The authors ran experiments both in the field and in the lab that kept the number of units for sale constant and simply manipulated the amount of space surrounding the items. For example, in one study they partnered with a retailer selling jewelry. The authors tracked sales both when the retailer used its typical display and when the retailer displayed the same number of items over twice as much space. The increase in space resulted in doubling the number of shoppers who purchased, resulting in a 50 percent increase in revenue per shopper.
Subsequent studies in the paper found that the boost in purchase and revenue was caused by the increased space between products, making the store seem more prestigious and also, independently, making the products seem better looking. Additional studies in the paper suggest that the effect also likely occurs for online retailing, in terms of the spacing of products on a screen, whether computer, mobile or otherwise.
"In the short term, stores can very easily manipulate product displays in time for the upcoming holiday shopping season. As such this study serves as a cautionary tale, 'buyer beware," said Claudia Townsend, assistant professor of marketing at the University of Miami School of Business Administration. "Importantly, this research helps shoppers by showing them how something external to the product may be biasing the way they evaluate items," added Townsend, who conducted the study with a colleague from the University of Georgia. "From the perspective of the seller, thinking more long-term, this research offers justification for seeking out larger retail space, even if it means paying a higher rent."
Note to editors: The University of Miami study is available upon request.
About the University of Miami School of Business Administration
The University of Miami School of Business Administration is a leader in preparing individuals and organizations to excel in the complex, dynamic, and interconnected world of global business. One of 12 schools and colleges at the University of Miami, the School offers undergraduate, master's, doctoral, and executive education programs. With its location in a major center for international business, the School is acclaimed for its global perspective, student and faculty diversity, and engagement with the business community. More information about the University of Miami School of Business Administration can be found at www.bus.miami.edu.
Logo - http://photos.prnewswire.com/prnh/20110906/DC62866LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/shoppers-more-likely-to-buy-products-that-have-more-space-around-them-says-university-of-miami-study-300365446.html
SOURCE University of Miami School of Business Administration