Justify Your Targeted Marketing

Targeted marketing by a company—for instance, sending advertising to a preselected segment of the possible audience—can benefit a consumer by reducing their handling of ads which hold little interest to them and can benefit a company by optimizing the marketing budget. Moreover, most consumers like to be acknowledged as individuals, and marketers can leverage increasingly sophisticated methods to individualize their interactions with prospects.
     Would it not be smart then for organizations to target sales promotions to specific demographic groups, such as a custom ad campaign for Blacks or for women?
     Yes, but only under certain conditions. Otherwise, say a trio of researchers at UCLA and Columbia University, stakeholders who find out about the targeting, including those receiving the special attention, are likely to consider the targeting to be unfair. This lowers engagement with the sponsor, intentions to purchase from the sponsor, and willingness to recommend the sponsor to others.
     Because the same explosion in available information and search which fuels the potential for targeting also fuels ease in discovering the targeting, consumers have at least a fair likelihood of learning about it and so sensing unfairness. As an example, the researchers cite the public outrage when journalists discovered and then reported features in Facebook which enabled ad targeting by race or gender.
     Results from the set of studies indicated that these negative consequences are less likely when the marketer explains how the targeting is relevant to a product or service characteristic. Phrasing of this sort included: 

• “The Band-Aids are available in a variety of darker shades that were tested to match the skin tones of their Black customers.” 
• “Initial testing showed that, due to the vitamin and nutrient profile of the snacks, the snacks are better suited to the biological needs of their female customers.” 
• “Specifically, testing shows that approximately 80% of women like the taste and texture, compared with only 30% of men.”

     Notice that each of these three refers to testing. This gives the statement greater credibility.
     Another method the studies indicated will ease the potential negative consequences of marketing by demographics is to explain that the organization’s budget is necessarily limited. The phrasing used here was, “A small mom-and-pop local business has developed a new product, which they believe will appeal to their female customers. This local business has very limited resources, so it must spend its modest advertising budget as carefully as possible.”

Successfully influence the most prosperous & most loyal consumer age group. For the specific strategies & tactics you need, click here.

Tap for more…

Consider Consumer Confidentiality Concerns 

Discount Discounting for Stigmatized 

Discount Doubts About Veterans’ Discounts

Charge for Virtual Goods Interoperability

If your customer has paid for their outfit, they’ll enjoy experiences in those duds more than if they’d gotten the identical outfit for free. Researchers at Western University in Ontario, University of Edinburgh, and University of St. Thomas in Minnesota found this to be true when the purchaser would be using the outfit on an avatar in onscreen video game action.
     The explanation, supported by the set of studies, is that paying for the item builds a sense of ownership, and people have more positive feelings toward experiences using items they own.
     In the studies, the purchased outfit was non-functional since the provider did not claim the item by itself would improve the player’s performance on the video game. The purchasers’ perceptions tended to be that game play was more enjoyable, but the evidence is that this was due to feelings of item ownership, not objectively better game scores.
     Although enjoying an item more because we’ve paid for it seems to go against good economic sense, not all the rules of ownership were violated. In the studies, the effect held better when there was interoperability—the purchased outfit could be used across online games. We want to be able to employ what we own in a number of different situations.
     Together, these findings have implications for marketers who want to improve the attractiveness of their virtual goods, whether for use in video games or other online activities. Offer distinguishing alternatives for a fee rather than giving them away at no cost, and, to the maximum degree possible, provide interoperability across virtual worlds, social media sites, and system platforms.
     The researchers did not assess whether the amount of item cost made a difference. But another set of studies suggests that even a nominal fee can have advantages and for reasons other than a sense of ownership: Consumers were more likely to upgrade from an 8-inch cake to a 10-inch cake when they had been told the upgrade cost 1¢ compared to when they had been told the upgrade was free. Parallel findings held for other types of merchandise as well.
     After analyzing the shoppers’ reasoning, the researchers concluded that the token cost made it easier for shoppers to appreciate the value of the deal when compared to the price of the regular version. Zero doesn’t serve well as a shopper’s anchor for analyzing the magnitude of a difference.

Successfully influence the most prosperous & most loyal consumer age group. For the specific strategies & tactics you need, click here.

Tap for more…

Downgrade Free Upgrades 

Head Off Rejection of the Handmade

Unconditionally Gift Arriving Consumers

As a retailer, you could present a surprise gift to a customer after they’ve completed a purchase. You could present a surprise gift for participation in your store loyalty program. On the other hand, you could offer a gift when a shopper enters your store, with no consumer action required. Such a tactic of unconditional gifts can nicely complement your existing programs of promotional rewards, according to a team of researchers at Northeastern University, University of Alabama, Karlstad University, Linköping University, and Norwegian School of Management.
     The studies demonstrate that an unconditional gift creates in both new and existing customers the often unpleasant feeling of obligation, which can be relieved by store spending during the current visit, and the often pleasant feeling of gratitude, which strengthens loyalty for future patronage.
     In the study conducted at a general merchandise store, shoppers receiving an unconditional gift spent about 32% more during that visit than did an equivalent group of shoppers not receiving the gift. This should be evaluated in terms of the cost to the retailer of the gift. Fortunately, the researchers determined that the unconditional gift does not need to be expensive to be effective.
     However, in another study, Northwestern University researchers found that gift recipients do tend to compare the value of what they receive with the value of gifts they see others receiving. The researchers’ suggested solution is intriguing, even if odd. They rewarded some consumers with cash and others with a slice of cake. As you’d expect, those who received more cash expressed greater joy than did those who received less cash. Yet the size of the cake slice didn’t matter, perhaps because it’s harder to calibrate slice size than monetary amount.
     Still, there was evaluation. In the studies, gift recipient joy was influenced by the flavor of the cake.
     Limiting gift value eases another problem: A risk with unconditional gifting is that customers expect ongoing gifts. An unmet expectation has a more negative influence on a customer than a satisfied expectation has a positive effect. Researchers at Macquarie University and Universidad Torcuato Di Tella found that while a bonus reward delivered regularly by a marketer can delight a customer who feels they’re receiving the reward because they’re valuable to the business, the marketer discontinuing the reward in that situation risks revenge against the business.
     Their study results indicated that revenge intentions are less pronounced when the monetary value of the treat is small.

Successfully influence the most prosperous & most loyal consumer age group. For the specific strategies & tactics you need, click here.

Tap for more…

Change Up with Entitled Customers 

Be Careful What You Have Customers Wish For 

Dazzle Customers with Surprise Gifts 

Request Reciprocity