What is the Difference Between Point of Sale and Point of Purchase?

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The main difference between Point of Sale (POS) and Point of Purchase (POP) lies in their definition and purpose.

  • Point of Sale (POS): This refers to the actual transaction that occurs when a customer buys a product, typically at the checkout counter or register where the customer exchanges money for the product. POS systems are used to process transactions and manage the store's inventory.
  • Point of Purchase (POP): This refers to anything that customers interact with in-store when they are deciding whether or not to purchase a product. POP displays can be found throughout the store and are designed to attract customers and encourage them to make impulsive purchases.

In summary:

  • POS is the specific point where customers exchange money for products.
  • POP is a broader concept that encompasses all in-store interactions between a customer and a product, including displays and merchandising strategies.

Comparative Table: Point of Sale vs Point of Purchase

The main difference between Point of Sale (POS) and Point of Purchase (POP) lies in their definition and purpose within the retail environment. Here is a table summarizing the differences:

Feature Point of Sale (POS) Point of Purchase (POP)
Definition POS refers to the actual location where the transaction takes place, such as a cash register in a physical store or the checkout button in an online store POP refers to the physical location where merchants sell their products, whether online or in-store
Purpose POS is about completing the transaction and processing the payment POP aims to influence the purchasing decision and attract customers to the products
Location POS is typically found at the checkout area or close to the cash register POP can be anywhere in the store, often placed in high-traffic areas to catch customers' attention
Displays POS displays are usually smaller and contain items that are easy to put into the customer's basket POP displays are designed to showcase products and create an organized product presentation
Examples In a physical store, the checkout counter is a POS. In an online store, the checkout button is a POS. In-store displays, such as showcases and display panels, are considered POP.

In summary, POS is where the actual transaction takes place, while POP is where the purchasing decision is influenced.