When we choose products, it is easy to assume we are doing so because of the benefits – or perceived benefits – they offer us. Whether it is the newest generation smartphone, our safe and reliable family car, or our favourite wine, do we not base our choices on the value a particular product holds […]
Subject: Marketing
How to Communicate CSR Online to Stakeholders
The way companies inform and report on their CSR programs has evolved in recent years, with online channels either complementing or supplanting more traditional offline methods of communication. Blogs, social media, and company websites all come into play, but how successful are companies at actively engaging and interacting with their stakeholders? Recent research outlines the […]
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The Power of Colour in Marketing
Colour has been found to affect cognition, moods and feelings, all of which in turn can influence consumer decision-making. According to the US-based Color Marketing Group, it can increase brand recognition by up to 80 per cent. Not surprisingly then, numerous studies have focused on the effects of colour in marketing and advertising, clearly demonstrating […]
Pricing and the Power of Red
The colour red has long been associated with pleasure, and its effects have long been the subject of research. Studies have suggested that it serves as a ‘heuristic cue’ or shortcut when people make judgments and decisions. (In 2008, for example, researchers found that sports referees assign more points to competitors wearing red than those […]
Word-of-Mouth and On/Off Line Marketing
Word of mouth (WOM) behaviour has attracted a lot of attention from marketing executives in recent years, particularly in light of the increase in size, number and character of online communities. According to a 2012 Marketing Week article, WOM has moved on from the simple message passed on when someone sees a friend face-to-face and […]
Healthy Bottom Lines – Food Marketing and Obesity Prevention
A review of consumer research (based mainly in North America) and of literature from marketing and related social science disciplines confirms that marketing affects food consumption in ways beyond advertising. Pricing is one of the strongest influences. One econometric study, for example, found that a 10 per cent increase in prices at fast-food and full-service […]
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Celebrities in Advertising: Neuroscience Insights
Over the past 25 years, use of celebrity endorsement by big-budget advertisers has grown significantly. Despite this, it’s unclear why famous faces should be more effective in advertising than (equally attractive) non-famous ones. Studies in 2005 and 2008 suggested that the pairing of a positively valenced stimulus (a celebrity) with an initially neutral stimulus (a […]
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Myopic Pricing Strategies Lose Seasonal Sales
According to Mirko Kremer of Pennsylvania State University, Benny Mantin of the University of Waterloo and Anton Ovchinnikov of the University of Virginia’s Darden School of Business, there are two types of consumers. The first type is what they call “myopic consumers.” These consumers buy a product as soon as that product is priced at […]
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How Checkout Lines Affect Consumer Purchases
For many strategic decisions such as product development or market expansion, retailers have access to sophisticated information on which to base these decisions. When it comes to customer service, however, the information is less complete. Retailers may have extensive data on customer purchases, for example, but no data on how long those customers stood in […]
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Precise First Offers in Negotiations Vs Rounding
In a typical negotiation process, one of the parties will make an opening or first offer, which is then met by the recipient of that first offer. Prior research has shown that negotiators ‘anchor’ on this first offer, which means that the resulting settlement will be biased toward the first offer. Four academics from Columbia […]
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