why we buy- book review
TRANSCRIPT
BOOK REVIEW
ON
J
Reviewed by:
TANISHA MEHROTRA
164
Tanisha Mehrotra
―It is not the most intellectual or the strongest of species that
survives; but the species that survives is the one that is able to
adapt to and adjust best to the changing environment in which
it finds itself.”
Charles Darwin
It is not the strongest retailer that will survive; the one that
survives will be the able to adapt and adjust best to the changing
consumer preferences and retail environment
Paco Underhill in his book ‗Why We Buy‘, Talks elaborately
about the factors that affect consumer‘s behavior when they
enter a retail store for purchase. Identification of these behaviors
can help retailers strategize their offering better to succeed in
their endeavors.
I, through this book review, intend to highlight these factors
mentioned in the book by Paco Underhill and offer my
understanding from the reading. I have also given my thoughts
on the applications of the concepts proposed in the book to seek
relevance in the context of ‗The online world‘.
I have given important highlights of each chapter/section of the
book and further reviewed them by dividing the page into two-
the left side is used to for making notes from the book and the
right side to offer my interpretation.
Tanisha Mehrotra
A science is born
The book begins from the eyes of a tracker,
‗another day in the vineyards of science‘-
almost noting every movement the lady
shopper makes and every action she does.
Author addresses a fundamental question-
―Since when does such a scholarly discipline
even exist?‖ – Beyond anthropology studies
that fail to capture the minute details of
shoppers movements and ‗every nook and
cranny from the farthest reach‘ inside a
store- ‗The Science of Shopping‘ is Born;
research into the habits of a modern shopper.
Important tools that aid the study of this
science- Tracker (that records several
shoppers‘ behavior, nearly 40), tracking
sheet where enormous amount of
information is crammed (excel to SPSS).
Some in-store fundas: Discovery of the
‗butt-brush effect‘- understanding why a
rack placed near the entrance is an
underperformer; Key paths or ‗doorways‘ to
be identified in a store for better
merchandising; display and their positioning
is integral
Important Highlights
Chapter one gives us a fair idea as to
what the book is about. It also helps us
understand what science of shopping
entails and customer centric approach to
designing a retail store is integral.
Though the book is much about the
modern in-store shopper, the idea of
tracking customers‘ movements is the
first step towards better offering, stands
true for much hyped online retailing as
well.
The advent of web crawlers and studying
data on browser‘s each click has become
a mandate to display what is relevant to
the customers and designing the offering
better that gets maximum traffic to an e-
retail store.
Thoughts
Tanisha Mehrotra
What Retailers and
Marketers Don’t Know
This part of the book talks about Science of
shopping from the eyes of a practitioner- the
retailer and the marketer who absorb the lessons
imparted and implement the learning in the stores
Concept of Conversion rate- Shoppers converted
into buyers/customers must be the focus of
retailers. Though it varies across outlets- a
supermarket may have a 100% conversion rate
whereas a high end jewelry shop may have a 1%
conversion rate.
Conversion rate is a measure of ‗what you make
of what you have’.
According to Paco Underhill- There is a direct
relationship between the amount of time a
shopper spends in a store and how much she/he
will buy. He talks about the ―arena concept‖ a
change implemented by Staple superstores on his
team‘s suggestion- where aisles in the middle of
the stores are low and get gradually higher as
customer reaches the perimeter.
Another good way to judge a store is by its
interception rate- their research shows a direct
relationship: more shopper-employee contacts
takes place the greater the average sales.
An important and simple yardstick of judging
customer satisfaction is the Waiting Time. If
shoppers are made to wait too long, their
impression of the overall services offered by the
practitioners plunges.
Paco Underhill highlights one important issue of
retailers- They don‘t know who their customers
are. This is a remarkable example of business
ignorance which needs to be taken care of.
A strategy not implemented is no good,
Talking theories and concepts of shopping
science is but in vain unless the ones who it is
meant for, put it to good use- the practitioners.
In this competitive industry what is it that will
put one retailer at an edge vis-à-vis others- Is
it high customer centric approach, efficient
system, better customer servicing? What will
give a retailer a sustained comparative
advantage? Paco Underhill talks about few
important concepts that retailers must be
aware about for better in-store strategy that
increase the conversion rate- Interception
(Employee at customer‘s service) and reduced
waiting time. Building a bond with customers
is important. ―Know your Customer” is an
important business mantra to better customer
relationship and higher sales.
