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Milkin’ It

Milkin’ it

Ten Tactics Applied by Grocery Stores to Influence you to Spend More Money

By: Courtney Dempsey, Katana Lemelin, Alexis Taylor, and Michael Barbara, PhD

It’s Friday night at 6 pm. You’re hungry. You walk into the grocery store to get four items. Your goals are to stick to your shopping list and feed your family on a budget, even though inflation and prices continue to rise.

Yet, you walk out 30-minutes later with five bags of groceries and a 50-pound bag of dog food. If this sounds familiar, take heart. It’s a common scenario. You are not alone. Grocery stores are using persuasive tactics to influence you to spend more money.

Most consumers don’t fully understand the amount of deliberate, decisive marketing that goes into planning your local grocery store experience. Each additional minute you are in the store, translates into more money being spent. 

The average grocery shopping trip lasts 41-minutes. Every detail in the store – from the layout to the way products are arranged on the shelves, is scientifically designed to encourage you to spend more time and more money than you intended. By becoming aware of how the supermarket is marketing to you while you are pushing a shopping cart through their store, you can learn to dodge their strategies and walk out with your wallet still full and your budget intact.

TACTIC #1: PROMOTING “ONE STOP SHOPPING.

The larger the square footage of the store, the more time (and money) you will likely spend on each visit. Since the mid-1970’s, grocery stores have consistently become larger in physical space. Furthermore, if the store offers to fill your prescription, service your car, replace your mattress, and feed your family in one location, customers are likely to line up waiting for the doors to open. We like the opportunity to check off all the boxes on our “to-do” list in a couple of hours, without driving to multiple locations. 

Although new store footprints continue to increase an average of 2.1 % annually, there is a new, emerging prevalence of larger, well-known grocery chains placing “community” stores in larger cities. These locations are designed to evoke the idea of the old-fashioned neighborhood grocer. 

TACTIC #2: LARGE CARTS.

Costco and Sam’s Club have not cornered the market when it comes to large carts. Increasingly, stores like Walmart and Target are upsizing their carts, encouraging the customer to fill it to the brim. Although you probably don’t realize it, the size of the average grocery cart has tripled since the mid-70’s. So, even at Kroger or Aldi, you are pushing a much larger cart than the cart your mother or grandmother pushed around forty years ago at the very same store.

TACTIC #3: GIVING YOU SAMPLES.

Yes, it’s true. Stores know they could increase sales of specialty, deli, or convenience foods by simply cooking up a batch and serving it to you in little cups while you shop. If you take your kids shopping, the temptation to buy that product only increases. You are far more likely to purchase something you have had the opportunity to try – even if it was a couple of spoonfuls.

TACTIC #4: SELLING MORE LOCAL PRODUCTS.

Buying locally sourced products is important to nearly one quarter of shoppers. This has led to an increase in options which have large signs placed near them, informing customers that this item was grown or produced nearby. In response, you’ll find more options on the grocery store shelves, along with signage that lets you know that it is from a local vendor. Grocery chains of all sizes are appealing to the desire of the consumer to help support their “neighbor”, by placing products on the shelves that have been sourced from farms and businesses within a small radius from various store locations.

TACTIC #5: SELLING SHELF SPACE.

It’s a little-known nugget that manufacturers often pay for shelf space. This “slot fee” has resulted in branded products sitting on the much coveted aisle’s real estate. Products for children are likely to be placed at the child’s eye level; whereas, adult-targeted products are likely to be placed at the eye level of adults. 

TACTIC #6: POINT OF SALE PRODUCTS.

We’ve all seen the soda, magazines, gum, and candy which line the precious few square feet approaching the checkout. Let’s face it, this marketing makes sense. Consumers spend more time here than anywhere else in the store. These are known as impulse items and they sell well. The space nearest the checkout lane is the most expensive real estate in the store. It is sold per square inch, while shelf space in the remainder of the store is sold per square foot.

TACTIC #7: CROSS-SELLING.

This marketing technique is prevalent on end caps and special displays. End caps are the small, short shelves which are adjacent to the regular shelving units at a ninety degree angle. They are the items you see just before you enter each aisle of the grocery store. This prime area is perfect for stores to display sale items.

However, many customers mistakenly think that each item on that shelving unit is on sale. While they are all “for sale”, they are definitely not all “on sale”. Savvy marketers will place boxes of ice cream cones, bottles of chocolate syrup, and glass parfait glasses on the shelf next to the marshmallow topping. Yet, the only item which is on sale is the marshmallow ice cream topping. The remainder are being offered at full price. The goal of this display is to influence the consumer into purchasing everything they want for their perfect dessert. Moreover, shoppers will likely pay a premium price for each item, except one or two which are likely being offered at a discounted price.

