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Inside the Mind of the Shopper: The Science of Retailing, Second Edition

Book Description

World-Renowned Shopper Scientist Dr. Herb Sorensen Reveals: How Today’s Shoppers Think, Behave, and Buy
New Insights for Creating High-Profit Retail Experiences!

In retail, there’s only one number one. It’s not Wal-Mart or Costco, or even Amazon: It’s the shopper. To create high-profit retail experiences, you need to know exactly how your shopper thinks, feels, and acts at the point of purchase. Dr. Herb Sorensen illuminates today’s consumer behavior in the context of radical technological and societal changes that are transforming retail.

Building on these deep consumer insights, Sorensen introduces revolutionary new approaches to improving performance in self-service retail—whatever you sell, via bricks or clicks. You’ll discover today’s best ways to get the right items to the right customers when they want them… surpass the expectations of customers trained by online retail… own every consumer “moment of truth”!

New coverage includes:

  • Converging clicks and bricks into a super-high-efficiency retail engine

  • Building the “webby store”: visually managing every display like a web page

  • Bringing product and shopper together via optimized navigation and search

  • Measuring and promoting shopper efficiency

  • Motivating long-cycle purchases: cars, tech, appliances, apparel, and more

  • Speeding today’s shoppers from “want” to “need”

  • Table of Contents

    1. About This E-Book
    2. Title Page
    3. Copyright Page
    4. Praise from First Edition of Inside the Mind of the Shopper
    5. Praise for the Second Edition of Inside the Mind of the Shopper
    6. Dedication
    7. Contents at a Glance
    8. Contents
    9. Acknowledgments
    10. About the Author
    11. Preface: Who Is #1?
    12. Introduction
      1. Bidirectional Search
      2. Products/Shoppers Competition
      3. Open Space Actually Attracts Shoppers—Think Navigation!
      4. Review Questions
      5. Endnotes
    13. Part I: Toward Total Convergence of Bricks-and-Mortar and Online Retailing
      1. 1. How We Got Here and Where We Are Going
        1. What Is Selling?
        2. Selling Requires a Salesperson, Not a Retailer
        3. SELLING: Focus on the Big Head of What the Shopper Wants to Buy
        4. Stop Shouting at Your Shoppers
        5. How We Got This Way
          1. Early Shopping in America
          2. The Birth of Self-Service Retail
        6. Can Selling Make a Comeback in the Twenty-first Century?
        7. The Four Dimensions of Purchasing
          1. Now! Purchases (Advantage—Bricks Retail)
          2. Surprise/Delight Purchases (Advantage—Bricks Retail)
          3. Routine/Autopilot Purchases (Advantage—Online Retail)
          4. Frustration/Angst Purchases (Advantage—Online Retail)
        8. Where Is Selling Going?
        9. The Selling Prescription
        10. The Shopper’s Ideal Self-Service Retail Experience
        11. What Does the Ideal Self-Service Retail Store of the Future Look Like?
          1. The Dark Store
          2. Step-by-Step
        12. The Ever-Changing Retail Landscape Favors an Evolving Retailer Species
        13. Review Questions
        14. Endnotes
      2. 2. Transitioning Retailers from Passive to Active Mode
        1. Passive Merchandising No Longer Suffices in a Shopper-Driven World
        2. The Journey to Active Retailing and the Five Vital Tenets of Active Retailing
        3. The Five Vital Tenets of Active Retailing
        4. Tenet 1: Measure and Manage the Shopper’s Time in the Store
        5. A Shopper’s Time Should Be as Important to the Retailer as It Is to the Shopper!
        6. Wasted Days and Wasted Nights
        7. Implications for Active Retailing
        8. Steps for Managing Shoppers’ Time in Store
        9. Tenet 2: Focus on the Big Head
        10. Implications for Active Retailing
