Tuesday, July 6, 2010

Preoccupy Shoppers for Indulgent Choices

When you’d like your customer to choose the indulgent alternative—the higher-priced luxury model or the item that’s more fun than necessity—get the customer preoccupied.
  • Researchers at Indiana University and University of Houston asked one set of consumers to watch an emotionally arousing movie clip and another set to watch a movie clip that was emotionally bland. Each participant was then invited to choose as a snack either a cup of grapes or a cup of M&M candies. The consumers who had watched the arousing movie clip were more likely to choose the candies than were those who watched the bland clip. In ecommerce, showing the shopper a video with lots of emotional punch will sway them toward the indulgent.
  • Physical preoccupation works, too. The Indiana/Houston researchers took a bland movie group and asked some of them to also exercise their muscles for a while on a stepstool. This addition of light exercise increased the probability the consumers would choose the M&Ms. The implication is that asking in-store shoppers to walk from one section of the building to another gives an edge to the indulgence.
  • And cognitive preoccupation works. The researchers asked some people to memorize a seven-digit number and others a two-digit number. The seven-digit memorizers were more likely to choose the candies over the grapes. When you ask shoppers to do mental work with the price or think about alternatives for product delivery of the indulgent alternative, they become more likely to purchase it.
     Other studies support what the Indiana/Houston researchers found. But there are three conditions to consider:
  • The preoccupation moves the customer toward purchasing the indulgence only when it has to do with things other than the product itself. It’s getting the person to experience emotion from the advertising, not from thoughts about consuming the product. Physical exercise in finding the product, not in practicing use of the product. Cognitive work in thinking about the price of the one product, not in comparing prices among products.
  • This tactic is an influencer, not a determiner. Preoccupation makes the consumer more likely to choose the indulgent alternative. But it doesn’t guarantee they’ll select that choice.
  • Think ethics. Will the purchaser find full value in the indulgent, or are you manipulating them into spending money on something that is not in their best interests?
Click below for more:
Use Parity Pricing to Help Customers Decide
Sound the Prices to Project Sound Value

No comments:

Post a Comment