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meganbos

2 Reasons Consumers Can't Help But Waste Money On Brand-Name Drugs - 4 views

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    This article talks about the tendency for consumers to buy name brand drugs. It references the similarities between generic and name brand products, and about how people "believe" in the name brand products and do not trust the generic branded drugs despite the fact that they have exactly the same ingredients in them. In terms of product this article stresses the importance of a brand name and brand image in the consumer's eye. It highlights the fact that consumers are more likely to purchase products that they trust simply because of a logo or a name, even if the product costs substantially more. The article draws the point of how consumers first believe and then are conditioned to only buy name brand products. It brings to light that consumers need to consider the price quality perception and recognize that they are paying much more for exactly the same product.
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    I found this article really relevant to my own life. I almost always buy the brand name product, especially with medications. My brother has just started to buy the Equate or Up&Up versions of Ibuprofen because he looked at the back of the bottle and found both products are made exactly the same. I completely agree with the point Megan pointed out about how we are "conditioned" to buy name brand products. My whole life, my family has always purchased brand name everything - from peanut butter, to toilet paper, to milk - because we perceived better quality with the higher price and brand name to back it up. I do agree with this to an extent that some items are made better or are of higher quality. I have been raised on these products and trust them, but I am definitely going to re-examine some of my product purchases in the future so I can save money but not trade down on quality and effectiveness.
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    I agree with Megan's statement: "It brings to light that consumers need to consider the price quality perception and recognize that they are paying much more for exactly the same product." As a consumer we typically go for name brands but what we need to realize that some products -- like medication are the same. I agree that "brand names" mean a lot to people and sometimes I don't get why. I usually go for a generic brand especially when the ingredients are the same as the brand name - it just depends on the product and a consumers willingness to stray from what they know. It would be interesting to do a blind fold experiment on many brand name products versus off brand products and see what consumers prefer.
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    I'm not a sucker! Always buy generic.
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    It often depends on what I'm buying, but if I can get the generic, knowing it works the same, I will buy that product over the brand name. For this example specifically, it is often a mind game with patients, just like the article said. If you have the attitude that you are going to get better by taking Advil instead of Ibuprofen, then you probably will get better. On the other hand, if you have the attitude that you are not get better by taking Ibuprofen, then chances are you may not because people get it in their head that they will not get better with the certain medication even though it is the same thing. Seems pretty crazy, but it's true. So I can see where people are more apt to buy the brand name products due to that perception they have of that product.
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    I totally agree with what Sarah said about it depending on what I'm buying. If I'm just getting ibuprofen, I will almost always get the generic brand from target or cvs. However, if I'm getting really any other sickness medications, I will get the brand name. Somehow it's always been in my head, like the article states, that those brands are better and will be more effective. I also think, for our generation, it depends on what we've grown up with. My parents normally buy brand name medicines (other than Advil), and I know my grandma will always get the brand names, no exceptions. It's interesting to see how people feel about this kind of thing.
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    Having dealt with migraines most of my life I was always used to grabbing Excedrin when I was at home because that is what my Dad kept around for his migraines. After coming to college and really being budgeted I found myself trying the off brand migraine relief medicines. I was hesitant but when it came down to it I found comparable relief with each and now get to enjoy the extra few dollars in my pocket. I think a lot of it was that I just grew up with a certain brand in the house so I think it matters what your parents buy because when it comes to you buying on your own it is often what you remember using. If my Dad had used off brand medications then I am sure I would have just continued that trend right off the bat and not hesitated on getting them.
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    This trend shows through with not only brand name drugs vs. generic drugs, but also with just about every kind of consumer product. It shows through with different kinds of food and drinks as well. It is very hard to tell the difference between Diet Sam's Club soda and Diet Coke, however we all tend to go with the brand name Coke product instead. This shows how consumers stick with what they trust even though the other option might be the same.
Angelo Csuti

