While higher brand equity products will attract greater loyalty from their customers, new research reveals different ways to strengthen the relationship between equity and loyalty. Such efforts to strengthen the link are worthwhile since the relationship does not always hold true. One customer segment, the study shows, perceives a brand’s equity as high but is not loyal — and surprisingly another segment perceives a brand’s equity as low but still remains loyal.
A recent study confirms that consumers’ desire for control over their lives can act as a psychological barrier to the acceptance of new or innovative products. However, framing a new product as increasing consumer control can eliminate this barrier.
Is branded paid advertising worth the money? A 2015 study based on eBay traffic said no: prospects using brand name searches will find their way to the website, with or without paid ads to lead them. A new study, however, using a brand that is not one of the largest in the world, shows a different result: about half of the customers are lost.
With traditional marketing losing its impact in today’s overcrowded marketplaces, marketers are developing creative covert campaigns to create buzz around their products. Sometimes, however, these covert campaigns can backfire.
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.
Reflecting the impact of customer review sites, new research shows that independent hotels are adjusting their advertising spending based on reader reviews — the better the reviews, the less they spend.
Cell phones are distracting, pulling our attention away from our current tasks and activities. New research reveals that the mere presence of the phones, even when they are turned off and we are consciously focusing our attention on another task, is enough to reduce our thinking capacity.
New research reveals the potential benefits and pitfalls of including paid social media endorsers in new marketing efforts. The research notably revealed that paid endorsers are either eager to participate or very effective — but rarely both.
Diversified or decentralized firm face a conundrum: How do you ensure that marketing decisions are consistent across the entire company without undermining the flexibility required to tailor marketing decisions to local circumstances? The answer: A marketing doctrine based on unique principles that guide without dictating.
Talking geckos and other anthropomorphic “spokes-characters,” are ubiquitous in advertisements. Various studies reveal some of the psychological reasons explaining why and how anthropomorphic marketing works — as well as some of the potential risks.
Recent research identifies physiological reasons that public service announcements (PSAs) are effective. Specifically, the researchers show that increases in two neurochemicals — adrenocorticotropic hormone and oxytocin — result in greater attention and action from viewers.
Customers have price expectations in their minds before entering a store, as well as expectations of prices in other stores. How customers update their expectations once they see the actual prices can help businesses better manage their promotions and sales for maximum effect.
Marketers have long known that product choice cannot be predicted reliably by knowing someone’s sex. Multiple factors — ranging from age and income to lifestyle and family preferences — influence purchasing decisions. Now, there’s another variable to add to the list. Recent empirical research suggests that digit ratio — the relative lengths of the fore and third fingers — is linked to the product choices of men.
Companies sometimes use covert ‘cues’ and ambiguous images to advertise their products. This ‘purposeful polysemy’ enables them to target minority groups without alienating ‘mainstream’ consumers. It is not, however, a foolproof strategy. Research suggests that heterosexual men respond less positively to ‘gay window’ advertising.
A new study, recreating real-world marketplace conditions, shows that positive feelings evoked by ads can create positive feelings toward brands, both directly and indirectly. This applies to all products, although hedonistic products show the greatest impact of ads on brand attitudes.
Placing brands with different ‘personalities’ next to each other, as in a block of ads during a TV commercial break, impacts how consumers view the brands, new research shows. For example, a safe, efficient product seems like a more exciting choice simply because its ad followed the advertisement for another product that emphasizes excitement and adventure. But this brand-pairing effect only happens when consumers are not paying too much attention to either brand… as when they’re fast-forwarding through the commercials of a taped TV show.
When putting together an advertisement campaign, how many positive aspects of the product should you include? The temptation is to put in as many as possible, but according to this Idea, three is the optimal amount. Add more and you risk raising suspicions in your customers about the authenticity of all of the claims.
Spending on search advertising has skyrocketed in recent years. But experiments conducted by researchers from UC Berkeley, the University of Chicago and eBay Research Labs suggest paid search may not be as effective as is thought. Particularly in the case of well-known brands, it seems it has little or no effect on sales as, in its absence, loyal customers will find other channels to visit the company’s website anyway.
Human beings may be biologically hardwired to prefer the first option presented to them, particularly if they have to make that choice quickly. Businesses can use this finding to tailor their marketing and other strategies to nudge customers towards a particular product or service. Recent research confirms the importance of being first and why this should inform point-of-sale, online, and other marketing messages.
Warnings of the health risks and possible side-effects of products are commonly considered an important part of consumer protection and responsible marketing. But they can be counter-productive. Recent research suggests they not only fade over time but also lead to perverse increases in consumer confidence and product sales.
Seeing red and yellow together is likely to make you think of McDonalds, according to this Idea. Such is the power of colours on brand recognition and long-term storage of advertisement information. Certain colours in particular are more stimulating than others, and marketing executives can use this information to build stronger advertising campaigns.
Retailers commonly highlight prices and ‘good deals’ in red in their ads and promotional material. But relatively little is known about how this affects consumers. New research reveals that the impact varies significantly by gender. Put simply: men are likely to see a bargain when they see red; women are far less easily swayed. The findings have clear implications for companies — and for precision marketing.
Companies pay celebrities large sums of money to endorse their products and ‘star’ in their advertising campaigns. Until recently, however, little was known about the processes that underlie the persuasiveness of fame. Now, research in neuroeconomics (a field that crosses the disciplines of psychology, economics, marketing and neuroscience) is providing insights into the neural effects of celebrity endorsement — and suggesting ways advertisers can best use celebrities to influence consumers and their decisions.
Does making a healthy food choice make us angry? In an important piece of consumer research, a relationship is found to exist between exerting self-control, and a preference toward ‘themes of anger’ in e.g. entertainment. This mismatch - getting irritated by our own self-control - has far-reaching implications for marketers and policy-makers as we try to further understand consumer behaviour.
