WHY WE BUY?

PACO UNDERHILL
ERDEM BOSTAN
WHY WE BUY?

Why We Buy is a book about the Science of Shopping.

Paco Underhill is the founder of a consulting company called

Envirosell.

In the book, he tells us about the the extensive research hes

done about the relations between the seller, and the buyer.
WHY WE BUY?
The emergence of the science of shopping starts with anthropology.
Paco says that if anthropology had devoted a branch to study of shoppers
they wouldnt have to invent the science of shopping.
He thinks every aspect of the shopping experience is important. Every
rack, counter, shelf, banner, brochure, entrances, exits, even the restroom
lines, windows and walls matter.
Every little thing a shopper does in the store should be examined and
cross-referenced.
Where do they go, which path do they take, which labels do they read or
not read? Every bit of statistical and demographical data should be
deemed important.
 They have dozens of equipments to track shoppers, but the most effective
one has aways been the tracking sheet, which is a piece of paper.
There are field researchers called trackers, and they track a shopper as
soon as he gets into the store and take notes about everything he does in
great detail. A tracker can study up to 50 shoppers a day.
Underhill tells us about various cases, telling us that the placement of a
rack, or a product on shelf directly effects the sales.
When they see that mostly children and elder people buy dog treats, they
advised their client to put the product on the lower shelves.
In one instance, the analyzed the data and told their client to put the mens
jeans on the racks near the entrance where theres a mens acessories
store next to it.
THE BUTT BRUSH FACTOR
Underhill tells us an example for us to understand what they call the butt-
brush factor.
He says that in one of the stores theyve worked with had a tie rack, and it
was in a tight aisle.
During busy times, people bumped into each other, and had to brush or
touch each other to pass.
They realized that most of the people (especially women) felt
uncomfortable when touched from behind, stopped their search for ties
and left the aisle.
By simply repositioning the tie rack, they boosted the sales without
changing anything about the product.
WHYTE & UNDERHILL
Undherhill was a student and admirer of social scientist
William H. Whyte.
 Before the science of shopping, one way to see whats going on
in the store was to watch the tape, or see the cash register.
Another way of measurement is customer surveys.
But most of the time, customers dont remember what exactly
theyve done in the store.
In a study of tobacco merchandising in a convenience store,
shoppers. remembered seeing signs for Marlboro even though
no such signs were in that store.
So the surveys are not always dependable.
 CONVERSION RATE
Nowadays, you have to make a deliberate effort to avoid shopping,
compared to older times, you are constantly subjected to many
opportunities and ways of shopping.

But one of the most important parameters is the conversion rate

A lot of shoppers may browse a particular product. You may be happy

about your sales performance but how many of the browsing shoppers
actually buy?

The important thing is to convert shoppers into buyers.

 MORE TIME IN-STORE =
MORE SALES
The more they spend time in a store, the more they buy, so you should keep
your customers in the store as long as possible.

But time is relative, most customers misjudge the time theyve spend in a
store
 INTERCEPTION RATE &
WAITING TIME
Interception rate is the
percentage of customers
who have some contact
with an employee.
MORE CONTACT = MORE
SALES
Another measure for a
stores performance is the
waiting time
If buyers come across a
long line in a store, they
may even leave the store
without buying anything.
 Underhill argues that businessperson often don't really know who their
shoppers are.

A pet treats manufacturer whose product is typically on high shelves is

unaware that its main buyers are old people and children.

He gives an example of a chain of family-style restaurants whose outlets had

too many tables for two and not enough tables for four.

Because no one had ever bothered to count the size of dining groups.
 THE BIOLOGICAL
CONSTANTS
Paco Underhill argues that most stores dont consider the simple
biological constants that are common among all human beings:
We only have two hands, and if we have a bag in one of our hands, we
need a basket to shop with the other.
Wed rather look at people than objects.
If you watch people coming from the parking lot and going into a store, we
can see that they move FAST. Because a parking lot is not a pleasant
place to walk slowly through.
SO, If you put important things on the windows facing the parking lot, people
will miss it. And if the objects on the windows are small, or not well lit, they
cannot be seen from distance.
 TRANSITION
(DECOMPRESSION) ZONE
Do you ever go into a store and immediately stop to check your surroundings? NO!
People need time to adjust when they go into a store. Their eyes focus, they slow
down gradually and even if you see them go into the store, theyre not actually
there for quite some time.
Retailers think that if you put some important object in the entrance zone, it will be
more effective, but actually this is not the case.
Theres a transitions zone in stores, where shoppers get in and get adapted to the
new environment.
The ads on the doors are often not being read. People look for door handles there,
not ads. They only stop and look at whats written on the door when the store is
closed.
You have to slow down the shoppers to keep them in the store for longer.
 Think about a woman in a cold day carrying a handbag. She has to take off
her coat and carry her bag through the entire shopping process.
You have to give them baskets or shopping carts.
If you put the baskets too close to the door (in the transition zone), most
people would not notice them.
Dont use plastic baskets, theyre ugly. Use bigger baskets, as people tend
to shop more if theres empty space in the basket.
Baskets should be scattered throughout the store, wherever shoppers
might need them.
 HOW TO READ A SIGN
To say whether a sign or any in-store media works or not, there's only one way to really
assess it-in place. On the floor of the store.

