Friday, May 1, 2009

Give up the control and flourish


Visiting big retail chain and watching thousands of products displayed elegantly has always been an exhilarating experience for me. One hundred types of Soups, great variety of organic food, stimulating collection of sausages has always given the kick to gourmet like me. But never in my life had I tried to explore the reason, why retail chains emphasize so much on display of products. Marketing aficionados told me that the reason is obvious, not even worth discussing. More product display means better exposure, which further coerce customers to buy, which otherwise they would not have bought. For the good marketing student which I am, I took the logic and convinced myself that the use of million square feet of floor space to display products is to stimulate latent customer needs and in process fuel sale.

But one day something happened which impelled me to question this fundamental, which for me was nothing less than a gospel. I was buying toffee from small mom and pop store. The shopkeeper took the money, signaled me to take anything I want for the sum I paid and turned his face away. Now I had the choice to pick any thing I want to. I don’t have to wait for shopkeeper to handover the things to me. I felt liberated, literally. I felt like a free bird. Like a true iconoclast I wasted no time to frame perspective of my own about the whole situation.

Displaying items alone can’t make customer buy anything. But the display of products in retails is meant to give control in the hands of customers. It makes them feel liberated. He thinks that he has been emancipated. This emancipation is manifested in his purchase behavior. He ends up buying bizarre products, which otherwise he would not have bought.

Given an option to choose between two restaurants, one would tend to choose the restaurant with more choices, even though he may always order the same things. This happens because more options mean more control. More control aggravates his latent needs.

This perspective can be extended to plenty of other areas also.

Business model of Dell for mass customization, millions of tariff plans by telecom service providers, elaborated menu all put the control in the hand of customer and lets him decide his fate.

So if you want to boost those falling sales curve go ahead and give the control in the hands of the customer. He will for sure pay you back, generously.

3 comments:

  1. I found it tough to read. Required a thesaurus to understand the word meanings. Use of the word iconoclast was over the edge :)

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  2. Same here Mr. Anonymous....I wrote what ever came in my mind..Next post ll try to improve on this..

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  3. not being a management student , the business concepts have always been alien to me..but this one is something I have always believed in..."Jo dikhta hai, Wahi bikta hai"... at the same time..I totally agree...more choices means more control...n 1 out of 5 times a person visiting the same store/restaurant shall order something different...

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