        11. Retailers Attempting to Manipulate or Extend a Shopper’s Trip Are on a Fool’s Errand
        12. Steps in Managing the Big Head
        13. Tenet 3: Assist Shoppers as They Navigate the Store
        14. Mr. Retailer, Tear Down This Wall!
        15. Implications for Active Retailing
        16. Activating the Dominant Path
        17. Steps in Assisting Shoppers as They Navigate the Store
        18. Tenet 4: Sell Sequentially
        19. What Comes First, The Chicken or the Egg?
        20. Does the Order of Things Matter?
        21. Implications for Active Retailing
        22. Steps for Sequential Selling
        23. Tenet 5: Managing the Long Tail
        24. So Where Does This Leave the Tens of Thousands of Other Items That Populate the Shelves of the Store?
        25. “Nobody Goes There Anymore. It’s Too Crowded”—Yogi Berra
        26. Implications for Active Retailing
        27. Steps in Managing the Long Tail
        28. A Passing Thought about the Role of Displays in Active Retailing
        29. Closing Thoughts
        30. Review Questions
        31. Endnotes
      3. 3. Selling Like Amazon Online and in Bricks Stores
        1. Amazon Selling Online
          1. Amazon Point of Focus #1: Navigation—Simple and Fast
          2. Amazon Focus: Selection
          3. Amazon Focus #2: Immediate Close
          4. Amazon Focus #3: Affinity Sales and Crowd-Social Marketing
          5. Amazon Focus #4: Reaching into the Long Tail
          6. Amazon Focus #5: Info, Info, Info
        2. Amazonian Selling in Bricks Stores
          1. Amazonian Bricks Focus #1: Navigation—Simple and Fast
          2. Amazonian Bricks Focus: Selection
          3. Amazonian Bricks Focus #2: Immediate Close
          4. Amazonian Bricks Focus #3: Affinity Sales/Crowd-Social Marketing
          5. Amazonian Bricks Focus #4: Reaching into the Long Tail
          6. Amazonian Bricks Focus #5: Info, Info, Info
        3. Review Questions
        4. Endnotes
      4. 4. Integrating Online and Offline Retailing: An Interview with Peter Fader and Wendy Moe
        1. How Did the Internet Change the Study of Shopping Behavior?
        2. In What Way Are the Online and Offline Patterns Similar?
        3. How Are Paths in the Supermarket Similar to Paths Online?
        4. Can Online Retailers Learn from Offline Shopper Behavior?
        5. Tell Me about What You’ve Found Out about Crowd Behavior?
        6. What Have You Learned about Licensing and Sequencing—Such as the Purchase of Vice Items After Virtue Items?
        7. What Have You Found Out about the Pace of the Shopping Trip?
        8. What Have You Learned about Shopping Momentum?
        9. What Have You Learned about the Role of Variety in Shopping?
        10. What Have You Learned about Efficiency? Is It Better to Allow Shoppers to Get Quickly In and Out of the Store, or Should Retailers Try to Prolong the Trip?
        11. This Raises the Question of Whether Shoppers Are in the Store for Utilitarian Reasons Alone or If They Are Interested in an Experience. What Is the Difference?
        12. What Have You Learned so far about What Shoppers Are Looking for When They Go Online?
        13. How Do Online Retailers Use These Insights about Shopper Visits?
        14. This Captures the Whole Point of What We’ve Called “Active Retailing.” Online Is Leading Offline in This Area. How Does This Come into the Physical Store?
        15. How Do Some of the Complex Forces of Shopping Behavior Play Out? Why Is There a Need for Better Modeling?
        16. What Topics Are You Studying Now?
        17. Review Questions
        18. Endnotes
      5. 5. The Coming Webby Store
        1. The “Ideal” Sized Store
        2. Review Questions
        3. Endnotes
    14. Part II: Going Deeper into the Shopper’s Mind
      1. 6. Long-Cycle Purchasing
        1. Higher Cost Leads to Anxiety and Indecision
        2. Longer Shopping Process
        3. Role of Time and Building Desire for Long-Cycle Purchasing
          1. A Word about Building Desire
