Which Products are More Responsive to In-Store Displays: Utilitarian or Hedonic?

• Published in: Journal of retailing Vol. 97; no. 3; pp. 477 - 491
• Main Authors: Garrido-Morgado, Álvaro, González-Benito, Óscar, Martos-Partal, Mercedes, Campo, Katia
• Format: Journal Article
• Language: English
• Published: Greenwich Elsevier Inc 01.09.2021; Elsevier Limited
• Subjects: Congruency principle; Consumers; Decision making; Dual information processing mode; Hedonic product; In-store display; Information processing; Marketing; Purchasing; Retail stores; Signs; Utilitarian product; Utilitarian product; In-store display; Hedonic product; Dual information processing mode; Congruency principle
• ISSN: 0022-4359; 1873-3271
• DOI: 10.1016/j.jretai.2020.10.005

[Display omitted] •Not all ISD types are equally effective in stimulating product sales.•In store displays’ effects depends on the information processing they trigger.•Utilitarian versus hedonic nature moderates the effects of in store displays.•Synergistic effects of displays and promotions largely depend on their congruency. In-store displays aim to boost sales of both utilitarian and hedonic products. Noting typical differences in the information processing and purchase behavior evoked by these product types, and building on congruency theory principles, the authors propose that different types of in-store displays (i.e., island, end-of-aisle, or shelf signage) are more appropriate for utilitarian versus hedonic products, and the use of price or product promotions might reinforce these effects. With a database that combines three data sources (scanner, observational, and survey), this article presents an analysis of a market share model at the SKU level. The results confirm that in-store displays have differential effects on sales, depending on their characteristics; congruency between the decision-making process of utilitarian versus hedonic products and the characteristics of in-store display types moderates their effectiveness in terms of SKU sales. Shelf signage strongly increases the sales of utilitarian products, whereas island and end-of-aisle displays increase sales of hedonic product categories more effectively. The use of congruent promotions creates synergistic influences that reinforce these effects. In particular, price promotions improve the impact of shelf signage on utilitarian products, and product promotions strengthen the impacts of island and end-of-aisle displays on hedonic products. These results extend prior research on in-store marketing actions and the nature of utilitarian versus hedonic products, as well as providing recommendations for retailers and manufacturers seeking to optimize their retail space and commercial budgets.