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Show The Salt Lake Tribune BUSINESS Friday, December 24, 1999 CENTERPIECE Retailers Reach Out to Grab Consumers 1899 sedans to repair fuel pumps, | Bloomberg News reported / ‘Thursday. Kia will replace faulty fuelpump connectors, which could stop operating cause the en- gine to stall. Owners will be notified by mail and dealers will reyoo the connectors for free, Kia °-gaid. “ Automakers typically pay for 2"8uch repairs outof a warranty re- serve, and it’s not unusual for a ‘¢ompany to have more than a <: dozen recalls a year. Kia issued a *srecall last month on the samecars to repair the windshield wipers. wx. Kia, the maker of the Sephia Sbompact car and Sportage sport: utility, sold 125,139 vehicles innthe ‘U.S. through November,a 58 pereent increase from the year“earlier period. ‘: KIDS Backpack Carriers « Recalled for Seat Strap , WASHINGTON — Approxiyamately 26,000 backpack child careviers are being recalled by the ‘manufacturer because ofa faulty seat strap. The seat height adjustment sestrap on the Kelty K.I.D.S. carriers mucan slip outof the buckle. A child ‘“-tould slide downward unexpect- « @dly, and fall out of the carrier. . Kelty, based in Boulder, Colo., is the carriers in conjunc- - tion with the Consumer Product Safety Commission. Therecall affects six models of Bioareteny influenced by CHICAGO — After decades ofdissecting the “Your emotions while shopping have been hijacked. Our this much: When shoppers blink less they buy minds become impaired, and American consumer,retailers know at least more. Thetheory goes like this. As customers enter a typical retail environment, say a supermarket, they're bombarded with choices. In aisle don’t wantto think; we want to be led.” attention. With such an assault on the senses, the rational mind shuts down. Theblink pattern slows, from 28 beats per minute to a mere 14. Andthe shopperslips into a subdued, passive that suddenly seems like a heck of a bargain. so customers are forced to roam the ent “Your emotions while shopping have been All of these efforts help to increase a store's “capture rates,” the term retailers use to de- behavior and has done work for Nabisco Brands, Johnson & Johnson, HimmelNutrition andothers. scribe how often a product will attract the average consumerandresultin a sale. “Today, in some ways, every decision is a new one, and nothing can be taken for grant- “Our minds become impaired, and we see ed,” writes Paco Underhill, author of Why We if they placed theflashiest stuff near the front, and mundanestufflike socks or underwear far York behavioral research firm that employs into the store, shoppers would traipse by all sorts of tempting things first before buying the staples. Montgomery Ward & Co.is redesigning its stores to put in a racetrack layout that features wide aisles and clear sightlines, making shopping easier and more inviting. In the supermarket space, much of the marof point-of- Buy andthedirector of Envirosell Inc., a New hidden cameras andersatz customers wielding habitat. in their nat oo When, it comes to targeting consumers at best boostsales by taking an interdisciplinary their most compliantpoint, more and more a tailers are that their bestselling tool is the store itself. This revelation dawned oa the retail industry as the traditional channels of ene — network television, cable, and became ee more fragmented, making it harderto reach a mass audience. Brick-and-mortar spaces serve as the one approach that borrows from anthropologists, art historians, design gurus, urban planners and evenactors. Andthe experts have come up with a funny bag of tricks, including in-store spies to shadow customers, record their buying habits and figure out ways to manipulate the retail environment exactly to their needs — or consumers’ we to study Big ‘shoppers suddenly ceased to buy on impe ihe declares,“our entire economy would lesses. Forinstance, manyretail specialists bers? that roughly 70 percent of all purchase dec’ sions are made impulsively in the store. Shoppers typically spend less than five seconds Hikingay a buy, according to the folks . ‘The carriers were sold nation- wide from March thro mber of this year for between $100 , and $250. Carriers sold before ‘ March 1999 havea differenttype of ‘seat adjustmentstrap, and are not +, included intherecall. ¢. Consumers should immediately stop using the carriers, and contact Kelty at (800) 423-2320 between10:30a.m. and 7:30 p.m. EST, » Monday