Final answer:
Grocery stores use the strategy of placing inexpensive items near checkout lanes to capitalize on impulse buying, a type of unplanned purchase made spontaneously by consumers. Retailers aim to increase sales by tapping into customers' immediate urges to buy. Impulse buying challenges the traditional economic assumption of complete consumer self-control.
Step-by-step explanation:
Grocery stores and other retailers often place inexpensive items near the checkout lanes because they want to take advantage of consumers' tendency toward impulse buying, which is an unplanned buying behavior resulting from a powerful urge to buy something immediately. This sales tactic is based on the concept that when consumers are by the checkout, they are more susceptible to making quick purchases without fully considering their decisions. These purchases are typically small, non-essential items such as candy, magazines, and snacks. Retailers strategically place these items to encourage customers to add one last thing to their cart. The products are usually positioned at eye level and within easy reach to maximize the likelihood of impulse buys.
Impulse buying can be influenced by a variety of factors, including special deals or promotions, the appeal of the product, emotional state, and the convenience of the product's placement. Retailers may use a range of strategies to encourage this behavior, understanding that it can significantly increase their overall sales.
An economist would describe this scenario as taking advantage of the impulse buying behavior. In a broader sense, behavioral economists have identified that traditional economics, which assumes complete self-control among consumers, does not always account for these spontaneous and often irrational purchasing decisions. Instead, modern economists consider 'nudges' towards more rational behavior, recognizing that consumers don't always act in their own best financial interest.