In-store Signage, Cash Wraps and POP Displays

In the eyes of the consumer, we walk through our local retail store with signs hanging down from the ceilings, displays surrounding us, just hoping to catch our attention and tell us the "next great deal." But, is it really the "next great deal" or are we being persuaded into thinking it is?

There is an empirical generalization developed by Yoram Wind and Byron Sharp that states, "In-store digital signage featuring 'newsworthy' information (e.g., news items, seasonal offers, promotions) has a markedly favorable impact on sales. The effect is stronger for hedonic (food and entertainment) products." I have worked in retail for almost five years now and I completely agree with this generalization, but I also have questions to consider.

When thinking about in-store digital displays, I immediately think of Professor Costanzo talking about point-of-purchase (POP) displays and their effectiveness. Why do marketers use them? Well, they demand attention by capturing customer's attention when they are in the mood to purchase, they're inexpensive, they highlight key features with catchy designs, and they draw attention to sales and specials. This is all true, but I do have a real life example of POP displays. I have worked at Kmart for the last five years, specifically in the fine jewelry department. Over the summer, I was instructed to place these displays of cosmetics and perfumes on the jewelry counter (located near the checkouts, which I'll speak of later). At first I thought, why put them here if it just prevents customers from seeing the jewelry correctly? But, I noticed how quickly these products were being sold. For example, we got these NFL sponsored sunglasses in. I put the display together and put them right on the counter near the checkouts and within a week, they were all sold. It really showcased the power of POP displays.

The next concept I linked to in-store signage is the term cash wrap, another idea that Professor Costanzo stressed about. A cash wrap is, essentially, the checkout lane. It is here that customers find inexpensive, low-involvement products (e.g., gum, chapstick). These relate back to in-store signage because I was placing low-involvement, inexpensive products on the jewelry counter right near the checkouts. So, when customers were getting ready to leave and saw the sunglasses, for example, they grabbed a pair and bought them. The sign was designed to catch the customer's attention right before checking out.

An important implication from the generalization is the emphasis on hedonic products. This means the products produces a type of value for the product versus utilitarian products. Utilitarian products serve the purpose of completing a task, like toothpaste. So, the generalization is saying that products who produce value are perceived as more effective in catching the consumer's attention. If a customer sees a POP display for back-to-school deals on clothes versus a POP display for microwaves, they are more likely to generate favorable attitudes towards the clothes because they have more value.

After working in retail and studying marketing tactics (POP displays and signage), I have become more aware of these things and, necessarily, don't "fall" for the marketing persuasion that in-store signage displays. But, for a consumer without any prior marketing knowledge, these in-store signages have proven to generate and impact sales.