Posted: Tuesday, December 13, 2011 10:18 am

In the run up to Christmas, many shoppers will be searching for last minute gifts, the time pressure causing such stress that inappropriate impulse buying prevails – often at great expense to both the consumer, and the retailer.

Nancy Puccinelli, Associate Fellow at Saïd Business School, University of Oxford has conducted research into consumer behaviour and has found that people making buying decisions with little time available, use mental shortcuts which are not necessarily helpful. 

They may focus on superficial aspects of a product such as the design of the packaging to make the decision more quickly, rather than thinking about the product and its appropriateness for the recipient. Other consumers may be unduly swayed by the sales assistant’s advice. Whilst using such shortcuts certainly speeds up the decision-making, it may lead customers to make the wrong choice.

For retailers such poor choices can destroy Christmas profits, as an army of retail staff is needed to process returns of this now old and unwanted inventory. ‘It is in retailers’ interest to help consumers make the right purchases’ says Nancy Puccinelli. ‘There are a number of things that retailers can do': 

• Reduce variety. Shoppers are easily overwhelmed by too much variety, especially when they don’t feel they have adequate time to assess all the options. Research shows that shoppers will abandon the decision altogether rather than have to consider all the alternatives.

• Recognise that many shoppers are willing to pay a premium for convenience and efficiency in the final days before Christmas. Be sure shelves are well stocked, extra staff are available to help direct customers, and consider organising products by type of recipient to help consumers choose easily.

• Help purchasers identify their criteria to speed up their decisions and limit their choices. Marks and Spencer Christmas Helper, with the Size Detective and Gift Genius, is a good example.  By identifying the relationship to the gift giver, as well as the recipient’s age and personality M&S is able to recommend more customised gifts.

• Categorise products for consumers.  Instead of having gifts for women spread throughout the store, put them all in one place.

• Bundle products together to make ready-made gifts. This can go beyond the obvious, like champagne and chocolate, to offer something more innovative.

• Rethink whether promotions make sense in the final days before Christmas when consumers haven’t got the time or mental capacity to assess them.  They can be distracting and contribute to consumer stress. 

• Encourage consumers to think about how good it would be to find the perfect gift (and how miserable it will be if they don’t). Retailers might have displays showing a grateful recipient accompanied by “Be the one who finds the perfect gift”.