While material purchases are purchases of tangible products that one intends to keep, experiential purchases are purchases of products that must be experienced. Restaurant meals, movies, or vacations are examples of experiential purchases. While there is no official categorization of products into experiential or material, most consumers intuitively know the difference. Through an analysis of […]
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How well is your company performing? For many companies, the answer to this question comes through customer satisfaction surveys, which tell companies where they are successfully meeting customer expectations and where they are falling short. Although subjective — that is, based on the customer’s subjective opinion of the company’s performance — customer satisfaction surveys are […]
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When people do good things, they reward themselves. This is the conclusion of a number of previous studies into the psychology of doing good deeds. Two researchers from Harvard Business School and Duke University’s Fuqua School of Business explored through their own series of studies the business implications of this previous psychological research. The researchers […]
Read More… from Reusable Grocery Bags: How Green Customers Help the Environment-and Your Business
Customers can stop interacting with a company in one of two ways: they inform the company that they are leaving (such as when they cancel a subscription to a magazine) or they simply stop interacting with the company. Unsatisfied patrons of a theatre, for example, may decide to seek their entertainment elsewhere. The company has […]
Read More… from Tracking Customers Who Leave Without Saying Goodbye
The AIDA model of advertising identifies Attention, Interest, Desire and Action as key to the effectiveness of an advert. In order to measure the physiology behind advertising effectiveness, a research team used experiments involving public service announcements (PSAs) and focused specifically on the attention and action components of the model. PSAs are good foundations for […]
Read More… from Neurobiological Clues to Advertising Effectiveness
Online communities can be the source of staggering feats of pooled knowledge creation, with volunteers from around the world combining their expertise. Think of Wikipedia, or of Linux, or even the online community helping NASA to map craters on Mars. “Open-source software development creates products that are as good (some say, even better) as those […]
Internet-based sales have been growing steadily — companies report a 25% increase in the past year alone, according to a survey of 351 marketing executives. Not surprisingly, investment in digital marketing has also been increasing — companies expect to increase their spending on digital marketing by nearly 11% in the next year while, in contrast, […]
Read More… from Social Media Grabbing a Major Share of the Marketing Budget
For most consumers, waiting in a long queue is a frustrating experience. There is nothing to be gained from standing in a slow line at the grocery store or waiting endlessly on the phone as a call centre automated voice intones again and again that “your call is important to us.” Most consumers don’t realize, […]
Read More… from The Surprising Benefit of Long Queues for Customers and Business
Online consumers have come to expect to be able to read customer ratings and reviews as they consider which product or service to buy. On websites such as IMDB, Amazon and Expedia, reviewing the ratings from other customers is an important part of the purchasing process. Rating scales are also used in other contexts, such […]
Read More… from Why Differentiating Rating Scale Labelling is Important
When marketing their brands, companies will use image attributes, which are the impressions that the brand makes on the mind of consumers. For a car brand, for example, marketers might position their brand on the image of being ‘safe and dependable’ or ‘exciting’ or ‘tough.’ Brand consistency — using the same image or positioning in […]
Read More… from Building a Brand Image Across Multiple Countries
