We live in a returns culture, where delivery is free and so are the returns. Zero shipping fees and favorable in-store return policies make it very attractive to bulk buy products consumers don’t need. When consumers return their purchases, it causes losses for the companies due to extra logistical and repackaging costs. An increasing amount of returns have a negative impact on the environment too.
Marketers should strive to reduce the returns to save costs and reduce the adverse footprint on the environment. A recently published study has discovered a simple yet highly effective technique companies can use in this regard.
Would you rather have a 10% chance to get your product for free or a fixed 10% discount? And what does your customer prefer? Mazar, Shampanier & Ariely (2017) decided to investigate the attractiveness of this probabilistic free price promotions. Find out how to use the Las Vegas Gamble discount in your advantage!
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.
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.