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Studies show that impulse buying can account for 65% of purchases in supermarkets - Leaving Cert Home Economics - Question 4 - 2005
Question 4
Studies show that impulse buying can account for 65% of purchases in supermarkets. (a) Describe four in-store techniques that supermarkets use to encourage consumer... show full transcript
Worked Solution & Example Answer:Studies show that impulse buying can account for 65% of purchases in supermarkets - Leaving Cert Home Economics - Question 4 - 2005
Step 1
Describe four in-store techniques that supermarkets use to encourage consumer spending.
Answer
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Store Layout: Supermarkets often employ a strategic layout where the maximum display of goods is positioned at eye level. This makes it easier for shoppers to encounter popular items and specialty goods, encouraging impulse buying.
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Product Placement: By positioning necessities like milk or bread at the back of the store, supermarkets compel consumers to traverse through aisles filled with promotional items, increasing the likelihood of additional purchases.
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Shelf Position: Luxury items or high-margin products are often placed at eye level on shelves, optimizing visibility and customer interaction, which subsequently boosts sales.
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In-store Promotions: Frequent special offers, product samples, and loyalty schemes are employed to entice shoppers. For example, offering seasonal discounts or producing visually appealing displays enhances engagement and encourages impulse purchases.
Step 2
Name three research methods used to gather information on the consumer. Explain how consumer research benefits (i) the retailer and (ii) the consumer.
Answer
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Questionnaires: Supermarkets can deploy questionnaires to gather feedback directly from consumers about their shopping experience and preferences.
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Surveys: Utilizing online and offline surveys enables retailers to collect broader data about consumer trends and buying habits.
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Interviews: Conducting in-depth interviews allows for qualitative insights into consumer motivations and behaviors.
Benefits:
- (i) Retailer: Consumer research helps retailers identify what products are in demand, optimizing inventory and promotional strategies to meet consumer needs more effectively.
- (ii) Consumer: For consumers, research can lead to improved product offerings and services tailored to their preferences, ensuring a better shopping experience.
Step 3
Name and outline the role of any one voluntary agency concerned with consumer protection.
Answer
One example is the Consumers' Association of Ireland (CAI). Established in 1966, this organization aims to promote the interests of consumers and safeguard their rights. The CAI publishes a monthly magazine, 'Consumer Choice', which reviews goods and services. Additionally, the agency provides information on consumer rights and advocates for fair treatment in the marketplace.