through Friday, to find *- out howto get a free repair kit. Bubbly stores have added lounge chairs, not so much Muchless subtle are theadvertisements that grocery stores, in particular, seem intent a slapping onto virtually every surface, from the The Swallow . tion method, bubblies are pouring ¢. forth from about 30 of New York’s +137 wineries in the run-up to 2000. = Sparkling winesales looklikely to set reco! year in wine re- * gions everywhere, and Long Island, the Hudson Valley and the Finger Lakes are no exception. Justlike his pioneering the 1960s that delicate European grapes could be grown in the eastern United States, Frank is the charge in New York to grow all eee deemed esvential for a = genuine bubbly — chardonnay, ‘pinot noir and pinot meunier. ix, He follows the exacting moise” — the ‘bottle-fermentation process re‘fined in the French province of “Champagne over hundreds of trained winemaker juipment, racks whatthey like to buy.” With a barrage ofbrands each year, Schober going back to the store environment,” he said. drowning in anonymity and losing consumer a “he only way to reach a mass audience is by Ofcourse, the biggest selling foolof all may be the products themselves.In recentyears, as certain categories such as milk and cookies have matured and sales have flattened, marKeters have figured out an ingenious way to ating in Canada as NPS Allelix. Q anon Corp. has rept: acupofjoe;fidesbuying into an image too. Chicago has its share of su i behemoth shops serve as high-profile advertisements for the founder Leslie Tucker said products must elicit dividers at the checkout counterto the skins of an emotional response. fruits and vegetables to the very flooritself. Supermarkets also do other things, like placing toy products at knee-high levelto entice children, scattering shopping baskets 7 derstanding how consumers physically use the store space is essential to driving sales, Just as shoppers may be swayed by music or like they're a good mother or daughter. So peo- Zevex International Inc. won approval to supply nutritio “People really perceive themselves by the brand they use,” she said. “They wantto feei ple want to make sure the brands they buy makethe right impression.” tain Health Care ofSalt Lake City. Wine Spectator magazine 's strictly a matterofstyle, nota = matter of quality.” é By whatever label or produc- ber, editor of the P-O-P Times trade magazine in Skokie, Mil. “Americans are very much impulse buyers. brand, drawing the attention of the millions of ee whocruise the Magnificent Mile each Thomas Matthews © i Continued from D-1 New York Burrito has opened at 6913 S. 1200 East in Salt Lake has exploded of store longer. “At the value end, I think [French champagne] have been caught up and‘Derhapseven surpassed.” : Well Worth % that they're actually shelling out money. Retailers such as clothing boutiques and book- for customers’ comfort but to keep them in the Industry Safety from the Business Rounitavlea national association of U,S. corporations, Weyher specializes in heavy induatrial plant construction. “Pointracy ive become hyper:important to the retailers,” said Bill presidentat Leo Burnett, Chicago’s advertising powerhouse. a the experience ing water”With a hip cafe atmosphere, complete with leather couches and poetry readings. Starbucks drinkers feel they get more than just therapy to lure customers into that passive Robert F. Weyher Jr. es her Construction in Salt Lak. City has eared the Construction stands crowding the aisles. With the heightened emphasis on capturing consumers’ attention right in the store, oe point-of-purchase said, many marketers and manufacturers are purchasing mood.Stores haveinstalled silent cash registers to encourage shoppers to forget smart retailers will find a way to trigger this on response — repeatedly throughoutthe shopping experience andat ev- “has rivals,” some of whom “cracked the $100 million mark,” the magazine said. Q purchase displays, those ubiquitous cardboard across the country. “The leading retailers are using thestore as rather than shouting price and promofan” said Warren Guthrie, executive vice Guthrie points out the ee success of Starbucks, reeoe auni at IQ. Des: ee RSCG/DSW Partners been ranked as the top tech eae in the West with an estimated total billing of$250 million for 1989 by Adweek magazine. The You need images in the store to remind people store For a blue-chip chain, the effect is repeated Sometechniques are subliminal, like piping in