          2. Wish
          3. Want
          4. Need
          5. Got
        4. The Shopper Engagement Spectrum
        5. Speeding the Shopper along the Path-to-Purchase: First Build Desire and Facilitate the Tipping Point
          1. Life Changes
          2. Product Benefits
          3. Ability to Pay
        6. The Shopper’s Journey
          1. Early in the Shopping Journey
          2. Educate
          3. Late in the Shopping Journey
          4. Validating Choice
          5. Complete the Transaction
          6. Mobile
          7. Again, the Sales Associate Is Key to Closing the Sale and Completing the Transaction
          8. Conclusion
        7. Review Questions
        8. Endnotes
      2. 7. The Quick-Trip Paradox: An Interview with Mike Twitty
        1. How Do You Define a Quick Trip?
        2. Why Do Shoppers Make So Many Quick Trips?
        3. How Do Pre-store Decisions Affect the Quick Trip?
        4. What Factors Do Consumers Consider in Deciding Where and How to Shop?
        5. How Do Consumers Think about Shopping Trips?
        6. What Did You Learn from This Research?
        7. How Could It Be that Even Warehouse Clubs and Supercenters—Whose Design so Strongly Encourages Stock-up Shopping—Receive More Quick Trips than Stock-up or Fill-in Trips?
        8. Given that Quick Trips Account for Two-thirds of Shopping Trips, How Can Retailers and Manufacturers Cater to these Shoppers?
        9. What Is the Quick-trip Paradox?
        10. Given this Paradox, How Can Retailers and Manufacturers Capitalize on the Quick Trip?
        11. Could the Shoppers’ Motives for Making the Trip Offer Insights into the Best Assortment to Offer?
        12. How Can Retailers Best Meet the Needs of Quick-Trip Shoppers?
        13. What Are the Implications for Retailers and Manufacturers?
        14. Review Questions
        15. Endnotes
      3. 8. Three Moments of Truth and Three Currencies
        1. Moments of Truth
        2. Seeing the Truth: Eyes Are Windows to the Shopper
        3. Reach: Impressions and Exposures
        4. Stopping Power (and Holding Power)
        5. Closing Power
        6. Three Currencies of Shopping: Money, Time, and Angst
          1. Time
          2. Angst: A Vague and Unpleasant Emotion
        7. A Complex Optimization
        8. Review Questions
        9. Endnotes
      4. 9. In-Store Migration Patterns: Where Shoppers Go and What They Do
        1. If You Stock It, They Will Come
        2. Understanding Shopper Behavior
        3. First Impressions: The Entrance
        4. Shopper Direction: Establishing a Dominant Path for the Elephant Herds
        5. The Checkout Magnet
        6. Products Hardly Ever Dictate Shopper Traffic—Open Space Does
          1. Open Space Attracts: The Call of the Open Aisle
          2. The Great Pyramids
          3. New Angles
        7. Managing the Two Stores
        8. Five Store Designs
          1. The Enhanced Perimeter
          2. The Inverted Perimeter
          3. The Serpentine Design
          4. The Compound Store
          5. The Big Head Store
        9. Where the Rubber Meets the Linoleum
        10. Review Questions
        11. Endnotes
    15. Part III: Conclusions
      1. 10. Brands, Retailers, and Shoppers: Why the Long Tail Is Wagging the Dog
        1. Where the Money Is in Retail
        2. Massive Amounts of Data
        3. Shifting Relationships
        4. A Refreshing Change: Working Together to Sweeten Sales
        5. Beyond Category Management
        6. A New Era of Active Retailing: Total Store Management
        7. Pitching a Category’s Emotional Tone More Precisely
        8. Retailers Control Reach
        9. The Urgent Need for Retailing Evolution
        10. Review Questions
        11. Endnotes
      2. 11. Conclusion Game-Changing Retail: A Manifesto
        1. The Package Is the Brand’s Ambassador
        2. Review Questions
    16. Afterword: Endcaps and the “Promotional” Store
      1. Endnotes
    17. Index