Definition
Point of purchase (POP) refers to the physical or digital location where a customer makes the decision to buy a product and where the transaction takes place. It encompasses both the environment in which purchasing occurs and the materials used to influence that decision at the critical moment of buying intent.
Point of Purchase vs Point of Sale
In retail, the point of purchase is typically the area around the checkout counter, a product display, or any location in the store where a customer picks up an item and decides to buy it. POP is sometimes used interchangeably with point of sale, but the two terms have a subtle distinction: point of sale typically refers to the transaction itself (the payment), while point of purchase includes the broader decision-making context.
Point of Purchase Marketing Materials
Point of purchase materials, often abbreviated as POP displays or POP marketing, are the physical or digital assets placed at or near the buying location to encourage purchase. These include shelf talkers, floor stands, dump bins, counter displays, banner stands, and digital screens showing product promotions.
The Commercial Rationale for POP Marketing
Research consistently shows that a significant proportion of purchase decisions are made in-store rather than before entering. A customer who walks in planning to buy bread may add a product they had no prior intention to buy if it is presented attractively at the right moment. This is the commercial rationale behind investment in POP marketing.
Digital and Hospitality POP
In eCommerce, the equivalent of the point of purchase is the product page and the checkout flow. Product images, reviews, descriptions, and urgency signals serve the same function as physical POP materials in driving the final purchase decision.
For hospitality, the point of purchase can be the counter, the table, or even the menu itself. Digital menu boards, table tent cards, and staff suggestions at the ordering moment are all POP tools in a food service context.