Final answer:
Storefront displays are an effective marketing tool used in physical retail stores to influence purchase decisions, where a significant percentage are made. Effective displays, as well as strategic television advertising and brand reputation, can augment sales.
Step-by-step explanation:
The subject in the provided statement refers to storefront displays that offer manufacturers a unique opportunity to engage with customers directly at the point of purchase. These displays are placed strategically within retail environments to catch the eye of the shopper, leveraging the psychology that between 70 and 80 percent of all retail purchase decisions are made in-store. Furthermore, storefront displays are a marketers' tool to influence consumer emotions and promote the perceived value of a product. As such, these displays can significantly boost sales, sometimes by as much as 65 percent.
Understanding consumer behavior is critical for retailers and manufacturers alike, with major purchases often being preceded by multiple store visits, as demonstrated in a survey mentioned within Table 2.40. Moreover, retailers and advertisers find television an irresistible platform to promote their goods and services. TV advertising allows for targeting specific market demographics via the sophisticated data provided by network and cable companies.
While physical retail presence offers immediate tangible interaction with products, some firms, like L.L. Bean, have thrived despite the lack of physical storefronts. They have made a successful business through mail order, telephone, and online sales. They combat the problem of imperfect information by providing a money-back guarantee and maintaining a strong reputation for quality.
The competition between small retailers and large superstores is evident, with the latter often prevailing due to factors like scale and reach. Yet, for consumers, the end benefit lies in the increased productivity of the retail market, resulting in a larger variety of goods at lower prices. As the retail landscape evolves, the strategies employed, be it storefront displays or multi-channel selling, continue to play a critical role in consumer engagement and sales.