In the modern retail environment, it is becoming increasingly difficult to use packaging to stand out. The shelves of stores are packed with fantastic fonts, strategically designed color combinations, and unique product forms all competing to draw the attention of consumers.
But is it possible that attempting to stand out in a crowd is actually hurting your business? Our research shows that for products consumers find embarrassing to buy — for example, condoms, acne cream, hemorrhoid cream, and lice shampoo — having packaging that stands out may reduce consumers’ purchase intentions. While this may seem obvious, a quick trip to your local pharmacy aisle shows how often embarrassing products are packaged in ways designed to grab your attention, with loud fonts or bright colors. This is particularly pertinent given the decline of in-store sales for these items. Consumers are moving toward purchasing their embarrassing — and non-embarrassing — products online, which has increased shipping costs for retailers who now struggle to profit from the sale and distribution of such small, limited purchases.
To understand the role of packaging for sensitive products, we undertook a field study, several lab experiments, and a virtual reality lab study. For the field experiment, data was collected by examining the purchase frequency of various embarrassing products based on the products’ color, shape, and graphics. Several lab experiments using written scenarios and pictures depicting differently packaged products were used to gain a more specific, controlled understanding of the variables that make products seem more embarrassing and anonymous, ultimately affecting intentions to purchase these products. A virtual reality study was also conducted where study participants viewed a 360-degree video recorded in an actual pharmacy. The video was viewed on a VR headset, which allowed participants to look and turn all around the pharmacy as they made their way to the focal products, where they were asked which product they would purchase. Virtual reality technology ensures that all participants engaged in an identical experience while involved in an immersive experience.
The results of all these studies found that consumers were more likely to buy embarrassing products when their embarrassment was mitigated by more-anonymous packaging. Specifically, consumers found products packaged in boxes with cool colors, small lettering, and a picture of the product to be more anonymous (and appealing) than products packaged in pumps or tubes, with warm colors, medium or large lettering, and no picture. The findings show that the more anonymous a product looks, the less embarrassing a consumer finds it, and the more likely they are to purchase it.
Additionally, our research suggests that retailers should consider the location of the embarrassing product. Consumers found endcaps — the displays on the end of an aisle — more embarrassing, which caused anxiety, and were likely to avoid them in favor of an in-aisle location. That may come as a nasty shock to brands that pay to have that prime endcap location. Privacy bags or baskets may also help shoppers feel more anonymous as they walk around the store with their selection.
Another concern is theft. Some customers would rather risk breaking the law and stealing certain products than being embarrassed by purchasing them. Some retailers have reacted to this by locking up embarrassing products, thus requiring employee interaction to get the product. Understandably, this can depress sales — no one wants to ask a clerk where to get the hemorrhoid cream. A better solution to this problem could be the use of vending machines (as condoms are often sold in public bathrooms). Using vending machines to sell embarrassing products may be a way in which stores can successfully minimize embarrassment, as customers can make their purchase without having to interact with employees.
Another useful strategy: Our research has found that any type of promotion (say, coupon, discount, or bonus buy) is enough to convince most consumers to overcome their squeamishness and buy an embarrassing product.
But the simplest solution may be the one staring us in the face: changing the packaging. Our studies show that this spurs sales while maintaining price discipline — the best solution in most cases.
from HBR.org http://ift.tt/2rX4leN