The concepts stand very relevant to online
retailing as well- For better conversion rate it
is important to push notifications and almost
interact with your customers.
Notifications/pop-ups while you shop online
telling shoppers about latest deals/products
increase the conversion percentage. Knowing
your customers- by studying their clicks and
browsing pattern is an important source of
advertising in this world of virtual shops.
Also, the big Billion sale downturn, where the
website crashed, can be a point of reference to
understand the ―no waiting‖ concept stands
true for e-retail as well. Bansal Brothers
publicly apologized for the bad customer
experience post big billion day.
Important Highlights Thoughts
Tanisha Mehrotra
Transition zone- talks about the time it takes for
an average shopper to adjust from the high
paced movement in the parking lot to the slow-
down once inside the store. In this zone
shoppers are adjusting to the lighting, the
temperature, and situating their personal
belongings. In the retail environment- upfront is
the last place you want to be in- termed as
―decompression zone‖ by Paco Underhill.
Merchandisers must keep away from trying
anything in this zone and keep it as small as
possible. It is advisable to not greet shopper
right in this zone and hover them like vultures
instead they must leave shoppers alone for at
least one minute, let them make the transition,
adjust and be past the phase before a
salesperson/coach approaches them.
Suggestions by the author- use the
entrance/decompression zone in productive
ways.
Something like flower department- shoppers
might want to come back at the end of their
shopping spree.
Another important suggestion is ―power-
display‖ which acts as like a speed bump to
slow shoppers down. Another smashing
decompression zone idea could be to list the
deeply discounted merchandize, a deal so good
that it stops shopper right at the entrance.
Instead of pulling back from the entrance, push
the store out beyond it—start the selling space
in the parking lot.
The Twilight Zone
Important Highlights Thoughts
This part of the book highlights an
important shopping mechanism-
merchandising vis-à-vis space.
Understanding such intricate details
about customer behavior/pattern helps
retailers position their products better
with much thought and planning. It is
almost like a walk through the
shopper‘s sub-conscious mind.
The decompress zone- if I relate to my
own experience seems extremely
relevant. I have seldom paid attention to
what‘s right on my face when I enter an
outlet. I may come back to it later while
having exhausted my other options.
Though I have certain apprehensions
with ‘taking the outlet outside in the
parking lot‘ idea because it might dilute
the brand image. Having interactive
Billboard- announcing offers or a digital
board showing a moving display might
be able to attract customers better and
persuade them to step inside the store.
Positioning products on the e-commerce
website also involves a lot many
algorithms as to which are the most
popular or discounted or loved product
to catch shoppers‘ attention right from
the start of their virtual - shopping
spree.
Tanisha Mehrotra
This chapter opens with a woman shopper on a usual
chilly day out shopping. Underhill brings out the hand-
allotment issue: ‗God gave her two good hands. But she‘s
shopping with one‘. Her one hand is occupied by
carrying her coat and bag. Once she selects something in
the store – she is down to no hands and the shopping
spree is over.
The case is common to commuters in a metro station who
have an office bag and a cup of coffee/sandwich/lunch
etc. In such case if a commuter visits a newsstand he has
no space to place their belongings during the transaction
and faces the hand allotment issue. Suggestion by
Underhill- There must be a shelf at elbow height where
customers could rest their briefcases/purses/coffee while
digging out their money or waiting for changing.
During rush hours- the one hand issue adds to the
purchase time resulting in limited transactions. A better
designed display that takes human anatomy into
consideration is a remedy.
Post his extensive reading of customer behavior in retail
stores/outlets- he inferred ―if someone gave these people
baskets, they’d probably buy more things! They wouldn’t
buy fewer items, that’s certain.” He pointed out to the
direct relationship between the percentage of shoppers
using basket and the size of the average transactions.
Shopping aid strategy- giving baskets/carts right at the
entrance plus placing other shopping baskets at strategic
locations throughout the store
He further offered a suggestion to address hand-allotment
issue- create a combination coat checkpackage call
system. Customers could check-in all their personal
belongings and salesclerks would dispatch the bags to the
will-call desk near the exit. Shoppers can then have a
hands-free shopping experience.
