Align PWYW Cost Structure with Value

To broaden availability for financially constrained consumers of offerings like museum visits, dance workshops, and online courses, the provider could feature a “Pay What You Want” (PWYW) policy. Then to maintain financial viability of the offering, the provider would want purchasers to pay as much as they could. Findings by a set of researchers at University of Surrey, WU Vienna University of Economics and Business, and University of Zurich point to a method for doing this.
     In presenting the method, the researchers distinguish between what they call alignable and non-alignable costs. A provider’s alignable costs are those which align with value to the consumer. With a museum, this might be the fees for mounting an exhibit of famous works. With an online course, it might be the fees paid to skilled teachers. On the other hand, a provider’s non-alignable costs are understood as necessary, but as not by themselves providing consumer value. Examples include advertising, rent, and utility bills.
     The researchers recommend describing alignable costs as part of a PWYW offer. This requires the provider to carefully determine what the consumer will value and to ensure that this is an integral part of what’s offered. To help the consumer decide on a fair price, the researchers recommend also including a reference price—how much is usually charged for the offering.
     A provider disclosing information about themselves, such as about their costs, establishes a sense of trust and fairness which can increase PWYW amounts. But the researchers recommend listing the types of costs, not the actual monetary numbers. The numbers can be hard to estimate because they depend on usage volume, and for an expensive offering of superb quality, the actual high money figure could alienate an economically challenged consumer rather than persuade them to maximize their voluntary toll.
     In one of the studies, participants were offered PWYW enrollment in a workshop by ImPulsTanz, Europe’s largest contemporary dance festival sponsor. Prospects given alignable cost structure information (“…pay the renowned workshop teachers from all over the world”) paid about 46% more than those not given cost structure information or those given only non-alignable cost structure information (“…renting the venue… as well as the costs for the workshop office and staff …”).
     In another of the studies, the alignable cost structure appeal proved especially effective with low-pay customers--those who would have paid less than half the reference price amount otherwise.

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Serve the Underserved 

Encourage Customers to Pay What’s Right 

Disclose Yourself to Radiate Authenticity

Pay Mind to Seniors’ Theory of Mind

When persuading others or when others are attempting to persuade you, a valuable skill is you accurately perceiving the beliefs, emotions, desires, and intentions of the others. Findings from researchers at University of Turin and University of Udine suggest that this skill—called Theory of Mind (TOM)—fades as we enter our senior years.
     In the studies, participants completed tasks such as reporting what one character in a story believes another character is thinking and inferring the emotions a person is experiencing based on seeing a photograph of their eyes. Accuracy was significantly lower among the participants age 65 years and above than among participants ages 20 to 40 years.
     These findings modify impressions from anecdotal evidence that older adults can lack performance speed, but bring greater wisdom than younger people do. In fact, seniors may be deficient in real-time social wisdom and emotional intelligence.
     From a marketing perspective, this means you could benefit seniors by verbalizing your intentions and emotional reactions while selling to them.
     From a public policy perspective, a concern is that seniors are especially susceptible to scams because of inabilities to accurately determine the intentions and truthfulness of salespeople. Advanced age brings with it an increased trust in people. The elderly may not realize they’re being cheated, instead attributing their losses to miscommunication or the good intentions of the marketer having gone wrong. Rigidity in thinking—which could be experienced as feeling that changing your mind shows weakness—contributes to the problem.
     From a preventive health perspective, techniques for improving TOM skills in seniors might head off the social isolation and increased dementia risk associated with another perceptual deficit—hearing loss. An additional study finding indicates what such techniques might be: Elderly study participants who reported a history of cognitively demanding occupations showed less deterioration in TOM abilities. Continuing engagement in complex social interactions and problem-solving tasks, whether through a job, volunteering, or structured activities, should be helpful.
     From still another perspective, beyond what happens to mindreading abilities as one ages, there’s the matter of how much the elderly really care about other people’s thinking. Older adults place less importance on accumulating power or demonstrating expertise than do their younger counterparts. We could say that seniors become relatively less sensitive to peer pressure. It’s probably most true for the oldest among us. When you’re 100 years old, let’s say, there aren’t so many peers around.

