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Cognitive biases in merchandising activation and effect on supermarket sales

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  • Avanzi, Dante
  • Guissoni, Leandro Angotti
  • Rodrigues, Jonny Mateus
  • D'Andrea, Rafael

Abstract

Competition among different brands in supermarkets motivates consumer goods companies to develop and implement and activate merchandising materials at the point of sales (POS). These merchandising materials attempt to influence shoppers and promote sales. On the other hand, behavioral economics studies the decision-making of individuals based on their preferences and beliefs, influenced by cognitivebias. This study attempts to understand the effect of loss aversion and mental accounting in POS materials on supermarket sales. We conduct two experiments with a consumer brand in a supermarket chain. The results reveal a positive and significant effect on sales only for the cognitive bias of loss aversion, applied to the POS materials.

Suggested Citation

  • Avanzi, Dante & Guissoni, Leandro Angotti & Rodrigues, Jonny Mateus & D'Andrea, Rafael, 2020. "Cognitive biases in merchandising activation and effect on supermarket sales," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 60(4), April.
    • Handle: RePEc:fgv:eaerae:v:60:y:2020:i:4:a:81314
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