The Science of Shopping: How Psychology and Innovation Create a Winning Retail Strategy

Business consultant Hardcastle examines how retailers can boost sales by better understanding consumer psychology in this perceptive guide. Her “buyerarchy of needs” explores the complex motivations behind purchasing behaviors, suggesting that installment plans can address the foundational consideration of price while effective branding can generate cultural cache that appeals to the higher-level desire for social status. New technologies present new sales opportunities, Hardcastle contends, touting the promise of partnerships with social media influencers by citing a study that found “92 per cent of consumers trust recommendations from individuals... over brand-driven advertisements.” Hardcastle also provides astute psychological insight into creative sales strategies. For instance, she explains that “price anchoring” works by placing expensive items next to more affordable ones, making the cheaper option seem like a deal even if it’s still a significant expenditure. Hardcastle doesn’t provide many studies to back up the efficacy of such tactics, but the underlying principles are generally sound and real-world examples bolster some of her arguments. For instance, she supports her contention that “perpetual discounting” can backfire by describing how Sears’s constant markdowns created the damaging impression of cheap and unwanted goods. This successfully demystifies the consumer mindset. (June)