The priority rule is valid for shopping tasks
when browsing through the available offer
seems utterly impossible considering
customers’ time engagement

Even in the case of highly engaging categories with an extensive offer, customers feel that browsing through the available alternatives is too time-consuming/impossible so they are more likely to choose products placed at the beginning of the display.

CONSEQUENCES FOR BUSINESS

A manufacturer of makeup (beauty products and accessories) invested in observing customer behaviour in drugstores. The category itself contains over 2000 SKUs and can take up as much as 15 shelf racks. Results of the observation shows that regardless of the arrangement of products, the most interest is always evoked by the first shelf rack. In comparison with the first rack, the 2nd generates -8% chances of purchase, the 3rd -20% and on the 4th rack the probability of interest is reduced by 50%. The project unambiguously determined the objective of the manufacturer’s negotiations with the retailer.

CASE STUDY

A manufacturer of makeup (beauty products and accessories) invested in observing customer behaviour in drugstores. The category itself contains over 2000 SKUs and can take up as much as 15 shelf racks. Results of the observation shows that regardless of the arrangement of products, the most interest is always evoked by the first shelf rack. In comparison with the first rack, the 2nd generates -8% chances of purchase, the 3rd -20% and on the 4th rack the probability of interest is reduced by 50%. The project unambiguously determined the objective of the manufacturer’s negotiations with the retailer.

BUSINESS RESULTS

Unfavourable placement of a product at the very end of a long row racks can reduce sales chances even by 93%.

TIPS BEFORE APPLICATION:

  • Ask yourself: What is the involvement in the category? Does its character indicate people would be likely to devote time to asses alternatives on the shelf/display?
  • Observe customers’ behaviour in the store and compare sales data with the shelf layout – is there anything clearly indicating the priority rule effect?