If they're not reading it, even the best sign won't work.

You have to get their attention first.

The focus should be on transmitting the message.

The message should be simple and understandable.

 HOW TO READ A SIGN
You should consider the reading time.

If you put a sign that you can read in 10 seconds to a place where you stop
for 3 or 4 seconds at most, its going to fail.

McDonald's found that 75 percent of customers read the menu board after
they order, while they wait for their food-during the"meal prep" period. So
if you want to give them a message for the next time they visit, its the
perfect time to do it.
 WHERE TO PUT THE SIGNS?
Shoe stores where Its smarter to
people often wait for put the ads on
the clerk to find the the way
right size. back from
the bathroom.
Escalators.
Inside of the bathroom
stalls
 SHOPPERS MOVE LIKE
PEOPLE
Underhill tells us that by a huge majority, most of the people head right
when they go into a store.
So if the majority of your customers are women, you should not place the
menswear category to the rand hand side, because when they go into the
store and to the right, they see that its the menswear side and come back
to the right side again.
Shoppers not only walk right, they also reach right. Because most of the
people are right-handed
People walk forward and they see forward, but most of the time in stores,
the products are on your right or left. You have to either walk sideways or
turn your head to see them. This makes us see less. Get distracted.
 This is why its always effective
to use endcaps (on the right)
Theyre very effective to display
goods.
Architects must design the stores
keeping sight lines in mind. You
need to be able to see the
displays from a distance.
You can use the pinball effect,
which is when a shopper looks at
a product and then look up, see
another appealing product, go
and examine that too.
Slightly above eye level to knee
level is usually the area we can
see clearly.
 BOOMERANG RATE
It shows how many times a shopper walks down an aisle and as soon as he
finds what hes looking for, he turns back without even looking at other
products.

You have to put the most important products on the back of the aisle so
they see more products on the way and have a chance to see something
interesting and stop.
 THE IMPORTANCE OF
SEATING
Underhill emphasizes the importance of seating in stores.

He says I would remove a display if it meant creating space for a chair.

A chair says We care because people often want to sit down and rest.

In most of the stores, even adding one chair to the store considerably boosts the sales.

For example, a man whos waiting for his wife shopping for underwear would want to sit
down while hes waiting. So the woman may shop more freely, spend more time in the
store and simply buy more.
MEN VS. WOMEN
 MEN
Men move faster in a store than
women.
They dont usually look at something
theyre not going to buy.
They dont like to ask questions.

They like to quickly find what they

need and get out.
They try to find what they want for a
few times, if they cant, they leave
the store.
The man almost always pays.

In the supermarket, Almost all

women have lists, but less than a
quarter of the men do.
MEN VS. WOMEN
 WHAT WOMEN WANT
Shopping is female.
Women still like to shop with
friends, give advice.
Theyre more patient, they enjoy
their time shopping unlike men.
They need wide, comfortable
environments.
Theyre very sensitive to the
butt-brush factor.
They want the shopping
experience
 SENIOR SHOPPERS
By 2025, nearly one fifth of all American people
will be 65 or older.
If you live in Japan, Italy, Germany, France or
China, the percentage gets bigger.
Human eyes begin to falter at about age forty,
and even healthy ones are usually impaired by
their sixties.
This changes how you perceive color; and less
light reaches your retina.
They need more light in the store.

Signs should have contrasting colours.

Every current study done of newspaper

readership comes back with the same result:
Readers want bigger text.
 SENIOR SHOPPERS
This is not only a problem for publishing
business.
The text on hair dye, skin cream, acne medicine
packages are bigger than the ones on aspirins,
vitamins, cold capsules.
The people who make the packaging have no
idea how it looks to the people who must read it.
By 2025, any text smaller than thirteen-point
type will be a form of commercial suicide.
The better educated the shopper, the more he or
she makes decisions based on what's written on
labels.
Products targeting older people should not be
placed on high or low shelves.
 KIDS
Kids go everywhere.
The twenty-first-century
marketer is focused on
kids and teens.
An average four years-old
American child can
identify over one hundred
brands.
They are subjected to
mass media more than
adults.
They idolize TV characters
they like.
 If a store is unwelcoming to
KIDS
children, the mothers will stay away
from there.
Stores should be stroller-friendly.

If your target is kids, you have to put

your products where they can reach.
If your target is the parent, you have
to find a way to keep the kids
distracted in your store.
Kids will touch any product they can
reach, because they see them as
toys.
They force their parents into buying.