TACTIC #8: LIMITED TIME OFFERS.

When you see messages similar to: “3-Day Sale”, “Memorial Day Weekend Sale”, or “Thursday, Friday, and Saturday Only”, these mean that you are looking at a limited time offer. These offers create a sense of scarcity. It’s telling your brain, “get it now while it’s available”. 

TACTIC #9: 10 FOR 10 DEALS.

The message that stores convey in signage is powerful. When the consumer views the message, “10 for $10”, they automatically assume they must buy increments of ten to get the special price. For the most part, this is not true. Although some stores insist on following the exact wording of the ad, most will allow you to buy less than ten and still receive the sale price on each unit. 

TACTIC #10: STORE LAYOUTS WHICH ENCOURAGE BROWSING.

Modern stores are designed with wider aisles, which means you walk through them at a slower pace, pausing to look at items which catch your attention. In the refrigerated and frozen section, the lights inside the display cases turn off when no one is near them. Yet, when you push your cart down that aisle, each unit lights up as you pass. Your peripheral vision sees the movement – and you are sure to look that way to see the contents of that case. While shopping, you’ll notice that you can’t get straight through aisles, because large displays block one side or the middle of the aisle. 

Additionally, some of the most frequently purchased products: milk, eggs, and meat, are positioned at the far end of the store. This is an opportunity for the consumer to view products that may not have been noticed. The path you’ll take to reach the far end of the store is not straightforward. Layouts are designed to take you in a zig-zag or circular motion to maximize the amount of square footage of products that you see on your way to the milk and eggs.

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      MASTER SERVICES AGREEMENT

      LAST UPDATED AUGUST 6, 2019

      This Master Services Agreement (“Agreement”) is entered into this day by and between Clicksuasion Labs. (“Clicksuasion”), 293 Olmsted Blvd, Second Floor, Pinehurst, NC 28374, USA, on behalf of itself and its owned and operated affiliates, and (“Client”), in the delivery of consulting and other professional services, collectively the “Parties”   This Agreement shall remain in full force and effect until terminated by either party with 30 days’ written notice.

      1. DEFINITIONS:
      • “Services” means any products and services that are requested by Client, whether electronic, written or verbal to Clicksuasion.
      • “Website” collectively refers to all Internet websites and domains owned by Clicksuasion.
      • “Exploratory”, “Discovery” means all communication, whether electronic, written or verbal with the intent to agree upon a SOW.
      • “Client” means any person or entity who requests Services or engages in Exploratory or Discovery communication with the intent to hire Clicksuasion Services.

       

      1. SCOPE: “Clicksuasion” shall provide consulting, research and other professional services to Client or to Client’s clients.

       

      1. WORK ASSIGNMENTS: The specific services to be provided by Clicksuasion shall be described in one or more Statements of Work (“SOW”) (or “Proposal”) issued pursuant to this Agreement and agreed upon in writing by the Parties prior to the termination of this Agreement, except where mentioned in paragraphs 5 and 16. The SOW shall be incorporated herein by reference and all terms and conditions of this Agreement shall apply to the SOW as if fully set forth therein. The SOW shall include a summary of the work, skills required, fees to be paid, and instructions on reimbursable expenses.  In the event of any conflict between the contents of any SOW and this Agreement, the SOW shall govern.

       

      1. USE OF CLICKSUASION WEBSITES: visit TERMS OF USE: clicksuasion.com/termsofuse

       