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Sandbag Senior Swindles 

Slice Open the Minds of the Elderly 

Skewer Status Appeals to Seniors

Vibrate Shoppers into Purchase Excitement

When seeking desire fulfillment, a gently vibrating massage often brings bonus pleasure.
     A set of University of St. Gallen studies applies that truth to ecommerce. A medium-duration vibration on a shopper’s mobile phone while the shopper is looking at attractive alternatives leads to more item purchases and higher shopping basket totals. In the studies, addition of a vibration signal increased item adds by 3% to 18%. The researchers explain this effect as the result of a learned association between vibrations on a mobile phone and a rewarding event, such as arrival of a message or completion of a step count goal.
     In one of the studies, the impact of vibration on positive consumer response was stronger than the impact of a visual signal or a sound. Regarding this finding, the researchers note that shoppers usually receive a multitude of sights and sounds moment-to-moment, while the haptic stimulation of vibration is distinctive.
     Because the mobile phone vibrations signaling positive events are generally of medium duration, the best purchase motivation vibration might be of medium duration. Indeed, a vibration of about 400 milliseconds produced a greater reward response among study participants than did a notably shorter or notably longer duration.
     The researchers caution that the effect they’ve described could be put to unethical use. They recommend that marketers inform consumers about the effect and limit use of vibration signals in marketing of potentially addictive behaviors—such as online gambling—and with especially persuadable audiences—such as children.
     These studies fit with other research showing how sensory stimulation of a consumer in association with a product leads to positive results. Researchers at University of Texas Rio Grande Valley, Université Laval, and University of Massachusetts find sensations experienced on or in the body can convince the consumer of product effectiveness.
     In one of their studies, participants read an ad which stated, “Introducing HerbLife Balm. Our yellow balm is made from herbs such as turmeric and prai. To use the product, rub and massage a small amount on the affected area. This balm improves your physical performance.”
     The participants were then instructed to apply the balm to their arm. For some of the participants, the balm had been formulated to produce a tingling sensation shortly after application. For the other participants, the balm formulation was identical except that the ingredient producing tingling was omitted.
     Those experiencing tingles were more likely to buy the balm.

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Reach Out for What Will Touch Your Shoppers 

Rough Up Customers a Bit 

Fizz Fizz to Generate Effectiveness Perception

Dig Into Best Digital Display Practices

Digital signage—electronic screens showing video ads to shoppers in a retail store—increased likelihood of purchasing the advertised items by an average of about 8% in a study by researchers at Vrije Universiteit Amsterdam and Babson College.
     The study covered 237 advertising campaigns and 30 million shoppers. Because of the size of the sample and use of techniques to separate the effects of digital signage from the effects of other influences on purchasing, the researchers were able to specify circumstances in which digital signage was most effective. The researchers cite prior study findings in explaining why each of these matters.
     Among the best circumstances for use of digital signage are: 

• Display close to the shelved product. When the digital signage is placed close to the product being advertised, the impact on the shopper is at a crucial moment in the purchase decision process, with an increased probability of a motivating impulse. 
• For hedonic products with emotional appeal. Impulse buying is more likely with products purchased for the joy during use than for products purchased for the outcome after use. 
• For popular brands and low-priced items. Shoppers are more comfortable assuming the risk of buying on impulse when the item carries a well-recognized brand name or is offered at an especially low price. 
• For store visits later in the day. Another shopping motivation is variety seeking, and variety seeking increases when the shopper is fatigued, as happens later in the day.

     The researchers also point to characteristics of the specific use of digital signage in their field studies which might be expected to enhance the effectiveness: The display screens were in highly-frequented aisles, the video began playing as a shopper approached the screen, and the screens emitted sound to accompany the elements moving on the screen.
     Relevant to this last characteristic, researchers at King's College London, University of Bath, and Babson College explored the usefulness of stimulating multiple senses with digital displays, including an example of McCain Foods arranging for the display device to emit a baked potatoes odor. The study results indicated moderate stimulation works best. We don’t want to overwhelm the shopper to the point of disrupting the item selection process.
     Other research also points to the value of attending to characteristics of item movement in the display. For example, it’s best to show luxury products by zooming out and to show any product as being rotated.