You need hands Important Highlights
Thoughts
This chapter furthers the focus of
businesses/retailers towards more
customer centric approach. How
shopping patterns and their
understanding, such as customers‘ usage
of hands, can affect an outlet‘s sales.
Underhill talks about the hand-allotment
issue which we almost always face in our
shopping experience but never
understood its implications. Practitioners
can increase their average sales in rush
hours by altering the counter design and
strategically locating carts to increase the
sales/ transaction size per basket.
There is a lesson for e-retailing as well,
every product must be redirected to cart
which can be accessed at the checkout,
products may be added or removed at this
stage and final payment can be made. It
must be a glitch-free experience for
shoppers. Like the example mentioned in
the chapter about the convenience of
picking up the order at a time suitable to
shoppers, online retailing website must
also provide with a similar feature-
Having an account in one‘s name where
order stays save in your cart and shoppers
can come back to it at a time convenient
to them- make the payment and check
out.
Tanisha Mehrotra
How to read a sign
Important Highlights Thoughts
According to Paco Underhill it is only at the
Floor of the Store and not within the comforts of
a conference room, can you really access
whether a sign or any in-store media will work
or not.
For him they are not just signs within a store-
it‘s a three dimensional walk in a TV
commercial- the job is to figure out what to say
and when to say and how to say it. Say it in a
way that grabs audience‘s attention at an instant
glance.
Each zone, according to him, is right for one
kind of message: ―putting a sign that requires
twelve second to read in a place where
customers spend four seconds is slightly more
effective than putting it in your garage‖.
Clever placement suggested by Underhill- small
signs inside bathroom stalls, escalators, waiting
areas( e.g.- repair department waiting
area),menu board and counter-area signs receive
prolonged attention, promotional material over
the condiment bar (not the main course but
advertise something like desserts); strategies are
different for a fast-food restaurant, which are
usually zoned, and a family restaurant.
He also talks about the smart sign design that
breaks the message into two or three parts and
communicating it a little at a time.
Roadway signs must be short and precise (2/3
words) for drivers to get the message within
seconds, they won‘t stop to read over any
message. The message can be either read fast or
positioned in a manner that it can be read while
moving.
Key take away from this chapter is that
Logical sequencing of signs and fixtures is
integral for efficient and effective
communication of messages that matter to
both companies and shoppers. I could have
never imagined the importance of studying
detailed customer behavioral pattern before
designing the sign and positioning it. A
relevant message in a relevant zone is a must
for an effective communication, where the
efforts of the marketers are not wasted.
Understanding it in the online-commerce
perspective- companies are using digital
media/social media to communicate any
promotion or message. With busy urban
lifestyle, people hardly have time to read
elaborate messages. Hence, Digital Adverts
must be strategically designed to convey the
required message in a best pictorial way with
minimum text, something that grabs
attention of the onlooker. Also, on a website
the signs must be strategically positioned to
direct customers to relevant links and convey
offers that are addressed well.
Tanisha Mehrotra
Shoppers move like people Important Highlights
Thoughts
A smart store, according to Underhill, is one that
puts merchandise in shopper‘s path and in our field
of vision in a way that invites consideration.it is
designed according to how customers walk and
where they look.
He also makes an observation about the ―Right-
leaning Bias‖- people invariably walk towards the
right. In a retail environment it can be of utmost
significance by placing most important goods on
the right side.
An effective way to display goods is cheveroning-
placing shelves or rack on a 45 degree angle for
better exposure of what the hold to the vision on a
strolling shopper. The negative part of
Cheveroning is that it requires about one-fifth
more floor space.
A good store operates by using pinball effect-
dispersal of merchandise across stores which
makes shoppers helplessly pulled in by what they
see up ahead or to their right.
Underhill talks about ―The Boomerang rate‖-
measure of how many times shoppers fail to walk
completely through an aisle, from one end to the
other. Half-Boomerang can be overcome with
options like- floor graphic of a hopscotch game,
,keep a must-need-item like milk at the end, put
discounted products on back left-hand corner.
Where the front of the showroom is concerned,
display must be altered according to the customer
traffic. Eg- A book store can display books on
child care/health care in morning hours, books on
games and pop music for school rush in the
afternoon. Evening time, when work crowd
streams through, books on business and computers
can be displayed.
