excite my brain! how do retailers use psychology to increase profit margins?
TRANSCRIPT
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?
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Orchard Shopping Centre 321 Orchard road, #08-03, Singapore 238866
http://thetherapyroom.com.sg/