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Question 12
Describe how each of the following influence consumers when shopping. (i) Product placement (ii) Loyalty schemes
Step 1
Answer
Product placement significantly influences consumer behavior by establishing a strong connection between products and media they interact with. Essential products are often strategically placed at the back of the shop, encouraging consumers to traverse through the store and possibly discover additional items. Additionally, products are introduced through association in films or television shows that normalize their usage, enhancing their appeal.
Retailers may utilize special offers or attractive displays that captivate consumer attention, making the product more desirable. Non-essential items are frequently positioned at checkout counters, enticing last-minute purchases as consumers wait in line.
Step 2
Answer
Loyalty schemes effectively boost consumer spending and brand loyalty by incentivizing repeat purchases. Customers earn points with every transaction, which can later be redeemed for discounts or rewards.
This strategy not only encourages ongoing loyalty to a particular store but also engages customers by providing benefits that enhance their shopping experience. As consumers accumulate points, they feel motivated to return to the store to maximize their rewards, ultimately increasing their overall expenditure.
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