Though technically adults are the

ones who select and buy toys, the
kids are the real decision-makers.
Baby-proofing your store is really
inportant for safety reasons.
 WHAT DO SHOPPERS LOVE?
TOUCH: Almost all unplanned buying is a result of touching, hearing,
smelling or tasting something in the store.
MIRRORS: We love looking at ourselves, and mirrors slow people down in
stores.
DISCOVERY: You should let the shopper discover. The smell of bread
should lead him to the bakery aisle.
TALKING: Attract couples, groups of friends and let them talk about the
products.
RECOGNITION: Shoppers love the feeling of being recognized, wanted. If
an employee initiates contact, shoppers are more likely to buy.
BARGAINS: They love bargains, and not just cutting down prices. If you
offer them 5 pieces of underwear just for 20$, its better than offering 5$
underwears individualy.
 WHAT SHOPPERS HATE?
TOO MANY MIRRORS: Its not a funhouse, its a store.
LINES: They dont like waiting, and a boring checkout process can make
them forget how much fun they had while shopping.
ASKING DUMB QUESTIONS: Dont make the shopper ask for everything,
give them enough signs, brochures, etc. for them to figure things out by
themselves.
BENDING: They dont like to reach down. Keep your goods in easy-reach.

PRODUCTS OUT OF STOCK: Very obvious.

OBSCURE PRICE TAGS: Price tags should be clear.
INTIMIDATING SERVICE: Bad service undoes good merchandise, prices
and location almost every time. Shoppers talking about a good service is
the best positive word of mouth you can get.
 THE BIG THREE
There are three important sides of retailing. Undrehill calls them The Big Three:

DESIGN: The store itself. The premises of the store.

MERCHANDISING: Whatever you put in the store. The products.

OPERATIONS: What employees do in the store.

These three factors are intertwined, you should not separate them from each
other.
You need balance among these three factors. If one is weak, the others carry a
great burden.
 TIME
One of the most important factors in a
store is waiting times.
Customers see a corellation between
waiting times and service quality.
If they wait for longer, they think the
service quality is poor.
Peoples perception of time distorts
after 90 seconds. They tend to
exaggerate if they wait longer than
that.
If you solve their problems in 2
minutes, its a success, if its more
than 3, its failure.
 TIME
There are some ways to bend their perception of time:

Interaction: If an employee simply acknowledges the fact that theres a

shopper waiting, the shopper will relax and be more patient. When they
see the store manager present, they are relieved. If they get some kind of
explanation, theyll be more patient.
Orderliness: If they see a crowd instead of a line, they get frustrated. If
they see 3 lines with 5 people on each, instead of a long line with 15
people, their perception of waiting time will be shorter
Companionship: Recognize that lone shoppers are more impatient, and
the ones with a companion are more patient.
Diversion: If you have something to keep them busy while waiting. They
will be more patient. It can be a video, some free samples,
 CASH/WRAP COUNTER
With all the research and effort that have been put into making retail store
better, no one made it possible to like cash/wrap counters.
Its a source of anxiety.
Its a mistake to position it at the entrance. Most shoppers see a crowded
cash/wrap counter as soon as they set foot into the store, give up and
leave the store.
The designer should take long lines of shoppers in front of cash/wrap
counters into account while designing the store.
HOW TO ATTRACT
ATTENTION TO
MERCHANDISE
Saving your merchandise from the shelves and display it on its own.

Placing one item next to another that creates some spark and sell more of one, or
even both of them. In other words: ADJACENCIES.

There are no new customers, the population isnt booming, we have more stores
than we need. So you should sell more to the existing customers.

80 percent of a store's sales will come from 20 percent of its clients.

They buy a new mouse? Put a mousepad there. A new car? Put a floor mat.

Belts near trousers, socks near shoes, tomato sauce near pasta.
 You can figure out intelligent adjacencies just by standing near one thing and
asking yourself, what else is on my mind here?
 THE INTERNET
Underhill questions the accuracy of the information we find
on the Internet, giving an example in which he is listed as
the co-author of a book on Amazon he had nothing to do
with.
Price we pay for convenience, one-click shopping and a
ritualized retail experience is that no one recognizably
human sits at the other end of our Amazon transactions-just
a seamlessly calibrated database of e-mails that roll toward
our in-boxes.
THE ADVANTAGES:
Pre-shopping: You can get information online, before going
to the store and buying what you need.
Having the confort of your home while shopping with no
lines, no waiting for the checkout etc.
Time savings, Access to more products.
 THE INTERNET -
CONVERGENCE
Underhill describes convergence as the merging of the physical store and
the internet.
QR Codes, online brochures and manuals are very effective.
The Ability to Replace Our Wallets with internet enabled mobile
phones.
 FINAL THOUGHTS
I enjoyed the book more than I expected. As its more about what happens
in the real world instead of just theories.
Underhill uses many, many, many real-life examples, tells us many
experiences about past clients and it keeps the tone of the book lighter
and that makes the book easy to read, while being very informative.
Its amazing how little changes in a store can boost sales and performance
so well.
And it showed me how one can get creative in a store environment, or how
business-people can be so blind to obvious issues in their stores.
I sensed that Underhill is a little sceptical about the Internet and online
sales, but its probably because the book is a little outdated. Even the
revised and updated version is almost 10 years old.
I would love to see re-revised and updated version of this book.
ERDEM BOSTAN