Some recent research conducted by Janiszewski and Uy has focussed attention again on the notion of psychological pricing. Are we really fooled when storekeepers price something at $9.95 instead of a round $10?
Their experiments used hypothetical scenarios, in which participants were required to make a guesstimate the wholesale cost when told:
The retail price
The retailer had [...]
Filed under: Research, Retail Operations, Selling | 2 Comments »
A little pick-up truck (“Ute”) drove past me today. Name of the business: ‘Complex Solutions’. That would be kinda the opposite of what I want.
Why not: Simple Solutions
Sign at the coffee shop entrance in a busy mall. ‘Come and in and see our extensive menu.’ Extensive OR Expensive to the hurried eye perhaps?
Why not: [...]
Filed under: Customer Service, Marketing, Retail Operations | 1 Comment »
How to Discount without destroying margin
The following steps/ checklist should be applied before a product is discounted. Too many retailers are lazy marketers and resort to discounting as the first (and only) option when more often than not discounting is just an exercise in margin destruction. Discounting is a race to the bottom – and [...]
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Filed under: Marketing, Selling | No Comments »
You have heard the stats about how 1 annoyed customer will tell 7 others?
Well, I told 80. As it goes with bad service and outright systemic stupidity, I regaled my MBAs at MGSM with the story of Dell Hell. It started when a major blogger in the US used his blog to slam Dell for [...]
Filed under: Customer Service, General, People, Selling | 1 Comment »
Some more ‘old’ research that has stood the test of time.)
However, I thought it might be worthwhile publishing this ‘for the record’ so that you now can know (and say) with confidence, based on scientific evidence, that these two shopper profiles exist.
But more importantly, it is worth considering what the practical uses of [...]
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It has been quite a while since I had the need to flick through my thesis, but when I recently did, I found this little gem. (It dates back to 1997, but like any good research, it stood the test of time ) Although not the purpose of the research, a diverse collection [...]
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Whether it be your personal life, in business interactions, or on the retail shop floor, first impressions are critical. Once someone mentally labels you as “likable” or “unlikeable,” everything else you do is viewed through that filter.
You can’t change this—the human brain is hardwired in this way as a prehistoric survival mechanism—you can learn [...]
Filed under: Customer Service, General, Management, People, Selling | 3 Comments »
