Friday 31 October 2014

Friday Research: Breath Fire into Your Retail Pricing Strategies

When Will You Use This?  


Creating retail pricing and discount strategies.

What’s The Red-Letter Bite Today? 


We all love good deals and low price. So can one retail pricing strategy be better than the other?

Current research* looked at the impact different pricing strategies have on the stores people shop at when they do not know the product prices unless they visit the store. Results revealed that when trying to maximize savings, consumers will choose retailers they believe offer the lowest prices the majority of the time.

 As authors explain, “to simulate 100 weekly purchases from a retail store, study participants were asked to purchase products from one of two competing retailers 100 different times. Participants were given a monetary incentive to minimize their total spending and were instructed to base their selections strictly on price. On each shopping trip, participants first selected a retailer before they were shown the store prices for that week. The authors manipulated the pricing strategies, but in most cases, one retailer used deep-discount pricing while the competing retailer used everyday low pricing or frequent (but small) discounts. While the average price of the two retailers was the same for most experiments, results showed that people consistently tend to choose the retailer they believe is less expensive more often than the retailer they believe is cheapest on average. This pattern held whether or not the retailer used frequent discounts or an everyday low price guarantee."

Discount rule: many little ones are better than banging one!


Addition To Your Bag of Tricks    


Authors suggest that this research offers great insight "for companies regularly using deep discounts or pricing their products lower than their competitors’ average prices. The authors suggest a more effective strategy is to simply offer prices that are generally always lower than their competitors’ prices. <..>One reason consumers find these retailers so attractive is that their product prices tend to be cheaper than those of their competitors on the majority of shopping trips. Consumers seem to prefer many small discounts to a few large ones."


*Danziger S., Hadar L., Morwitz V.G. “Retailer Pricing Strategy and Consumer Choice under Price Uncertainty.” Journal of Consumer Research: October 2014 {Thanks for the material}

P.S. When you’re done reading, I’d love for you to share your experience with discount strategies? Leave a comment or Tweet me, let's chat!

P.P.S. Need some help on crafting your marketing message? Let's do this together.

Tuesday 28 October 2014

Tuesday in India: Sometimes The Best Gift Might Be Your Time..

Do you also sometimes feel like competing with technologies for the attention of your loved ones?

I often do.

Titan, world's fifth largest wrist watch manufacturer, feels you.

Their new ad video for Indian market encourages to give the 'gift of time'.

Festive message.

P.S. When you’re done reading and watching, I’d love for you to share your favourite campaign this year? Leave a comment or Tweet me, let's chat!

Friday 24 October 2014

Friday Research: Nostalgia Shopping - Remind Them Something and They'll Buy

When Will You Use This?  


Creating promotions and product lines, raising funds.

What’s The Red-Letter Bite Today? 


Once I purchased a pretty expensive chair only because it reminded me of a beautiful chair from my grandma's house where I used to play as a kid. I bought that chair because I wanted to feel like that playful kid again.

How useful nostalgia is in marketing?

Current research* looked at how much people were willing to spend, donate, and value money when feeling a sense of nostalgia-evoked social connectedness.
Results revealed that people are more likely to spend money when they’re feeling nostalgic. One reason could be that feeling nostalgic weakens a person’s desire for money.

For example, in one study, consumers asked to think about the past, were willing to pay more for a set of products than consumers asked to think about new or future memories. Also, there was an increased willingness to give more money to others after recalling, reflecting, or writing about a nostalgic past life event.

'Where is my wallet?! I feel like doing some Nostalgia-Shopping!'

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As authors suggest, "this information is useful to brands looking to elicit feelings of nostalgia in their promotions and product lines as well as charitable and political organizations looking to raise funds for others. During times of recession, the authors note that consumers are more reluctant to part with their money and add that nostalgia could be used to help stimulate a dwindling economy."


*Lasaleta J.D., Sedikides C., Vohs K.D. “Nostalgia Weakens the Desire for Money.” Journal of Consumer Research: October 2014. {Thanks for the material}

P.S. When you’re done reading, I’d love for you to share your experience with nostalgia in marketing? Leave a comment or Tweet me, let's chat!

P.P.S. Need some help on crafting your marketing message? Let's do this together.

Tuesday 21 October 2014

Tuesday in India: Don't Bother Asking the Whole World. Ask Experts.

Indians love advice, guidance and tips.

Both, give and receive.

Even about the things they have no idea or knowledge of.

That's why this new video campaign from CarWale is a spot on.



P.S. When you’re done reading and watching, I’d love for you to share your favourite campaign this year? Leave a comment or Tweet me, let's chat!

Friday 17 October 2014

Friday Research: Holymackerel, Don't Let Your Customer Buy and Avoid Buyer’s Remorse

When Will You Use This?  


Developing tactics in order to increase customer satisfaction.

What’s The Red-Letter Bite Today? 


We all know this feeling: it’s the last day of the month, your wallet is light as a feather.. Suddenly, you get seduced by a very attractive ad and buy a new pair of beautiful pumps. Just like that. They are really beautiful but you suddenly get mixed feelings: satisfied and guilty.

Current studies* measured satisfaction from purchases made with the last of participants’ financial resources. Results revealed less satisfaction with a purchase if someone thinks it will be difficult or take a long time to replenish their budget.

On the other hand, if someone comes into money without any effort—like winning cash from a contest or a lottery—they are more satisfied with their purchases if funds were running low compared to if they already had plenty of financial resources.

So Happy, So Broke!


