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.
Are you up to date?
Knowledge is expanding faster and faster nowadays, it’s said to double every 12 hours! This means that there’s a lot of neuromarketing facts including new tips and tricks you might have missed. The past half year, there have been articles on dominance, packaging, the prediction of Tinder dates, pricing green products, and sound/smell in stores and ads. We summarized the main findings below. Sit back in your beach chair and get ready for some new inspiration!
As a seller, you try to aim for every product to be sold at the highest final sale price. But what most negotiators do not realize, is that the initial list price is the starting point for the negotiation. In other words: your opening offer is extremely important for the final sale price.
Imagine walking through your local supermarket to buy some fruits and vegetables. We are automatically drawn to that intense red tomato because it looks a lot juicier and tastier than the ones that are pale red.
Sounds familiar? It probably is, because we learned from a young age that fruits and vegetables with richer colors are ripe and have a greater quality. This does not only apply to fruits and vegetables, but also to other food packages. We are, for example, subconsciously scanning for light colored packages when we would like to have something healthy. Our brains associate light colors with healthy options. However, this positive health indication does not always work out as positive as we expect it to be...
When looking at neuromarketing, a lot of emotions have been examined. One that may have been underexposed, is jealousy. Until now! A recent manuscript by Huang, Dong & Wyer Jr (2016) elaborates the role of jealousy in product preference. I bet you have encountered jealousy at least once in life, think about your partner having an intimate conversation with a man or woman you don’t know. Jealousy is an emotion that is encountered quite a lot in everyday life, and after reading this, you as a marketeer, can use this specific emotion to your advantage.