Analysis of Product Placement's Influence on Consumer Behavior, Sales

This report investigates the impact of product placement on consumer behavior and product sales within supermarkets. It identifies the challenges supermarkets face in strategically placing products to maximize customer attention and sales. The research explores how product placement influences purchasing habits, highlighting the significance of factors like product positioning, store layout, and consumer comfort. It examines the relationship between product placement strategies, consumer behavior, and sales performance, and proposes a conceptual model to illustrate these relationships. The study employs both qualitative and quantitative methods, utilizing secondary sources like books, articles, and websites to gather comprehensive data. Ultimately, the report aims to provide insights for supermarkets to optimize their product placement strategies, enhance customer engagement, and boost sales.

I. BACKGROUND INFORMATION
Details of student:
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- ANR:
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Business Research
Methods
(Product placement and its impact over
consumer behaviour and product sales)

Table of Contents
I. BACKGROUND INFORMATION.............................................................................................1
ABSTRACT.....................................................................................................................................4
II. RESEARCH PROPOSAL..........................................................................................................5
1. Research problem and relevance of the research....................................................................5
2. Theoretical background...........................................................................................................6
3. Methodological framework...................................................................................................11
3.1 Research design...................................................................................................................11
3.2 Sample strategy...................................................................................................................11
3.3 Data collection....................................................................................................................11
3.4 Data analysis.......................................................................................................................12
REFERENCES..............................................................................................................................13

ABSTRACT
In the current investigation, researcher has carried out data about the topic of product
placement and its effect on sales and the behaviour of consumers. This report has covered that
supermarkets and grocery stores struggle to place their products as per their customer's needs and
requirements. It has also given basic information about the product placement, sales as well as
customer behaviour. It has also included model through which supermarkets could set their
products so that they can catch attention of the customers. The major goal of the current report is
to carry out maximum piece of information about the concept of placing products at stores. In
this information is assembled with the help of qualitative and quantitative methods. The major
secondary sources are: books, articles, journals, newspapers and websites.

II. RESEARCH PROPOSAL
1. Research problem and relevance of the research
Research problem
The current investigation is based upon the topic known as product placement and its
impact over sales and customer behaviour of the supermarkets. The main problem identified in
the current investigation is that many supermarkets face issue and struggle in placing their
products within the stores and this directly negatively impacts their sales and consumer
behaviour. Without placing products at right place supermarkets have to face grabbing attention
of the customers towards their different products, goods and items. In simpler words, without
having strategic product placement, supermarkets are not able to trick their customers and they
leave supermarket by buying only their needed and required items (Gómez-Donoso and et, al.,
2021). This could affect sales negatively in the long run and customers lose interest towards
products of the supermarkets due to their inefficiency of attracting customers and highlighting
products. Supermarkets face issue in deciding which product needs to be at the front and which
requires to be at the back so that customers could easily put their hands on their required product
and good. The other major problem related to product placement faced by supermarket is not
leaving enough room for consumers. In simpler language, the more cramped supermarkets the
more chances of losing existing as well as potential customers. Hence, these problems and issues
are covered in the current investigation and the best ways through which supermarkets could
easily place their products.
Relevance of the research
The present investigation holds great significance because it is based upon the significant
element of the supermarket i.e. product placement. It has great scientific relevance of this
investigation because it provides great piece of information about the product placement and its
impact over customer behaviour and sales of the product (Thorndike, 2020). By focusing on
product placement, this investigation meets the requirements for many supermarkets to give
significance to placement of the products. The other significance and contribution of the present
investigation is to provide better understanding of the relationship among product placement,
consumer behaviour and product sales. In the present section of the literature review, one could
easily search about the competing insights about the relationship among customer behaviour,

