New research reveals that promotions are more effective with luxury and hedonic products (think Godiva chocolates or that vacation by the sea) than for more utilitarian products. The reason: they help reduce consumer guilt about the purchase.
Different brands have different relationships with their customers, just as social relationships differ among people (casual friendships, committed relationships, etc.) Some relationships are strictly transactional; in the case of brands, customers expect value for money, and little else. Other relationships are more of a partnership; customers expect the brand to ‘care,’ just as caring is a component of certain social relationships. New research from the Rotman School of Management and Duke University’s Fuqua School of Business advances the concept that brand relationships mirror social
