excite my brain! how do retailers use psychology to increase profit margins?

Excite My Brain

By Principal Psychologist, Geraldine Tan

Behavioural Scientist

• Human Behaviour – what cause their behaviour – the sensations that are aroused in their

body

Excite My Brain

Geraldine Tan

Principal Psychologist, The Therapy Room Consultant Psychologist, Mount Elizabeth

Consultant Psychologist, Irlen Dyslexic Centre Registered Supervisor, Singapore Psychological Society

Lecturer, International College of Allied Educators Lecturer, Nanyang Technological University

Crisis Manager, Crisis Resource Network

Behavioural Scientist

• Classical Conditioning – Pavlov’s dog

• Operant Conditioning – A continuation in a behaviour to receive a

consequence

You are the Celebrity

• What is your Signature? • How do we identify you?

How do retailers use psychology to increase profit margin?

• Sight – Halo effect – the association of products to

certain favourable traits – Colours, brightness, product placement

• Scent – Scent marketing using ambient scent

• Sound – Tempo, volume, genre, pitch, tone,

familiarity

How does music affect individuals?

PAD▪Pleasure-Displeasure

▪Arousal

▪Dominance

Qualities of music that influence buying behaviour

Using Background Music to Affect the Behaviour of Supermarket Shoppers (Milliman, 1982)

• Pace of in-store traffic flow was significantly slower with the slow tempo music (M1 mean = 127.53 seconds) than for the faster tempo music (M2 mean = 108.93 seconds)

• Higher sales volumes were consistently associated with the slower tempo musical selections while in contrast, the lower sales figures were consistently associated with the faster tempo music (M1 mean = $16,740.23 compared with M2 mean = $12,112.85) ! as customers move more slowly through the store, they tend to buy more

The effect of music on perceived atmosphere and purchase intentions in a restaurant (Wilson, 2003)

• Four musical styles (jazz, popular, easy listening and classical) and no music were played in a restaurant over two consecutive weeks

• Classical, jazz and popular music were associated with patrons being prepared to spend the most on their main meal.

• More upbeat styles of music were associated with a greater number of people consuming three or more drinks

• Patrons perceived the restaurant to be more downmarket and more tacky when they did not consider the music to be appropriate

Physiological Changes that you can influence

MUSCLE TENSION

Music and Neurological Impact

DOPAMINE SEROTONIN OXYTOCIN

(9% higher)

• Brain reacts to sound and produces emotions through psychological mechanisms:

Music and Neurological Impact

1.Brain Stem Reflex 2.Evaluative Conditioning 3.Emotional Contagion 4.Visual Imagery 5.Episodic Memory 6.Music Expectancy

How do retailers use psychology to increase profit margin?

• Sight – Halo effect – the association of products to

certain favourable traits – Colours, brightness, product placement

• Scent – Scent marketing using ambient scent

• Sound – Tempo, volume, genre, pitch, tone,

familiarity

What type of music?

1. Discrete instrumental music – enhance food

2. Loud music with fast tempo – higher table turnover

3. Classic holiday music – elevates positive moods

What is your BRAND?

• Appeal – Favourable traits

• Allure – Drawing people to come towards your product

• Arouse – Dilate pupils, Increase heart rate, a flush

rising on the face.

You are the Celebrity

• What is your Signature? • How do we identify you? • What is your personality?

What is YOUR Brand?

Proudly brought to you by:

Orchard Shopping Centre 321 Orchard road, #08-03, Singapore 238866

http://thetherapyroom.com.sg/