Practise identifying consumer heuristics, applying anchoring and point-of-purchase cues, and designing controlled studies of multiple-unit pricing or suggestive selling.
Customers at a supermarket frequently purchase one tin of tomatoes at a time. The manager of the supermarket wants to encourage customers to buy multiple tins of tomatoes.
Suggest one way the manager could use her understanding of 'point of purchase decisions' to encourage customers to purchase multiple tins of tomatoes.
Award 2 marks for an outline of the suggestion with relation to the context.
Award 1 mark for a basic outline of the suggestion.
Likely suggestions:
- Point of purchase promotion/multiple-unit promotion - e.g. ‘Tomatoes on sale - buy 5 cans for £2.00
- Purchase quantity limit - 'Tomatoes - limit 5 per customer'
- Explicit product quantity anchor in advertising 'Tins of tomatoes - buy 5 for your cupboard'
- Suggestive selling - customer has something suggested to them to encourage sales e.g. suggest a meal for dinner tonight that requires multiple tins of tomatoes.
Example:
The manager could encourage their customers to buy multiple tins of tomatoes by putting signs up near the tins of tomatoes advertising multiple-unit promotion. (1) The signs would say 'Tomatoes on sale - buy 5 cans for £ 2.00 '
Other appropriate responses should also be credited.
2
Context = encouraging purchase of
multiple tins of tomatoes.
Point of purchase promotion - 'Buy 5
and save £1'
Just state offering discount = 0 marks 1 mark identifying way e.g. purchase quantity limit or outlining it. 1 mark link to tomatoes as an example.
Do not credit explaining why this will
lead to purchasing multiple tins -answers b(i).
For the suggestion you gave in part (a):
Explain how this could change the customers' thinking so that they purchase multiple tins of tomatoes.
Award 2 marks for an explanation of why this suggestion would change customers' thinking so they purchase multiple tins/cans of tomatoes.
Award 1 mark for a basic explanation of why this suggestion would change customers' thinking so they purchase multiple tins/cans of tomatoes.
Likely explanations:
- Multiple-unit promotion - customers believe that the only way to get the discount is by purchasing multiple units or the promotion makes the customers see a larger than normal purchase as attractive.
- Purchase quantity limit - This gives the impression that the tins of tomatoes are scarce and that is why the store has set a limit. The customer may believe that it could be difficult to purchase tomatoes in the future so purchases more tins than they need.
- Product quantity anchor - This is suggestive selling and suggests to the customer that they should consider purchasing more for their cupboard in order to stock up. It is giving the customer a specific number of tins to purchase which will anchor this cognition in the mind of the customer and encourage some to purchase this number of tins.
Example
Multiple-unit promotion would encourage customers to purchase more tins of tomatoes as it is suggesting to the customer that a larger than normal purchase is attractive. (1) The customer believes they are getting a discount by purchasing 5 tins rather than 1 so many of the customers will want this discount and purchase more tins. (1)
Other appropriate responses should also be credited.
2
Credit responses that outline the results of Wansink's study as evidence to show that the suggestion will work.
Needs to be linked to suggestion from part (a) for 2 marks.
Need to include what customer is thinking and
why would this lead to purchase of multiple tins for 2 marks.
For the suggestion you gave in part (a):
Explain one problem with this suggestion.
For the suggestion you gave in part (a):
Explain one problem with this suggestion.
Award 2 marks for an explanation of the problem with suggestion from 7(a).
Award 1 mark for a basic explanation of the problem with suggestion from 7(a).
Likely problems:
- Customers may feel manipulated/tricked by the supermarket and shop elsewhere.
- In order to afford the multiple tins, the customer may not purchase other items so the overall sales at the supermarket will not increase.
- Customers can use self-generated (internal) anchors such as having a fixed budget/shopping list for the shopping and no promotion/suggestive selling will convince the customer to purchase more tins of tomatoes.
- The customer will look at the individual price of a tins of tomatoes and realise they are not saving any money so they do not purchase multiple tins.
Example:
One problem with multiple unit promotions is it is not possible to know if the customer was confused by the promotion and thought they had to purchase 5 tins in order to get the discount. (1) If this isn't true and the discount is available when purchasing 1 tin, the customer may realise this when they are next shopping. They may feel manipulated by the supermarket and start shopping elsewhere. (1)
Other appropriate responses should also be credited.
2
Individual differences/may not work for everyone is creditworthy.