Color and Retailing

Color Priming What do you think of the influence of color on consumer perception of freshness? Priming, particularly in a retail setting is pivotal to generating sales and revenue growth. Retail is a peculiar industry as the barriers to entry are relatively low. Theoretically, anyone can start a retail operation. The advent and subsequent utilization of the internet creates further competitive pressures within the industry. Consumers now have more choice in regards to their purchasing decisions. Retails therefore must respond with tactics designed to encourage consumption and brand loyalty.

Priming is one such technique that has been used by retailers for years. Priming, particularly through use of human senses provides an atmosphere designed to encourage enjoyable feelings, which ultimately translate into higher sales. Consumers react fundamentally to colors because color helps humans simplify their surroundings. It is estimated that roughly 80% of information reaches our brains via our eyes. It means that we are instinctively more comfortable when colors remind us of something familiar.

For example, a soft shade of blue triggers associations with the sky and a psychological sense of calm. Color in particular is a profound method by which retailers can help influence purchasing decisions. For example, sales are often marked in red which creates a sense of urgency in regards to consumers. Red is synonymous with stopping at an intersection or danger, which evokes a sense of urgency and suspense.

Sales signs marked in red for instance help convey the lack of a particular product and the unlikelihood of it being in the store after a certain period of time has elapsed. Consumers, fearing that the opportunity to purchase a particular product at a reduced price may be lost if they wait, rush to obtain the product. In addition, red often is used to signal traffic to stop. This same concept is used to help stop shoppers in hopes of generating interest in a particular product category.

Red sale signs are generally placed deep within the store requiring consumers to stop to view the sign, and then if interested, walk through the store to look at the merchandise. As such, the consumer is exposed to adjacent departments and product offerings while also being attracted to the heavily discounted product offering. The benefit of the red colored sale signs is two-fold. First, the retailer is relieved of costly inventory, which ultimately, will be marked down still further.

In addition the retailer now have room for higher margin products that consumer demand. By using color within a sale sign, the retailer helped generate sales through the use of scarcity and a sense of urgency. Color association also extends into food retailing. For example, most fast-food restaurants are decorated in vivid reds and oranges. These are colors that encourage us to eat quickly and leave. Luxury brands however, favor softer colors that appear more sophisticated to the consumer, thus justifying the higher price point.

In high end restaurants, colors are used to encourage patrons to linger and purchase more products. In regards to the perception of freshness, color can also influence consumer behavior. This is particularly true for certain product categories within a store. For examples, consumers typically demand freshness with time sensitive food products. Milk, bread, vegetables, fruits, and certain meats all have a finite shelf life. Many of the products in these categories must be consumed within a specified period of time, or consumers risk losing the opportunity to eat.