      1. INVOICING AND PAYMENT: We will invoice Client at the beginning of any project and when stated in the SOW. Unless otherwise stated, invoiced charges are due net-thirty (30) days from the invoice date. Client is responsible for providing complete and accurate billing and contact information to Clicksuasion and promptly notifying Clicksuasion of any changes to such information, including, without limitation, Client’s obligation to promptly report any Services-related performance issues or problems negatively impacting Client’s satisfaction with the Services so that Clicksuasion may attempt to remedy such. For clarity, if Client fails to notify Clicksuasion of a Services-related issue within five days from incurring it, such issue may not be relied upon as a reason to terminate this Agreement for Cause. In the event that payment is made via a third party agent, Client shall indemnify Clicksuasion and keep Clicksuasion indemnified against any loss, damage, costs and expenses Clicksuasion may suffer or incur as a result of any default by the third party agent in making payment in accordance with the terms of the SOW or as otherwise set forth in this Agreement. Client further authorize Clicksuasion to use a third party to process payments, and consent to the disclosure of your payment information to such third party. Clicksuasion shall invoice Client for fees and direct out-of-pocket expenses incurred as per the SOW. Payment in full is due upon completion of work or if other arrangements have been made between Clicksuasion and Client. Invoices unpaid after 15-days shall incur a late fee of 24 percent per annum until paid in full. Billing shall be on a time and materials basis.  Client’s non-payment of any Invoice shall entitle the Clicksuasion to stop performance under the terms of this Agreement, any Amendments thereto and/or any SOW without recourse by Client. Client is responsible for all fees and damages associated with the collection and legal solutions of late payments. All non-disclosure agreements between Client and Clicksuasion are void upon the first aged invoice 30-days past due. Additionally, the non-disclosure agreement must be re-signed by both parties to be effective beyond the first aged invoice 30-days past due. If any amount owed by Client under this or any other agreement for Clicksuasion services is thirty or more days overdue, Clicksuasion may, without limiting Clicksuasion’s other rights and remedies, accelerate Client’s unpaid fee obligations under such agreements so that all such obligations become immediately due and payable, and suspend Client Services until such amounts are paid in full. Clicksuasion will give Client at least seven days’ prior notice that the Client account is overdue before suspending services to Client.

       

      1. ENGAGEMENT NOTICE: A request for services, whether electronic or verbal, to members of Clicksuasion and the acceptance of the request of services from Clicksuasion will constitute a signed writing. All requested services, without a signed agreement, are billed monthly at $490.00 USD per hour. Client is subject to a $270.00 USD charge upon two consecutive missed meetings, whether electronic, telephonic or in-person, regardless of geographic location. Clients with ten (10) or less full-time W2-structured employees are billed $10,000.00 USD to be held in escrow for discussions related to research. All monies held in escrow will be billed at $490.00 USD during the exploratory process and all remaining funds, if applicable, will be returned to Client upon completion of the SOW or after an agreement is signed between both parties to cancel the SOW, whichever is first.

       

      1. VENDOR NOTICE: No employee of Clicksuasion has the authority to conclude any binding contract without an explicit ink-signed consent by the Chief Behavioral Officer. Therefore, any will to enter into an agreement must be confirmed by the Chief Behavioral Officer.

       

      1. INDEPENDENT CONTRACTOR: The Parties recognize and agree that Clicksuasion is an independent contractor. This Agreement is not to be construed to create an employment relationship between Client and Clicksuasion’s employees or subcontractors. This Agreement does not authorize either party to enter into any commitment or agreement binding on the other party. Clicksuasion shall have sole responsibility for the payment of salary (including withholding of income taxes and social security), worker’s compensation, disability benefits, and all other applicable taxes for its personnel.

       

      1. CONFIDENTIAL INFORMATION: Each Party agrees not to directly or indirectly disclose to third parties any of the other party’s confidential or proprietary information without the written consent of the disclosing party. Neither party shall, during the time the Clicksuasion is rendering services to the Client or any time thereafter, disclose to anyone other than authorized personnel any information of a confidential nature, including but not limited to, information relating to: any materials or intellectual property supplied by one Party to the other Party; either Party’s projects or programs; the technical, commercial or any other affairs or acts of the other Party or any confidential information which either Party has received from a third party and which has been identified as confidential. The restrictions contained in this Agreement are intended to cover confidential information which relates to the Parties’ respective businesses and which has not been otherwise made public but shall not apply to the dissemination which may be required by proper government or judicial inquiry. Likewise, confidential information shall not be deemed to be information which is in the public domain or which at some future point become available in the public domain. All non-disclosure agreements between Client and Clicksuasion are void upon the first aged invoice 30-days past due. Additionally, the non-disclosure agreement must be re-signed by both parties to be effective beyond the first aged invoice 30-days past due.

       

      1. WORK PRODUCT RIGHTS: Clicksuasion shall retain all rights, title, interest and ownership in the work product delivered pursuant to this Agreement, any Amendments thereto and the SOW as well as the Clicksuasion’s proprietary tools and methodologies which shall remain the sole property of Clicksuasion. For work product produced under the terms of this Agreement, upon payment in full of Clicksuasion’s Invoices, Client shall be granted a paid up, non-exclusive, irrevocable, world-wide license for all such work product to reproduce, distribute copies to the public and prepare derivative works by or on behalf of Client. Client agrees to permit Clicksuasion to publish Client data and case studies, without personally identifiable information, and without distribution of confidential information, for the purpose of advancing behavioral science via academic journals and Clicksuasion websites and distribution channels.