sales and product placement. This conducted investigation also holds great data about the
supermarkets, professionals as well as students who want to conduct research on the same topic
i.e. product placement.
Research Question
Why does different product placement in a supermarket affect product sales and customer
behaviour?
Hypothesis
H1: There is a significant difference between the product placement and product sales and
customer behaviour
H2: Product placement has positive affect on customer behaviour and sales of the product
2. Theoretical background
It is the most important section of the current investigation because it includes definitions
of the independent and dependent variables relevant to the topic is discussed. Next to this, the
theoretical mechanisms would be defined, which leads to the hypotheses of this investigation.
Finally, the conceptual model involving the significant and their underlying significant piece of
information is shown.
Defining the main concepts
Independent Variable: Product placement
Product placement is referred as the phrase that has become increasingly significant way
for brands for reaching target people in simpler and subtle ways. Many companies and
organisations are considering product placement for increasing brand awareness, sales and draw
in consumers all without traditional methods of advertisements. It needs to be understood that
product placement does not only apply to simple placement in media but could also applicable to
actual shop of the retailers. Product placement holds great importance in supermarkets or grocery
stores because it is the place where people easily get influenced by the placements of the
product. This could be simply defined as with an example i.e. when customers go to supermarket
they go with certain lists and with particular budget but with the assistance of product placement,
supermarket make customers to buy additional products and spend more by grabbing their
attention. Like media, big supermarkets and grocery stores pay great amount for prime space on
the retail shelves and floors. With the assistance of product placement, supermarkets create large
endcap displays so that it could catch attention of the customers (Martinez and et. al., 2018).

Dependent Variable: Product sales and customer behaviour
Product sales is referred as one of the significant elements for which almost every
business operates. In simpler language sales of the product is referred as an act of selling a good
or service in return of compensation, money or any other service. The number of good sold in a
provided time period assists in identifying the sales of products. It is one of the critical
parameters to understand the business of an organisation.
The other dependent variable is consumer behaviour which clearly studies groups,
individuals, companies and all the tasks related with the use, purchase and disposal of services
and goods (Bialkova Grunert and van Trijp, 2020). Consumer behaviour includes the way
emotions, preferences and attitudes of the customers affect their buying and purchasing
behaviour. In simpler words, it is the study of customers and the procedures they use to select,
consume and disposal of the services and products.
Impact of product placement over consumer behaviour and product sales
When supermarkets place products within their store create huge influence on the
purchasing habits of the consumers. There is a reason why every grocery store and supermarket
displays and highlights their fresh vegetables and fruits at the front of their store and a variety of
snacks at the checkout points. Supermarkets always put products of big brands are put and placed
in the centre of shelves, while budget brands are commonly placed on the bottom shelves. In-
store product placement is defined as the art to identify where company's products appear within
a retailer by design, negotiation and planning. The layout of the supermarket is key for deciding
how to position items for maximum effect. If the supermarket operates at larger scale then they
conduct detailed investigation and this is one of the worth investments in real time situation shelf
analytics and another technologies for drilling down into the distinguish in sales between items
when placed in specific areas (Vogel and et, al., 2021).
Supermarkets have great focus over product placement because they know through this
they can easily increase the sales of the products. Essential and popular food products, such as
bread and milk, are placed at the back walls of the stores so that consumers have to walk larger
distance and passing by this distance customers look for other products and get attracted towards
them. This makes them to pick other items by walking through the store and this ultimately
increases the order value of the customers. Supermarkets and grocery stores also places high
value products at the enterance because they believe that placing limited edition, luxury items

and high value at the front of the stores so that customers could make additional impulse buy and
purchases. When customers make additional impulse purchases this facilitates in increasing the
sales of supermarkets as well as engaging existing customers as well as potential consumers.
With the assistance of appropriate product placements, supermarkets places important
and significant items at the middle shelves at below or just at eye level. When products are put at
eye level of the customers there is more chance of boosting the number of sales. The only
exception for this particular rule is for items aimed at toddlers or children because their eye level
is lower as compared to adults and older people. Hence, children are more likely to notice goods
on bottom shelves. Therefore, the products need to be placed as per the convenience of their
customers. Because this is directly connected to increasing the number of sales of supermarkets
(Ford and et. al., 2020).
Customer behaviour towards supermarkets changes with the assistance of product
placement because it has great significance to attract attention of the consumers and makes
positive approach towards the supermarket. Supermarkets use display stands or aisle end caps for
placing complementary items together based as per the occasion such as flowers and cards for
Mother's day and charcoal especially for BBQ season (Ragab and Arisha, 2018). This is very
easy opportunity for increasing impulses buy and purchases. When complementary items are
providing with appropriate displays which creates positive mindset among customers and also
changes behaviour of the customers towards and become permanent customer of that particular
customer. The major reason of product placement for supermarket is making customers to
browse for longer and increase overall sales of the supermarket. The perception and behaviour
customer changes towards the supermarket when they get enough room in the place to feel
comfortable. Behaviour of customers get positive when supermarkets provides wide aisles so
that customers can conveniently shop.
Placement of products generally adopted by supermarkets