“How shoppers move‖- an important
mechanism in retail environment to
customize the layout of the store according
to usual movement of shoppers.
The right leaning bias almost
subconsciously controls our movement not
just while shopping but otherwise as well.
Such tendencies act as a referral point to
think from consumer‘s view point while
designing offering.
E-retail website may have algorithms
designed so as to overcome the low
boomerang rate as well. Shoppers may not
be willing to swipe down all the products or
may get tired mid-way. The role of ‗filters‘
come into picture here- Shortlisting only
attributes necessary( on the basis of price,
size, color, popularity) to shoppers can
overcome the tedious list of thousands of
products.
Tanisha Mehrotra
Dynamic
Important Highlights Thoughts
In a retail environment, Shoppers and their
needs determine what products are to be sold.
Therefore retailers must identify the customer
needs and accordingly maintain assortment in
their stores. According to Underhill, addition of
a chair can increase sales. Seating plan can
have three variations: short term parking-
outside a dressing room, medium term parking
chair immediately outside the door where
people can wait for around 10 or so minutes,
and long term parking-a comfortable place for
twenty minutes or longer.
At a Fast Food outlet, drive-thru customers
account for more than half of all the fast food
purchased. Therefore, fast food restaurants
must make sure that parking area is visible
from the street where customers can park their
car and enjoy their burger with a pleasant
music. As a matter of choice, they must
decrease their building space and include more
of parking area.
In the world of diverse customer
preferences, it is important for retailers to
cater to these dynamic needs and not turn
down any business opportunity. It is
important to identify problems and convert
them into solutions, benefiting in the
process.
Plus size segment in famous retail stores is
a good example. Brands are now trying to
take into account dynamic retail
environment, changing customer
preferences and variety expectations of the
customers into consideration.
Tanisha Mehrotra
The demographics of shopping
Underhill observes that the traditional shopping
behavioral pattern varies between men and women.
(Men are like hunters who shop recklessly and women
are more like gathers that can spend their entire day in a
shopping mall just observing the merchandises).
Though with changing women‘s roles their shopping
habits change as well. Therefore, the retailers must
strategize around involving men more with the store.
Women are heroic shoppers- women who assume pre-
historic role under patriarchal convention are the
shoppers of family (the gatherer link)- this particular
function endowed them to move out of the four walls.
They apply psychological and emotional aspect to
shopping (involve themselves in the ritual of seeking,
comparing, imagining and envisioning merchandise).
They are the ones who plumb the metaphysics of
shopping. They have a thing for shopping and the butt-
brush effect talked about in the first section stands true
for women as well- they have an aversion to examining
anything below waist-level. To conclude- women
demand more shopping environment than men do.
Retailers also have to cater to elder generation (in their
50s or 60s) by having designed the retail environment to
accommodate their needs. Using larger texts in menu
card/packaging, wheel chair accessibility must be
considered.
Children are an economic force that can be considered
as positive or negative. If a store is unwelcoming to
children, parent shoppers will stay away or vice-versa.
A retail store must be designed in a way where children
must be able to reach out to the products that are
intended for them. If the products are meant for parents
and require their serious attention- there should be
provisions to divert the minds of kids. As the roles of
parents change, teenagers are getting more independent.
Therefore, the offerings must be designed keeping in
mind their accessibility by teenagers.
Keeping the demographics of your target
market in mind while designing the retail
environment, must be of utmost importance to
the retailers.
Though I don‘t quite agree with the
generalizations made by Underhill, as the
roles are changing and retailers must be ready
to adapt to them; there are decent amount of
pattern observations made by the research
team to arrive at such conclusions. Hence,
they can be taken as a reference point to
design offerings.
Online-retailing too must cater to such
behaviors associated to demographic profiles
of their target market. A website intended for
men must be structured differently than
women. A website for teenagers must be
colorful and flashy enough to attract their
attention. Typically a woman wants more
options/variety than men hence their section
in the website must be abundant with the
same. Whereas, men who before entering a
purchase have in mind what they intend on
buying must have less but best options. Also
shoppers must have a wish list option where
they can observe, compare and choose
amongst options before finally checking out.
Important Highlights Thoughts
Tanisha Mehrotra
The dynamics of shopping
The sensory aspect of shopping is an important aspect in the
decision making process for an unplanned purchase. Customers
today buy products more on the basis of trial and touch. If a
product like clothing has to be bought, it is important to touch
the cloth for deducing its quality. This is also true for cosmetics
which need to be felt before buying them to ensure their quality.