       

      1. TAXES: Client shall be responsible for all federal, state, and local sales, use, privilege, or excise taxes assessed on the charges to Client’s end users in relation to services provided hereunder (if Client is a tax-exempt organization and therefore there may be no taxes). Clicksuasion shall be responsible for all federal, state, and local sales, use, privilege, or excise taxes assessed on Clicksuasion’s income for these services.

       

      1. CLIENT LIST: Client agrees that Clicksuasion may include Client in its published client list and may display Client’s logo and trademark in its marketing materials and public relations; provided such use conforms to Client’s logo and trademark standards as such standards are provided to Clicksuasion.

       

      1. NON-SOLICITATION: During the term of the applicable SOW and for one year thereafter, neither Party shall solicit, entice, offer employment, retain or hire the other Party’s employees or contractors, without the written agreement of the other Party; nor shall Clicksuasion solicit or enter into a direct contract with Client’s client without the written agreement of Client.

       

      1. WARRANTIES: Clicksuasion warrants that the Services to be provided under this Agreement shall be performed in a professional manner conforming to generally accepted industry standards and practices. Client agrees that Clicksuasion sole and exclusive obligation with respect to the Services covered by this limited warranty shall be, at Clicksuasion sole discretion, to correct the nonconformity or to refund the Services Fees paid for the affected Services.

       

      1. TERM OF AGREEMENT: This Agreement commences on the date Client executes the SOW or requests service, whichever is first, or Client access any Clicksuasion Services and this Agreement continues until all services granted in accordance with this Agreement have expired or been terminated.

       

      1. TERMINATION: This Agreement may be terminated or amended at any time only upon written agreement by both parties with 30-days written notice; however, all payments made to Clicksuasion and the rights and obligations which by their nature are intended to survive such expiration or earlier termination shall survive, including without limitation warranty, limitation of liability, and confidentiality. Client may request that Clicksuasion reassign any of its personnel assigned to a SOW upon Clicksuasion’s receipt of Client’s written notice.

       

      1. LIABILITY FOR LOSS: Neither Party shall be responsible for any consequential, indirect, punitive, incidental, or special damages arising under any theory of recovery. The maximum liability of either Party is limited to fees paid by or payable to Clicksuasion for Clicksuasion’s services. Client acknowledges that Clicksuasion shall not be responsible for damages or delays of any kind or type caused by labor strikes, fires, wars, acts of God, terrorist activities, the inability to obtain supplies or materials or any other causes or forces beyond the control of the Clicksuasion. Client acknowledges that such events may delay the start, progress and/or the completion of the work.  Moreover, Client acknowledges and agrees the Clicksuasion shall have no further liability upon Client’s receipt of Services.  Client also acknowledges and agrees that any changes made to the website by Client’s personnel and/or by third parties which require the Company to do additional work after delivery of Services shall be billed by Clicksuasion to the Client on a time and materials basis.

       

      1. WAIVER: No delay or failure by either Party to exercise any right or remedy will operate as a waiver thereof.

       

      1. SEVERABILITY: If any part of this Agreement shall be held invalid or unlawful for any reason, the same shall be deemed severed from the remainder thereof and it shall in no way affect or impair the validity of the Agreement, any Amendments thereto and/or the SOW.

       

      1. ASSIGNMENT: This Agreement may not be assigned or transferred by either party without written agreement of both Parties, which assignment shall not be unreasonably withheld, qualified or delayed.

       

      1. GOVERNING LAW: This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina without reference to any principles of choice or conflicts of laws. Any action instituted by either party arising out of this Agreement, the SOW or the Proposal shall be litigated exclusively in Moore County, North Carolina.  The Parties expressly consent to the exclusive personal jurisdiction and venue of Moore County, North Carolina.

       

      1. COSTS OF ENFORCEMENT: If a suit, action, arbitration, or other proceeding of any nature whatsoever is instituted in connection with any controversy arising out of this Agreement, or to interpret or enforce any rights under this Agreement or the North Carolina Limited Liability Company Act, Clicksuasion may recover attorney’s fees and costs.

       

      1. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement and supersedes all prior understandings between the Parties. Any change to this Agreement shall be in the form of a written Amendment signed by both Parties.  In the event of a conflict between this Agreement and the signed Amendment, the Amendment shall control.

       

      1. JOINT DRAFTING OF AGREEMENT: The Parties expressly agree that this Agreement was jointly drafted and that both Parties have had the opportunity to negotiate terms and to review the terms prior to the execution of this Agreement. This Agreement shall be construed neither against nor in favor of either Party but shall be construed in a neutral manner.

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