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Display Interpersonal Warmth Above Digital Ads 

Reduce Risk Fears by Introducing Choices 

Slip Variety into Sleepy Shopper Selling 

Zoom In on Using Zoom Out for Luxury 

Turn It Around for the Sale

Femvertise for Brand Empowerment

Femvertising is advertising perceived as promoting gender equality and as challenging stereotypical portrayals of women as primarily caregivers, decorative objects, or passive observers. According to researchers at Macquarie University and The University of Newcastle, femvertising helps a brand build stronger loyalty and advocacy among female consumers. When reinforcing the power a woman has or wants to have, femvertising messages evoke positive responses.
     Examples of femvertising include the Dove “Real Beauty”, Under Armour “I Will What I Want”, Pantene “Not Sorry”, and Nike “Inner Thoughts” campaigns.
     The researchers developed and statistically validated a scale which they propose marketers use to assess the quality of a brand’s femvertising. Items on the brief version of the scale, along with the themes being measured, are: 

• [Brand name]’s ads present women as empowered in their choices (Empowerment: Portrays women as confident, ambitious, and self-reliant) 
• [Brand name]’s ads feature diverse women from different backgrounds (Representation: Portrays women of diverse identities, backgrounds, and appearances in meaningful roles) 
• [Brand name]’s ads challenge traditional views on women’s roles (Transformation: Challenges outdated gender norms and promotes long-term social change) 
• [Brand name]’s ads highlight real actions for women’s rights (Commitment: Actively engages in advocacy and activism to promote women’s rights, roles, progress, and inclusion) 
• [Brand name]’s ads portray women in an honest way (Authenticity: Portrays women and girls as authentic, believable, and credible) 
• I feel [Brand name]’s ads reflect fair gender standards in advertising (Compliance: Complies with advertising rules, industry guidelines, policies, and ethical standards to promote gender equity)

     The degree to which a brand’s advertising exhibits these characteristics is the degree to which ad audiences will conclude, “This is a brand that supports women.” Using an online survey of women who had recently purchased a sportswear brand, the researchers demonstrated how such a conclusion enhances brand loyalty and brand advocacy.
     Attending to women’s empowerment also assists in public health and in the workplace. Campaigns to increase breast cancer screening rates work best when accompanying messages point out competencies of women. When job supervisors water down negative feedback to female employees, assuming women aren’t powerful enough to handle the truth, the employees are cheated of the constructive criticism they need to most quickly become superb performers.
     Do stay aware that strategies to empower women can face headwinds. For example, the Donald Trump presidential administration’s battle against DEI resulted in organizations hiding their woman-empowerment programs.
     Skilled femvertising holds strong against headwinds.

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Cancel Out Implications of Female Inferiority 

Criticize Women Strongly

Image at top of post based on photo by Donald Giannatti from Unsplash

Engineer Employee & Customer Satisfaction

Employee satisfaction (ES) and customer satisfaction (CS) levels have long been considered valuable indicators of—as well as analogous to a two-cylinder engine powering—the future financial health of a business. ES and CS measures are therefore of interest to prospective investors in the business.
     Now researchers at Virginia Commonwealth University, Singapore Management University, and University of Pittsburgh say that increases in social media usage and in ease of both publicly-held company stock purchasing and private-market investing by individual consumers are changing how businesses should optimally conduct their ES and CS initiatives and announce the results of those initiatives. The objective should be to demonstrate results which stimulate promise of greater shareholder wealth. Among the researchers’ observations is that firms with low CS ratings could accomplish this objective by increasing ES alongside broad social media visibility.
     The researchers propose, based on their inquiries, that individual investors are attracted to firms showing imbalance between ES and CS. The explanation is that the investors are particularly attracted by business prospects for explosive growth. Although high levels in ES and CS indicate healthy business operations, an imbalance signals prospects for improvement under skilled management. “Buy low, sell high” is the smart investor’s mantra.
     The researchers’ attention to social media visibility derives from how individual investors would assess a firm’s CS and ES levels. For CS, the individual could analyze product or service reviews. Those are abundantly available on social media sites. ES levels are more difficult to find in abundance, so it benefits the firm to post them prominently on their own.
     A team of researchers at Aston University, Technical University Munich, and University of Paderborn view the two cylinders—ES and CS—as firing off interdependently. The team’s model, resulting from a large-scale longitudinal study set in a multi-outlet retail chain, incorporates operational investments and operating profits as components.
     The model shows a lagged effect between operational investments and ES: It takes some time for the additional resources to produce an outcome. The researchers advise managers to exercise patience. There is also a lagged effect between CS and operating profits. A third lagged effect is in a reinforcing loop. That is, as operating profits change, operational investments are likely to change in the same direction in the future.
     Business firms can attract investors by properly managing the interdependencies, the prompt and lagged effects of the components, and the postings about CS and especially ES on social media.

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Serve People Just What They Expect 

Build Profits by Training to Serve 

Manage Employee & Customer Turnover