Say you've written a list and gone to the
store..
But you quickly start buying things that you didn't plan on.
After all, fresh produce would be nice.
And these look good.
Half off?
Why not!
Wait.
Why is it so hard to stick to a shopping list?
Researchers estimate that half of consumer
spending is unplanned.
Sometimes it's stuff you just forgot to put
on your list.
But there's another kind of purchase that
consumer psychologists measure
That would be your impulse purchase
where you see something.
 
You think it's kind of a cool item.
I think I'll buy that.
The architecture of a store can impact consumer
satisfaction, which in turn might spur
impulse buys.
In the 20th century, the architect Victor
Gruen used light and space to dramatically
stage goods in storefront windows.
His designs tried to capture the attention
of passersby… and convert them into customers.
Today, people call this technique 'The Gruen
Effect.'
It happens when a store environment takes
you from shopping for a specific item
to shopping for shopping's sake.
 
It's about the mindset and the environment
that they try to create.
Does this sound familiar?
Think about your last trip to IKEA.
They have the restaurant with the Swedish meatballs and all of this stuff. And that's not a coincidence.
You're trying to build excitement
because when
people are excited and aroused they're more likely to buy.
Almost 20 percent of our buying decisions
are based on logic and needs.
80 percent of our buying decisions are actually
based on emotions.
And we try to make that connection or bridge
that connection
Yeah of course we are retailers so we try
to make sure that you know, grab a thing
or two.
My name is Richard La Graauw and I'm creative director
for Ikea here in the US.
Which is an important job.
He's in charge of how the products are presented in the store.
That includes layout.
Retailers pay close attention to how their
floor plan can change in-store behavior.
Grid layouts emphasize speed and convenience.
Where freeform layouts allow exploration,
which can make customers visit more parts
of the shop.
And racetrack designs create a loop that exposes customers to a certain path of product.
IKEA uses a fixed path through a maze of product displays.
That can extend the distance travelled in store.
So the more you travel, the more items by definition
as a shopper you'll be exposed to.
At the entrance, most customers will be drawn
to a bright yellow bin of bags, placed next
to the escalator.
Spots of light guide your eye to the entrance
of the showroom
And before you know it, you're taking the
scenic route.
So with light, you can actually steer consumers towards different
areas and
toward different product selections.
On average, customers only visit about a third of any retailer's floor area.
IKEA's layout forces customers to cover more ground.
IKEA was always designed as a place where
you can see, touch, and try, no?
So they can spend hours if they want to.
But there's also consumers that know exactly
what they want and just want to have it quick.
So it's tailored to both.
One researcher in London surveyed an Ikea
to hand-draw these pedestrians pathways.
This heat map of the showroom was generated
using her data.
It looks like the path guides are working.
Where Victor Gruen simply used a hunch to invent window shopping,
virtually any store from IKEA to your local
grocery has a trove of big data at their fingertips.
We used technology to measure actually the
flow of consumers and where they're interested
and in which areas they intend to go.
And that works all based on Beacon technologies.
Which means retailers like Ikea will only
get better at nudging you to spend time in
more parts of the store.
So, compulsive shoppers, the next time
you go to the store… consider taking the
shortcut.
Or, at least, don't forget what you came here for.
Because it probably wasn't 
plants and a plate of meatballs.
You do you, though.
