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Shopper Marketing

Book Review: Shopper Marketing – How to Increase Purchase Decisions at the Point of Sale, Edited by Markus Stahlberg and Ville Maila

From a neuromarketing standpoint, the point of sale is a potent place to make a branding impression. One has the customer in the retail environment, the product in hand, any point of sale material in plain view, and so on. The experience can be further enhanced by video, scent, even human interaction. Compared to other forms of conveying a product or brand message, the concept of “shopper marketing” is inherently appealing. […]

By |May 10th, 2010|

Green Marketing: Light Up Sales

“Green marketing” usually refers to using an environmental pitch to sell a product. A car creates less pollution, a paper product is made from recycled content, and so on. Results of appealing to environmental sentiment have been mixed. On one hand, the Toyota Prius has sold better than would be justified purely by the economics of the premium-priced vehicle. On the other hand, many people aren’t willing to suffer even a minor inconvenience in the name of the environment, as shown by the hotel towel experiment I described in Green Marketing Doesn’t Work. Beyond overt green marketing, though, some environmentally sound practices are simply good for business. One study shows that changing the retail lighting environment can be good for the environment AND boost sales: […]

By |January 19th, 2010|

The Neuromarketing of Burgers

There’s hardly a shortage of places to buy hamburgers in the US, but the restaurant chain Five Guys has opened 300 stores in the last five years, and has contracts for many more. Locally, I’d been hearing about the fantastic hamburgers and fries at Five Guys for months, and finally ventured inside to see what has allowed the chain to grow in a seemingly saturated market. What I found were very good burgers and even better applied neuromarketing. In one short visit, I saw a variety of different techniques, most of which I’ve written about in past posts: […]

By |October 15th, 2009|

Signs and Sales DO Work

What do you get when you wire up a shopper with an EEG cap and eye-tracking gear? An “inside” view of how that shopper reacts to visual stimuli while shopping. Interestingly, all of those “Buy One, Get One Free!” and “SALE!” signs in your grocery store actually DO get your brain to light up. Here’s Today Show video and commentary from Buyology author Martin Lindstrom exposing some of the ways stores attract your brain’s attention and ultimately get you to put more stuff in your shopping cart: […]

By |March 6th, 2009|

Where NOT to Sell to Retail Customers

If you want to be sure to make a great impression on your retail store customers and let them know about today’s great bargains, where should you make your pitch? Just as they enter your store would at first glance seem to be the optimal place. After all, you’re guaranteed to catch 100% of the incoming shoppers, and they are no doubt looking for some guidance, right? And, if you were welcoming someone to your house, you’d do it as they crossed the threshold, so why not do the same in a retail store? […]

By |February 10th, 2009|

Order vs. Disorder: Surroundings Matter

While our behavior is clearly influenced by our surroundings – most of us act differently in a church vs. a nightclub – new research shows that very subtle differences can have a significant behavioral impact. Specifically, new research shows that environments with “disorder” cues cause people to be less likely to conform to social norms. […]

By |January 13th, 2009|

More Decoys: Compromise Marketing

Why a logical product lineup may not be the most profitable
 

When marketers plan a company’s product offerings, they usually try to do so in the most logical way possible. Several levels of product may be offered – a stripped-down, basic version, a more capable better version, and perhaps a “best” version. These would normally be priced at quite different levels, probably based in part on the relative manufacturing costs of the products. In one of my most-read posts, Decoy Marketing, I described research that showed how a seemingly irrational pricing strategy, i.e., pricing an inferior product either the same or almost the same as a better one, could boost sales of the better product by making it look like a bargain. (In that case, the inferior product is the decoy.)

Now, let’s look at a different kind of decoy: a new high-end product that, even if it sells poorly, can boost sales of the next product in the lineup. Stanford Business describes how this can work: […]

By |December 3rd, 2008|

Product Contagion in Action

I’ve been traveling quite a bit recently (which explains the lower rate of Neuromarketing posts), and at a recent stay at a Jameson Inn in Indiana, I encountered the above product arrangement on the shelf of their little convenience shop next to the check-in desk. While most of the studies have looked at the effect of juxtaposing products, say, in a shopping cart, this is an unusual example of product contagion right on the shelf. (If you didn’t catch my previous post, “product contagion” refers to the demonstrated ability of a product likely to arouse disgust in a consumers mind to “contaminate” nearby products, as in a shopper’s cart. Put your cookies next to a bag of kitty litter and the cookies become less appealing.) I’ve got to wonder how Instant Lunch sales at this particular hotel compare to sales at other Jameson locations…

And that product positioning wasn’t the only neuromarketing gaffe I found during that stay. Clearly, the central office didn’t read Green Marketing Doesn’t Work (or Cialdini’s book Yes! ) when they wrote the copy for this card: […]

By |October 13th, 2008|

Product Contagion

I recall the first mega-store that opened locally – it happened to be a Meijer store, though now Super Wal-Marts, Super Targets, and other stores that sell everything are common. It was interesting to watch what other shoppers had in their carts as they checked out – a gallon of milk, a floor mop, khaki slacks, and a chainsaw… one could start a creative writing contest in which entrants had to write a story based on shopping carts full of disparate items. As it turns out, there’s a downside to at least some of those weird product juxtapositions. New research shows that products that trigger subconscious feelings of disgust can “contaminate” consumer perceptions of other products. […]

By |May 24th, 2007|