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

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  • Garrido-Morgado, Álvaro
  • González-Benito, Óscar
  • Martos-Partal, Mercedes
  • Campo, Katia

Abstract

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.

Suggested Citation

  • Garrido-Morgado, Álvaro & González-Benito, Óscar & Martos-Partal, Mercedes & Campo, Katia, 2021. "Which Products are More Responsive to In-Store Displays: Utilitarian or Hedonic?," Journal of Retailing, Elsevier, vol. 97(3), pages 477-491.
  • Handle: RePEc:eee:jouret:v:97:y:2021:i:3:p:477-491
    DOI: 10.1016/j.jretai.2020.10.005
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    Cited by:

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    2. Grandi, Benedetta & Cardinali, Maria Grazia, 2022. "Colours and price offers: How different price communications can affect sales and customers’ perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    3. Garrido-Morgado, à lvaro & González-Benito, Óscar, 2024. "Applying the triple coherence line to in-store marketing plans to increase private label market share," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    4. Shahid Sameeni, Maleeha & Ahmad, Wasim & Filieri, Raffaele, 2022. "Brand betrayal, post-purchase regret, and consumer responses to hedonic versus utilitarian products: The moderating role of betrayal discovery mode," Journal of Business Research, Elsevier, vol. 141(C), pages 137-150.
    5. Rizzi, Francesco & Gigliotti, Marina & Runfola, Andrea & Ferrucci, Luca, 2022. "Don't miss the boat when consumers are in-store! Exploring the use of point-of-purchase displays to promote green and non-green products," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    6. Mareike Sachse & Sebastian Oetzel & Daniel Klapper, 2023. "I'll Try That, Too - A Field Experiment in Retailing on the Effect of Variety During Display Promotions," Rationality and Competition Discussion Paper Series 404, CRC TRR 190 Rationality and Competition.
    7. Wang, Qian & Chen, Hang, 2022. "Better or Worse? Effects of online promotion habits on customer value: An empirical study," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    8. Sirui Li & Ying Liu & Jing Su & Litao Duan & Hui Fu, 2024. "Men resist men: streamer-consumer gender match for advertising the functional benefits of heterogeneously priced utilitarian products," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    9. Raza, Ali & Wasim, Manahil & Ishaq, Muhammad Ishtiaq, 2024. "Virtual reality-based product displays to inspire consumers’ purchase intentions: An experimental study," Journal of Business Research, Elsevier, vol. 175(C).

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