soothing music or even employing aroma- rier that L.L. Bean sold underits “L.L. KIDS”label that has the profile products. “Retailers are starting to understand why and how people shop, and making the environment support the shoppin said Johanna Schoss, Sapient’s research Departmentstores have long: discovered that Call it psycho-babble or the science of shopping. But faced with ‘stagnant sales from consumer goods, a effect of advertising and a glut of new products and competing outlets, retailers are heartily embracing such newfangled approaches to persuade shoppers to buy, buy, buy. Merchants are taking a hard look at how to ery turn in thestore. ,» “Kelty” logo on the frame. It is also being recalled. -Lab recommended that Hallmark “districts” that were “landmarked’ less but feel more. We don’t want to think; we wantto be led.” _. Kelty also manufactured a car- ers becamefrustrated and walked away. Using a vocabulary borrowed from urban create “paths”? for customers tr nige store. of 1.Q. Design Group,a brand and package consultancy in New York that studies consumer anne:‘some 400 hours of videotape, the team of researchers, which includes indusing. The researchers could pinpointthe precise throughoutthe store to encourage high-volume sales anddispersing staples like meat and eggs hijacked,” says Terri Goldstein, the co-founder nowcalled Sapient locations in the stores where potential custom- mood and, hence,lies vulnerableto all sorts of impulse buys — like that new Pokemoncereal act with a to investigate. The firm is trial planners and behavioral scientists, concluded that Halimark’s layout was too confus- Terri Goldstein Co-founder of I.Q. Design Group SE Kelty K.LD.S. backpack carriers: « Expedition, Trek, Explorer, "Country, Elite and Town. The carriers are blue, with the Kelty K.LD.S. logo on the backrestof the seat. Toad cages for off-road Q we see less butfeel more. We after aisle, thousands of products shout for welding and fabrication company, has opened at the Utah Industrial Depot in Tooele. Located at 490 S. ten But even someof Frank's high-end competitors, such as Glenora Wine Cellars on nearby Lake, shy away from the term “out of courtesy to the French,” said Ray Spencer, Glenora’s dis- tribution chief. Frank applies it only to topnotch products aged for up to seven years. It is “sacrilege for some of the American wineries making almost undrinkabie spar. —hee’ to call it champagne,” a yeck law dictates that effervescent wine made outside the TRADEWINDS Compiled by Steven Oberbeck ‘The University of Utah Health Network has named John Doane as an internal medicine physician at the Holladay Internal Medical Center. Doane received his medical degree from the Bowman Gray School of Medicine in 1987 and his residency at hospitals affiliated with the University of Utah. EURO RSCG DSW Partners has hired Erardo Diazmontes as an accountsu} in its interactive division. He previously worked atCit . Sarah viously worked for the Ogden Standard-Examiner as a Web designer. Aaron Raymond has been hired as a eeee ously founded and worked at SL Webworks in Logan. pagne Wines Information Bureau thinks U.S. wineries that plunder the word are doing “a real disfavor to consumers because it cre- Diana Hagen has joined the Salt Lake City law firm of Parr Waddoups Brown Gee & Loveless. Doane _Diazmontes Hansen a Raymond 7‘anon of the University of tah College of Law, she will faa her practice on media and joining the firm, she worked as a First Amendment law and Lake City. Matt Daniels has been hired as a senior interactive litigation. designer. free-lance graphic designer in Salt Brent Miller has joined Registered Physical Therapists Inc. as a physical therapist in the company’s West Jordan office. He recently graduated from the divi- sion of physical therapy at the University of Utah. Josh Jenkins has been proLydia Carlisle has been assistant manager of the brokerage for ington Federal Savings’ Utah division. She joined First Federal ates the impression that every- thing that sparkles is post US. sparkling wine, Car- Internet Is Catalyst for investor in Denver. “The new paradigm 100 years of Methner neted that many ofthe soaring new never earned dime, and the! prospects of doing so are unknown. ff lftHlu Hyundai Motor Co., is BY PHATX. CHIEM KNIGHT RIDDER NEWSSERVICE Re IRVINE, Celif. — Kia Motors 3 z : fi i %_ Faced with stagnantsales, diminishing effect of advertising,retailers embracing newfangled approaches Ee ‘id ito aneFuel snl |
