Definition of Impulse Purchase: Impulse purchase or impulse buying is an unplanned purchase. For example, this could be a small purchase like a package of gum or chips, or an add on item from Amazon, but this could also be larger like a new sports car. Since this is an unplanned purchase made on impulse several factors can influence this decision like emotion, advertising, or even boredom.
The top 5 categories for consumer impulse purchases are food, clothing, household items, dining out, and footwear. These types of purchase can be a burden, according to a 2018 CNBC article consumers make 3 impulse purchases a week totaling $450 a month and $5,400 a year. To maximize these purchases advertising executives, know how effective these types of purchases can be and spend millions on advertising and countless hours on making their packages more appealing to consumers.
This explains the need for countless personal finance blogs like Dave Ramsay to help stop the scourge of impulse purchases. Three of the most common tips to stop impulse purchases is to shop with a plan, avoid promotional materials, and stick to your budget. While these tips make sense in theory but, it can be difficult to say no while standing in the checkout line at the grocery store.
Marketing and Impulse Purchases
Marketers are very aware of this mindset and strategically place items like candy, nuts, drinks, gum, lighters, and other smaller impulse purchase items. Advertising not only targets adults but also children by placing inexpensive items in colorful packaging near eye level for younger customers.
VendHQ suggests using bright colors for promotional materials, and to strategically place your products making them more visible to consumers. Other tips include placing impulse items near top selling products and high traffic areas of your store as well as near cash registers since customers are near the end of the buying process. Lastly, encourage your store employees to upsell customers during the exchange at the register by asking if they found everything they needed or to ask if they would like a small product to complete their purchase.
Impulse Shopping Online vs In-store
According to “The State of Consumer Spending: In-Store Impulse Shopping Stands the Test of Time” study done by First Insight 77% of women and 67% of men make an impulse purchase online. In comparison to 89% of women and 78% of men who make an in-store impulse purchase. In an interview with eMarketer Jennifer Silverberg, the CEO of SmartCommerce, states consumer packaged goods (CPG) are in a strange position because they rely heavily on convenience driven purchases. Since it can be difficult for a CPG brand to provide convenience online she suggests a one-click purchase option and to focus on the actual packaging of the product so they need to be replaced quicker.
Creative Display Works Offers Quality Impulse Display Racks
Creative Display Works offers many different types of merchandise display racks including Beverage Display Racks, Automotive Part Displays, Magazine Racks & Stands, Retail Display Racks, Bakery Display Racks, Snack & Candy Displays, Cigarette Display Racks, Tool Display Racks, Impulse Display Racks and more.