A review of the different types of traditional loyalty programs, the challenges associated with those programs, and the potential benefits of blockchain-driven programs reveals the benefit of adapting blockchain technology to loyalty programs.
A team of researchers offers a framework to help organizations support creativity more effectively. Elements of this framework including balancing the usefulness and originality of creative ideas depending on the organization’s needs and choosing the best approach to creative ideas: 1) focusing on the sheer quantity of new ideas, 2) exploring the potential of a category, or 3) looking for creative ideas across categories.
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.
While digital age marketing channels such as social media marketing and mobile marketing has captured the public’s attention, the view from the Chief Marketing Officer’s desk is more measured, according to a new survey of marketing leaders in the U.S. Social media marketing continues to grab more and more of the marketing budget, for example, but measuring its impact on the bottom line remains elusive.
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.
The benefit to companies of bundling products and services is complicated. Consumers will demand more compensation and feel greater dissatisfaction if a component is missing from a bundle than if it is missing in isolation. However, consumers will be willing to pay less for an item added to a bundle (and derive less satisfaction from that item) compared to the same item purchased separately.
New research reveals that buyers of hedonistic, luxurious products often feel guilty about their indulgent purchase — but that bundling even a small utilitarian feature with the product can assuage this guilt and make consumers more likely to buy and increase willingness to pay.
Forget discounts. Customers perceiving a genuine effort by companies to invest in the customer relationship will feel grateful toward the company — an emotion that leads to overall (and longer lasting) customer satisfaction.
Our brains prefer to think in straight lines: if one bag of oranges costs $5, then two bags cost $10 and three cost $15. However, this bias toward linear thinking often traps unwary business decision-makers who fail to recognize the non-linear relationships they are dealing with (e.g. increasing retention rates from 10% to 30% or from 60% to 80% does not have an equal 20% impact on customer lifetime value).
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.
Marketers may be underestimating the impact of their marketing campaigns, which, a new study shows, impacts not only the target customers, but also the social connections of those customers.
Companies can form a ‘first impression’ of a customer based on the information collected during a customer’s first transaction with a company. This first impression data can help companies predict how often new customers will purchase in the future and how much money they will spend on each transaction. It can also help companies target their marketing campaigns more effectively.
Past research has shown that products and services that don’t fit specific market categories are more likely to fail in the marketplace. A new study demonstrates that even a product with all the attributes of its category can fail. To truly understand the competitive dynamics of its market, a company needs to look beyond categories, and focus on the customer expectations that underlie those categories.
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.
Many excellent new products fail because companies fail to understand how customers make their purchasing decisions. Specifically, customers decide what they want to buy based on one of two things: their search for new information or the inferences they make based on the information they have. Great new products fail when through their searches or inferences, customers fail to recognize their value.
Companies should not assume that all customers see the benefit in corporate social responsibility. Some focus on the costs — and are concerned that unfair prices are being used to finance CSR.
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.
The position of Chief Marketing Officer has come under fire recently, with some arguing that a CMO does not really add value to a company. A new research study counters this view; showing that companies with CMOs perform up to 15% better than companies who leave the CMO seat empty.
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.
Shoppers bringing their own bags help reduce the adverse environmental impact of plastic bags. New research shows, however, that the environment is not the only winner. Environmentally conscious shoppers are inspired to buy more expensive organic products, and reward themselves with unplanned indulgent purchases — a boon to grocery stores.
Are customer satisfaction surveys worth the trouble? Addressing and correcting for some of the core issues with customer satisfaction surveys — specifically, that they are based on perceived and not actual performance, and that there is a potential bias in the results based on who fills out the surveys — a new study confirms that they provide vital information for businesses, including the link between performance and customer behaviour.
Shoppers find consumer reviews to be less useful, and are less likely to seek out such reviews, for experiential purchases (events to be lived through such as vacation packages) than for material products (objects to keep such as electronics).
Customers don’t always inform a business that they are no longer customers. A new model, developed by researchers from Columbia Business School and London Business School and based on customer behaviour, allows companies to disentangle customers who are still active customers from customers who have ‘silently left’. The model also identifies customers who are in danger of leaving.
A new tool, based on scoring brands on their centrality (i.e. the brand of record) and distinctiveness (i.e. the brand that stands out from the crowd) can help marketers and strategists determine the best paths for growth and profitability.
Different types of services — from ‘complementary smoothing’ services such as maintenance support to ‘substituting’ services such as leasing arrangements — can be more or less effective depending on the current phase (early ferment, middle transition, or late mature) in the life cycle of the product’s industry.
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.
How do organizations respond to multiple business logics with conflicting sets of rules and norms? New research based on a study of four French business schools reveals that institutional and organizational identities will guide an organization’s response.
