New in the world of market research and evaluation: testing the efficiency of shopping patterns in grocery stores. Still unexplored: the intended and unintended impacts of in-store media and marketing on the same shopping patterns.
Relatively novel research by a group of Wharton marketing academics attempts to gauge the efficiency of routes taken by grocery store patrons. The economists’ approach begins by applying the travelling salesman problem: what is the shortest route necessary to reach a list of destinations? This problem is evaluated using a multi-node database collected with the help of RFID-equipped shopping carts and register receipt analysis.
“We see that the produce and tobacco categories are over-represented in the [efficient] group. On the other hand, canned, ready-to-eat, and frozen food, among other products, tend to be over-represented in the [inefficient] group.This indicates that on average, shoppers who purchase prepared food products are generally less forward-looking than other shoppers when they construct their shopping paths.
At the surface, inferences like these may seem only tangentially relevant to managerial interest; however, if retailers can influence [shopper route efficiency] through advertising, in-store signage, etc., and hence affect the profits associated with various look-ahead patterns, this can become a useful managerial tool.”
Despite all their economic models, these researchers have yet to win any insight into how I navigate a grocery store. Driven by a basic list of essentials, I am also influenced by end cap displays, on-shelf couponing, private label discounting, a sketchy memory for shopping lists and a dangerous sense of adventure when it comes to sauces and bastes. Or maybe they do know me:
“Some shoppers may be hedonic browsers … who like to wander around the grocery store and derive utility in ‘window shopping,’” …
“Other shoppers may not have enough knowledge of the store to remember where the products they wish to purchase are located.”
The researchers acknowledge that more nuanced data could significantly affect their findings:
“…An important dimension that we did not address in this paper is the
amount of time that shoppers spend deliberating about their purchases, or aimlessly loitering, within a given zone. We can not address this issue with our cart-based RFID data because we do not observe the shopper’s behavior directly. But as data collection technology further matures (e.g., using video recordings instead of – or in addition to – RFID tracking), this time dimension can fruitfully be explored.”
Sounds like they need to speak to some anthropologists … or Envirosell.
“The Travelling Salesman Goes Shopping: The Systematic Inefficiences of Grocery Paths,” excerpted in Knowlege@Wharton.
For you operations research junkies: the Travelling Salesman Problem Generator.
A heavily edited sworn statement on the marketing of salty snacks at a grocery store.
….
in the supermarket vegetable section]
Eric ‘Otter’ Stratton: Mine’s bigger.
Marion Wormer: looks questioningly at him
Eric ‘Otter’ Stratton: My cucumber. It’s bigger.
Eric ‘Otter’ Stratton: I think vegetables can be very sensuous, don’t you?
Marion Wormer: No, vegetables are sensual. People are sensuous.
Eric ‘Otter’ Stratton: Right. Sensual. That’s what I meant. My name’s Eric Stratton. People call me Otter.
Marion Wormer: My name’s Marion. People call me Mrs. Wormer.
Eric ‘Otter’ Stratton: Oh, we have a Dean Wormer at Faber.
Marion Wormer: How interesting. I have a husband named Dean Wormer at Faber. Still want to show me your cucumber?
Technorati Tags: operations research, grocery, trip chaining