Minimize Pricing Spoilage - “If you have to ask, you can’t afford it” is a motto of luxury purchasing exclusivity. An adaptation of the phrasing to become “If you choose to ask, you w...
Thursday, November 28, 2013
Thursday, November 21, 2013
Consumers love a sale. In fact, when asked what makes a sale appealing, most simply say, “The price was good.” But this answer fails to acknowledge that subjective factors also contribute to the perceived value of a deal. According to new research published in the Journal of Consumer Research, it’s possible to increase the perception of a good deal.“We find that the more a consumer relies on the original price when trying to determine a product’s worth, the more valuable they perceive the deal to be,” write authors Christina Kan, Donald R. Lichtenstein (both University of Colorado), Susan Jung Grant (Boston University), and Chris Janiszewski (University of Florida). “If a retailer can get a consumer to pay more attention to a $179 original list price, and less attention to a $99 sale price, when assessing the worth of a winter jacket, then the $99 sale price will seem like a better deal.”
The study research summarizes three situations in which list prices have more influence on the estimated worth of a product and, by extension, the perceived value of the deal. In three different experiments, the authors reveal that when a consumer focuses on competing product similarities, they are more likely to consider all of the available information when judging the worth of a product. That is, both the original list price and the sale price are used to determine the perceived worth of the product. In contrast, when a consumer focuses on product dissimilarities, the consumer is more likely to consider only the sale price when determining the subjective value of the product.
“This research provides insights for both retailers and consumers. Retailers can make a sales event more effective by encouraging the consumer to rely on the original price when assessing both the value of the product and the value of the deal. Additionally, by comparing product prices at competing retailers, consumers can lessen the impact of the original price on their assessment of the products’ overall worth,” the authors conclude. o
Upplagd av Magnus Ohlsson kl. 7:28 AM
Wednesday, November 20, 2013
If presented with looking at an image or reading a paragraph describing the same product, consumers often prefer the visual option. However, according to a new study in the Journal of Consumer Research, visual presentation can lead to information overload and result in less systematic consideration especially when making a purchasing decision.
“Consumers prefer product information that is presented visually in pictures rather than verbally in words. Visual presentation feels easier and faster to process, and with visual depiction consumers perceive more variety in their selection,” write authors Claudia Townsend (University of Miami) and Barbara E. Kahn (Wharton School of the University of Pennsylvania).
The authors studied how consumers process visual information in both small and large groups of images. Their experiments used eye-tracking software to identify whether the participants processed the image groupings in a more random pattern or in a more systematic, left to right, approach similar to reading.The results demonstrated that while people claim to prefer visual depictions, there are choice situations in which they should take more time to process the information more deeply. The authors also determined that small image sets are key to reducing visual overload, the less systematic processing of information resulting in a negative influence on perceptual and behavioral consequences.
An example of visual overload is in mobile apps, which heavily favor graphics in the user interface. The use of too much imagery can unintentionally lead consumers to bypass the point of purchase.
“While visual images are fun, there may be a tendency to gloss over them rather than make a purchase,” the authors conclude. “At the point of actual consideration for purchase, a text-based interface should cause consumers to slow down, review each option more carefully, and be less likely to opt out of the choice.” o
Upplagd av Magnus Ohlsson kl. 8:47 AM