The Power of Point-of-Purchase Signage

Stephen E. Bickel, Ari Reeves, and Bill McNary, D&R International, Ltd.
Richard P. Karney, U.S. Department of Energy

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Abstract

Our study set out to answer a simple but important question: Are properly designed pointof- purchase (POP) signs alone enough to increase sales of compact fluorescent lamps (CFLs)? Program sponsors typically include POP as part of multi-pronged and often expensive promotional efforts, which may include incentives, buy-downs, print ads, and other forms of advertising. Therefore, it has been difficult to evaluate the impact of each element, especially since most retailers do not release sales data. Research in social psychology suggests that POP alone should be sufficient to promote increased sales.

In collaboration with national retailers, utilities, and other ENERGY STAR program sponsors, the research team tested three different signs designed using social psychological principles for three weeks in 109 stores across the country. An additional 36 stores served as a control group. Actual sales of CFLs were compared with same-period sales from the previous year. When background differences in store environment were controlled for, one sign was associated with a statistically significant 15-percentage-point increase in sales compared to stores with no sign.

This paper describes in detail the study's methodology, findings, and conclusions. Implications for energy efficiency program design and directions for further research are also discussed.