Supermarkets always put floral sections right in front of the entrance so that customers
can feel fresh and feel pleasant so that they could have positive behaviour towards the brand.
Customers could then reach to the fresh produce aisle where healthy vegetables and fruits are
stocked on. The back corner of the supermarket is reserved for bakery products and then canned
products are placed in the center aisles as they do not need refrigeration. The heights of shelves
is strategically laid out for increasing profitability and sales by improving the number of facings.
Bulk products are placed at normal sight and shelves are made according to the preferences of
the customers. The eye level shelves are generally reserved for most popular products in each
section. At the end of the aisles, supermarkets generally use this for rotating products. These
could be clearance goods, seasonal items, clearance products or other promotions. Impulse
products and items are also put throughout the stores because this encourages customers to buy

something that they were not planning at the time of visiting supermarket (Stuber and et. al.,
2021).
Conceptual model
H1: There is a significant difference between the product placement and product sales and
customer behaviour
H2: Product placement has positive affect on customer behaviour and sales of the product
Figure 1: Conceptual model of Product placement has positive affect on customer behaviour and
sales of the product

3. Methodological framework
Under this section various aspects related to research methodologies used by the
researcher are elaborated. Under the first part of this section research design, data collection and
sampling strategy is elaborated. With the help of research methodologies this is easier for the
researcher to solve research problem so that appropriate framework within research can be
provided (Ørngreen and Levinsen, 2017). Under the second section, measurement of such
variables which are used within the research will be analysed. Some of the research
methodologies are elaborated as under:
3.1 Research design
Research design is defined as such strategy in which various components are added so
that research can be executed in logical and coherent manner. This helps the researcher in
ensuring the manner in which research problem can be executed in effective manner. There are
various types of research design such as experiment, survey, historical research, case study and
existing literature review. Under the current research existing literature review and survey will be
used so that to develop the research in appropriate manner along with gaining in-depth
information can be acquired. This is selected for the major purpose that researcher is willing to
execute the current research in qualitative and quantitative manner (Snyder, 2019). With the
assistance of survey, quantitative kind of information could be easily assembled. Survey is strong
on ecological validity and external validity which directly fulfil the purpose of whole
investigation. The survey is done at a particular period of time and it is very common that survey
outcome can be different at another period of time. Therefore, the main advantage of the present
investigation is takes out quantitative information which is also available in raw form.
3.2 Sample strategy
Sample strategy is defined as the statistical process in which number of observations are
taken out from the overall population so that to perform the process of research in appropriate
manner. There are various types of sampling that can be used by researcher such as random
sampling, stratified sampling, theoretical sampling, purposive sampling and many more. Under
the current research random sampling will be used as this sampling method gives equal
opportunity to each and every respondent for getting selected. Mainly sampling has two forms
such as probability and non-probability sampling. Probability sampling is selected by

investigator because it is required for conducting the survey strategy systematically.
Homogeneous samples are chosen so that every sample could easily get equal chance for
participation. This way research can be executed in fair manner which leads to develop
appropriate results as well. Under this research 30 managers are selected from the supermarket
operating in the United Kingdom (Pandey and Pandey, 2021). These managers are selected so
that they have great knowledge about the concept of product placement for attracting large
number of customers as well as increasing the revenue level. With this quantitative information
is gathered which helps in making whole investigation reliable and relevant. Frequency
distribution analysis is selected so that statistical information could be evaluated and analysed.
3.3 Data collection
Data collection is defined as the method of gathering and measuring information in such
a way that research outcomes can be analysed. This is regarded as one of the method which is
holding higher degree of essentialism within research and helps in getting accurate information
to the research. This is the systematic method in which information can be measures in
appropriate manner so that outcomes can be exerted. There are two methods of data collection
such as primary and secondary. In the current research within primary data collection method
questionnaire will be used and in terms of secondary data collection method using books and
journals information will be gathered (Zangirolami-Raimundo, Echeimberg and Leone, 2018).
With the help questionnaire, investigator asks questions related to the procedure they use for
placing the products so that they can grab attention of the customers. The questionnaire is given
to managers of supermarket so that to gather ample information related with research topic.
Using email the questionnaire were sent to the respondents so that according to their consent
they can fill it which would be helpful in executing the research in appropriate manner along
with attaining research objectives.
Independent variable
With the help of questionnaire, managers were asked regarding the aspect of product
placement and the manner in which they are emphasising on this concept within business
function. Besides this managers were also asked regarding the methods used by them for
placement of their products into the stores.
Dependent variable