2 euros off or a complementary recipe book?
Price-based incentives remain one of the most common types of sales promotion. However, non-monetary incentives have become increasingly more common. Non-monetary incentives mean that consumers receive a free gift (premium) with a purchase of a product. A good example is McDonalds’s Happy Meal, which comes with a free toy.
So what do consumers prefer? 2 euros off or a complementary recipe book? A recent study looked at the fast moving consumer goods (FMCG) retail sector to explain why price cuts are superior to premiums.
Nowadays we are more individualistic than ever. We are encouraged to make our own decisions, live the life in a way that we like. And yet, 72% of ads contain assertive language. Brands tell us what to do quite explicitly - “visit our Facebook page”, “floss daily”, “eat healthy”.
How do people react when brands tell them what to do?
We all know that one friend who wants to have luxury products so bad, they don’t spend too much time thinking whether they actually need the product or if it is of good quality. They just want to have it, no matter what!
Other people are completely insensitive to luxurious brands. They explain that they can buy high quality products from cheaper brands, too.
These are examples of two groups of people. What drives their behaviour? Neuromarketing has the answers.
Even Eminem benefits from neuromarketing
Remember Eminem? He was gone quiet for almost four years. Lately, Post Malone, Drake and Kendrick Lamar have been topping the Global Charts.
Every year in November, MTV Europe Music Awards (EMA) review the year and award the best songs. This year, to everyone’s surprise and confusion, Eminem won the Best Hip Hop song with his most recent creation “Walk on Water”. The song was released days before the EMAs. Even Eminem himself was confused with his award as he hasn’t done anything in years. Was the song so great that everyone instantaneously fell in love with it?