Addition To Your Bag of Tricks    


As authors suggest, "brands looking to increase customer satisfaction can run product promotions during times of the month when they believe consumers have more money in their budgets. Additionally, to reduce the pain of spending one’s last dollar and increase product satisfaction, brands can use coupons and special pricing incentives at times of the month when they believe consumers have exhausted their budgets."


*Soster R.L., Gershoff A.D., and Bearden W.O. “The Bottom Dollar Effect: The Influence of Spending to Zero on Pain of Payment and Satisfaction.” Journal of Consumer Research: October 2014 {Thanks for the material}

P.S. When you’re done reading, I’d love for you to share your experience with increasing customer satisfaction? Leave a comment or Tweet me, let's chat!

P.P.S. Need some help on crafting your marketing message? Let's do this together.

Tuesday 14 October 2014

Tuesday in India: I Bet You're Looking At Your Screen Now. Look Away


Have your kids around?

Off your computer, then.

The food brand Kissan's new video will encourage you to stop and smell the roses with your family. 

Or grow tomatoes.

Superb storytelling anyways.

 

P.S. When you’re done reading and watching, I’d love for you to share your favourite campaign this year? Leave a comment or Tweet me, let's chat!

Friday 10 October 2014

Friday Research: Do You Have to Sacrifice Quality Figurine to be Green?

When Will You Use This?  


Creating and developing positioning strategies for your new and improved products.

What’s The Red-Letter Bite Today? 


Nowadays it's quite common for companies to upgrade and add new product features in order to increase the desirability of a product. Many companies choose to redesign popular products using materials that are more environmentally-friendly. But do consumers really respond better to the "greener" products?

Current research* puts focus on green product enhancements and specifically, how the communication of environmental benefits as intended or unintended affects consumers’ purchase decisions

As authors explain, "in a series of studies, consumers learned about a company that manufactures household cleaning products and were told that the company either intended to make the product better for the environment or that the environmental gain was the result of another improvement. Consumers thought the products were higher in quality and were more likely to purchase the cleaning products when the improvement was unintended. Even when the company’s intentions were not disclosed, consumers thought the products suffered from a quality control problem, suggesting that consumers automatically perceive green products as being lower quality even when a company does not specify its intentions."

Green works for environment, but will it work on my stains?, consumers worry.


Addition To Your Bag of Tricks    


This research suggests a few communication tips for companies, manufacturing green products or thinking of improving some basic product features to become more friendly to the environment. As one of the most important issues for consumers when deciding whether or not to purchase green products is "whether the quality of the green product is undermined", the authors suggest to either position the improvement as unintended or emphasize that the primary goal is improving the quality of the product.


*Newman G.E., Gorlin M., Dhar R. “When Going Green Backfires: How Firm Intentions Shape the Evaluation of Socially Beneficial Product Enhancements.” Journal of Consumer Research: October 2014 {Thanks for the material}

P.S. When you’re done reading, I’d love for you to share your experience with redesigning a product ? Leave a comment or Tweet me, let's chat!

P.P.S. Need some help on crafting your marketing message? Let's do this together.

Tuesday 7 October 2014

Tuesday in India: This is For The Selfie Addict in You


There is no bigger love than love for yourself.

Riding on a modern selfie madness, Sony India has delicately introduced a brand new Xperia C3.

You won't see a proper promotional ad but rather a hilarious catchy video which is oh-so-true for many selfie-obessed girls out there.

Laugh yourself silly.

   

P.S. When you’re done reading and watching, I’d love for you to share your favourite campaign this year? Leave a comment or Tweet me, let's chat!

Friday 3 October 2014

Friday Research: Rude Service - Yes, Give Me More of That!

When Will You Use This?  


Creating and developing various ways of improving your customers' experience.

What’s The Red-Letter Bite Today? 


It’s quite common to hear luxury shoppers complaining about snobbery and rude salespeople at the high-end boutiques. But could this be good for your luxury brand?

Current research* examines the circumstances in which consumers increase their regard and willingness to pay after brand rejection.

Results showed that after threat, consumers have more positive attitudes and higher willingness to pay when:

1) the rejection comes from an aspirational (vs. nonaspirational) brand,
2) the consumer relates the brand to his/her ideal self-concept,
3) s/he is unable to self-affirm before rejection,
4) the salesperson delivering the threat reflects the brand,
5) the threat occurred recently.


'You think I don't belong here? Bring me everything from the menu!'

Addition To Your Bag of Tricks    


This research reveals that participants who expressed an aspiration to be associated with high-end brands also reported an increased desire to own the luxury products after being treated poorly. This was only true if the salesperson appeared to be an authentic representative of the luxury brand.

Basically, this shows that some people, when made to feel they don’t fit with the luxury brand, are motivated to prove they actually do - that is by making a purchase. When a retailer signals, “’No, you don’t deserve to be here,’ it looks like a challenge and a customer thinks, “I’m going to show you I have a right to be here.

However, while the snobby salesperson could encourage an impulsive purchase, the experience ultimately leaves customer with a poor impression of the brand. The winning formula to increase sales for your luxury goods is to make your store and staff more approachable and less intimidating.
  

*Ward M.K., Dahl D.W., “Should the Devil Sell Prada? Retail Rejection Increases Aspiring Consumers’ Desire for the Brand.” Journal of Consumer Research, October 2014 {Thanks for the material}

P.S. When you’re done reading, I’d love for you to share your experience with luxury shopping? Leave a comment or Tweet me, let's chat!

P.P.S. Need some help on crafting your marketing message? Let's do this together.