Underhill states a thumb-rule that shoppers tend to touch and
feel high-involvement products. Touch and trial is important
for individualist individuals who tend to be less loyal to brands
and buy products based on their virtue.
Shoppers buy products that appeal to their five senses- a
perfume will be bought only after having it smelled.
Underwell, in the section ‗THE BIG THREE‘ talks about the
interdependency and interrelatedness of the three factors:
Design/layout of the store, merchandising done- products
acquired and operations aspect- how they are intended to be
worked out.
Waiting time according to Underhill is one of the most
important factors in determining the overall service quality of
retail store. Bending time thus acts like a threshold point beyond
which a customer will change its perception about the service
quality as a result of waiting time. If a customer can be attended
within 2 minutes – the transaction will be considered successful.
Techniques and tactics can be adopted to deal with the bending
rate.
Transactions must be optimized in a way that the check-out
must be fast and efficient. Customers hate waiting in the line for
billing/wrapping. Technologies (scan/barcode reading) can be
used for efficient billing.
In the section ‘Magic Acts‘ talks about the role of
merchandising and the role an effective merchandising plays in
sales. Two competing products must not be placed together to
sell more of each and the adjacencies too play an important role-
which product is adjacent that adds on to sales is important.
It is the sensory aspect of
shopping that puts the brick and
mortar retail stores above online
retailing channels. The task of an
efficient retail website is to
strategize around this limitation
and turn it into an advantage.
Options like Trial before paying
can be a major consideration:
Lenskart‘s strategy of trial of
frames back home, choosing the
one among five frames earned
them an advantage.
The Big Three model can serve as
reference point for e-retailing as
well- a website designed with
high assortment of products and
well planned in order to provide
the convenience of shopping to
the customers. Their choice range
must be just a click away and the
whole process of landing on the
page, observing the product,
referring to important
information, choosing it and
finally making the payment must
be a smooth process.
The concept of cross-selling must
be taken into consideration by the
e-tailors by using appropriate
algorithms to en-cash on the
adjacencies concept.
Important Highlights Thoughts
Tanisha Mehrotra
In this section- Underhill talks about online-
shopping and its convenience. It is best suited to do
business with merchandise that doesn‘t involve a
lot of browsing, touching, prodding or stroking.
Online world can also be as a brand-building
platform.
Underhill also illustrates the importance of self-
examination for a retailer. They must examine their
shopper‘s behavior while they shop and alter
offering if necessary. An industry can learn from
other industries as well, to identify changes in
consumer pattern; having a café in a bookstore
helps them spend more time in a store comfortably.
The culture of shopping
Final Thoughts
The science of shopping is a practical field that helps retailer, gain a competitive advantage
by better understanding customer behavior and reduce the odds of failure.
Underhill identifies that customer is king and that the role of a retailer is transitory- it
revolves around customer preferences and evolves with changes in their behavior. He
connects retailing environment with the Darwinism theory on Adaptation and concludes that
if retailers don‘t adapt to changing consumers/ customer‘s needs and preference, they might
die out.
Throughout my review, I have
referred several times on the
possibility of applying the concepts
stated by Underhill, to an e-
commerce website.
Important Highlights Thoughts
Tanisha Mehrotra
―It is not the most intellectual or the strongest of species that
survives; but the species that survives is the one that is able to
adapt to and adjust best to the changing environment in which
it finds itself.”
Charles Darwin
It is not the strongest retailer that will survive; the one that
survives will be the able to adapt and adjust best to the changing
consumer preferences and retail environment
Paco Underhill in his book ‗Why We Buy‘, Talks elaborately
about the factors that affect consumer‘s behavior when they
enter a retail store for purchase. Identification of these behaviors
can help retailers strategize their offering better to succeed in
their endeavors.
I, through this book review, intend to highlight these factors
mentioned in the book by Paco Underhill and offer my
understanding from the reading. I have also given my thoughts
on the applications of the concepts proposed in the book to seek
relevance in the context of ‗The online world‘.
I have given important highlights of each chapter/section of the
book and further reviewed them by dividing the page into two-
the left side is used to for making notes from the book and the
right side to offer my interpretation.