?

Women usually take pleasure and pride in the shopping experience as compared to men who usually just want to get in and get out, unless they are shopping for specific male-oriented items such as power tools, stereos or computers. The shopping environment for women should be relaxing, pleasant, featuring all of the positive layout factors that will keep them in the store for a longer period of time.

As women take on more of the responsibilities of shopping for all items, as a result of more single family households and a general breaking down of the traditional sex-oriented shopping roles in the family. The traditional male retail preserves (such as Joe's Hardware) will become more oriented towards women's shopping preferences, the demise of Joe's hardware in favour of places like Home Depot attest to this trend.

Stuff for older people on the lower shelf. Gas stations for women have the cleanest washrooms ever. Men tend to sit in front and women in rear in fast food restaurants.

Chapter10: We are getting older

Many of us will spend more time being old that the time we had being young. It follows then that store layouts and packaging design will have to change in order to accommodate us aging baby boomers. This will include larger print on packages because older people have difficultly

reading anything less than 12 point type. Better lighting in stores because older people at age of 50 receive about 25% less light than at age 20 due to discolouration of the cornea and sharper colour distinction on signs and certain store areas. For example, on stairs, where it is critical that older customers are , able to easily differentiate the rise from the run part of the step, to avoid tripping. Store layout, too, will need to be redesigned with larger aisles and ramps to accommodate walkers and motorized wheelchairs.

Chapter11: Kids

This section is devoted to very young kids, and there are some predictable suggestions and points raised. For example, the merchandise oriented towards kids has got to be placed at eye level for those kids i.e, about three feet off the floor. Retailers have to provide for parents who are shopping with kids in tow by providing safe distractions and diversions for their kids, leaving the parents free for a few minutes of uninterrupted shopping. The principle that the longer the shopper spends in the store the more they will spend money.

Unit-4 – See Me, Feel Me, Tough Me, Buy Me: The Dynamics of Shopping.

This unit deals with the overall augmentation and the manner in which each shopper needs to be given the prime importance.The behavioural differences due to gender and age must be accommodated. The mirrors are crucial sales tools for wearable items like clothing, jewellery etc. But too many numbers of mirror will feel like fun house. 

Chapter-12:

The Sensual Shopper

This chapter talks about dynamics of shopping, how they shop and what does the shopping mean ? The activities of shopping like sight, touch, smell, taste, hearing and then whether to choose or reject. What are the products is to be tested before buying and what are not be and their reasons with some instances, how to segregate and arrange the product and how to differentiate them, so that customers will not get confused and they love to go for shopping and prefer the particular shop. Some methods had been followed to engage the customers and make them feel more convenient.

Chapter-13

The Big Three

Its talks about the three distinct aspects. They are design, merchandising and operation. All  these aspects are intertwined and interrelated to each other, if there are any changes or any decisions taken for particular aspects it  will affect the rest of the aspects.

Chapter-14

Time

How to turn shopping from bad to good can be  by playing music or keeping some pictures or some write-ups on the waiting areas so that the customer will not feel bored while waiting because the nature of the human is they feel  irritated when they are waiting.

Chapter-15

Cash/Wrap Blues

Self-services and augmentation are to be followed so that the store will have touch with the customers.

Chapter-16

Magic Arts

We should not place the two different products together, instead of this we should place two relevant product together (mouse with mouse pad) it leads to increase in the sales.

Unit 5: Screen Savers, Jet Lag and Whirling Dervishes; The Culture of Shopping.

Chapter: 17

The Internet: Internet shopping became very famous in present market. 20% of shopping is done by internet and 80% done by real world shopping. The advantages of Internet Shopping – So many options available, convenience, speed and lots of product information. The advantages of physical stores is – touch, trail and sensual experience, immediate gratification and social interaction.

If we search anything on web, you find half a millions of websites. Uncensored nature of World Wide Web is the biggest disadvantages. Mostly students using www for searching their study material, homework and resources for their term papers.

Many consumers believe that if they can’t find something on the Internet, it doesn’t exist.

Underhill said that half of the information on Internet is fake, example – Once upon a time Underhill wanted to book a hotel in Singapore via Internet, website showed him that there is no room available in that hotel. Underhill made a one phone call to the hotel and booked his rooms. This proves at that moment Internet was wrong and fail.

Chapter: 18

Windows of the World: The world’s most ardent Internet shoppers come from South Korea, where close to 100% of all Internet users have bought stuff online and same followed by Germany, United Kingdom and Japan. According to the serve which was conducted by Mr. Underhill most popular online purchases are airline tickets, books, clothes, DVD’s, games and accessories. 60% of them claim they buy products mostly from the same sites. Another way the Internet has worked well is in children’s online communities, like Club Penguin, Webkinz or other sites where kids are entreated to buy, tend and shower their love on virtual pets. Amazon.com is one of the most popular website for oline shopping, which has given the best shopping experience to shoppers.

Now a days Facebook is not only a social networking website, now a days Fcaebook is a market place, with lots of advirtisements.

By 2015 the vast majority of growth in the retail market place will take place in emerging markets, where well-trained merchants are serving emerging customers. Today in each and every country have shopping mall tradition, interesting thing is that Kuala Lampur to Dubai, from Tokyo to Lisbon, and all are looking same almost. Malls are cool destinations for teenagers for spending time. Today retail is the part of human life. LVMH, the luxury goods company in US started a business school in luxury goods management and he also gave MBA degree in retailing.

Chapter 19:

Final Thoughts: Shopping is in our breathe and in our DNA also, specially Internet shopping. Now days each and every big retail store, shop, shopping malls has its own Internet Address (website). Shopping is a form of entertainment, just like the movie or zoo. Your best customers are your current customers. Find ways to upsell them.

Entice them to the back of the store. Keep them in the store longer.




* This book review is done Rishabh Saxena, Aarthi Ajay Kumar, Vandana Ramesh, Santosh and Sairam Indla. This book review is only for class purpose.