MIT Sloan Management Review Article on Business Scents: The Rise of Digital Olfaction

The aroma of freshly baked bread wafting through supermarket aisles. The percolating pot of coffee in a house for sale. The leathery richness of a new car’s interior. We may not always realize it, but our sense of smell is central to many decisions we make as consumers, be it purchasing a new car or deciding to grab a doughnut and coffee on the run. According to the Scent Marketing Institute, leather and cedar aromas will induce you to buy furniture, and floral and citrus notes will make you linger longer in the bookshop. One study showed that adding ambient scents to a Nike showroom increased consumers’ pleasure and stimulation, willingness to spend more money, and likelihood of returning to the store, compared with a nonscented environment.

Put simply, smell sells — a fact that has long been understood by retailers, manufacturers, and advertisers. But despite the economic and commercial importance of olfaction, businesses have generally lacked robust tools to detect, measure, and manage smells in a scientific way.

About the Author

Mark Purdy (@mjpurdyecon) is managing director of Purdy & Associates, an independent economics and technology research company. Max Klymenko (@maxoklymenko) is the creative director of Klym&Co., a social impact communications agency. Mia Purdy (@miaapurdy) is a law and technology researcher.

Learn more about MIT SMR.