Question

Which of the following retail approaches is aimed at encouraging impulse purchases?

1) Merchandising complementary products together
2) Creating a functional atmosphere
3) Airing advertisements based on seasonal patterns
4) Playing the latest pop song in the store

Answer 1

The retail approach aimed at encouraging impulse purchases is merchandising complementary products together, such as placing related items near each other to increase the likelihood of additional, unplanned purchases.

Step-by-step explanation:

The retail approach aimed at encouraging impulse purchases is merchandising complementary products together. This strategy involves placing related items in close proximity to one another in a store, thereby increasing the likelihood that a customer will pick up additional items on impulse. For example, placing sunscreen next to swimsuits can encourage customers to buy both, even if they only initially intended to purchase one.

The advent of department stores significantly advanced this concept by offering a wide variety of goods, which not only catered to necessities but also to the desires for small luxuries and impulse buys. Furthermore, department stores used storefront displays and strategic product placements to manipulate shopper emotions and promote impulse purchases.

Moreover, the Hotelling Model suggests that location can play a crucial role in sales, where firms located closer to customers or in high-traffic areas can achieve higher sales, which is especially true for impulse items that are often bought on the go.