Apple's Seductive Brand Promise: Cultural Capital and Social Mobility - 8 views

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    Despite the recent scandals regarding Apple's business practices, it has succeeded at cultivating a brand to which we feel positive emotional attachment. How does apple make a difference?
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    Apple makes a difference because they have made us brand advocates. However, after learning about the scandals going on - I double take. Can the brand we love do such terrible things? Makes me rethink the integrity of the company. The brand does seduce you but on the other hand I think that Apple is facing some merchandising management problems. There used to be buzz about new releases, but I heard a rumor that another phone will be released shortly? In my opinion they are loosing their merchandising management touch by releasing so many products consecutively. Apple is starting to lose its "make a difference" feel. How can Apple make a difference when there isn't even a difference in their products anymore.
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    I agree with Lina, Apple has gained a large following of loyal consumers, but there continue to be releases of their "new" iPhones and what not, but there is relatively few differences between the products. I was unaware of the scandals that Apple is a part of, and it makes me wonder if more people become knowledgeable about the situation will that reduce their customer loyalty and deter people from joining the Apple craze.
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    I am not an Apple follower and to be honest don't see the point of the prestige they place on their products. One thing that stood out to me in this article were some of the ways they marketed their products. One was touched on Apple products can make you better, later it adjusted this by saying it gives you the tools to be the best you, but it still rubbed me the wrong way. the other way was with the Ghandi ad made reference to "daring to be different". In today's terms buying Apple products is hardly being different but even when the ad came out in 97 Apple products did not offer customization, which what I associate with being different. It offered Personal Computers with a different OS. I may be biased against them but it just seemed like odd ways to promote their products and didn't sell me on any of their products.
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    WOW, what an amazing article! I think this is a great example of a great product that does great things for its consumers. I especially appreciate the time line of Apple's ads and their competition throughout. I think it is interesting to mention how their product differentiation is slight for specific products, but that is what keeps the customers who are loyal even more loyal.
Kara Blakley

Basics Get Luxury Treatment - WSJ.com - 5 views

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    This article dives into the "product" category of the Marketing Mix and explains what Proctor & Gamble is doing to get consumers to purchase elite versions of their everyday products. In class on Thursday, I will give a detailed explanation of what retailers, such as Walmart and Target, are doing to promote and display these items in their retail stores as part of their merchandising and brand strategy.
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    I used the "capture" tool to post the article from the Wall Street Journal in case some didn't have a subscription to WSJ.com. When you click on the image, click on ORIGINAL SIZE to make the article larger and readable!
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    I find this article interesting because I do think consumers are often willing to pay a higher price for certain items, especially if they are proven to work better than other brands, even if they are "everyday products." Also, it is amazing how much hype and advertising something such as paper towels get, which also drives consumers to buy the product. I look forward to hearing exactly what retailers are doing to promote these items!
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    I completely agree with Sarah! I will pay a lot more for a product if the quality is better. I would rather buy a product that will be more expensive but last longer than have to go out all the time and get a new one. It is a time saver and just convenient. I mean when it comes to shoes, something I where everyday. I can buy a $10 pair and they wear out in a month. I would rather spend $100 on good Nike's that will last me a few years. You know what they say...you get what you pay for.
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    I thought this was really interesting as well and instead of the paper towel example I thought of trash bags. Generally I tend to buy the cheapest option possible of these type of house items given that they will do a decent job, but trash bags are a different story for me. I don't know the exact price of the trash bags I buy, but I do know they are of the "higher end"- as far as trash bags go. I think this is more of a quality issue for me because cheap trash bags have the tendency to breaking meaning they lose their purpose. Overall, I think there are some things where I would be tempted to buy a luxury basic item due to the convenience for me. I think it's also interesting to note that I have observed people with large disposable incomes buying the item on the shelf that seems most luxurious because they have the money. I think it is an interesting concept that can be utilized well for the right market.
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    One question I would have would be why P&G still push to have a higher-high end product with the duratowel. This article even mentions that the normal Bounty is considered a high end towel. Is the R&D and new advertising for the dura towel needed or would a simple focus on the normal Bounty be sufficient since it is already a high end paper towel? Its clear that they want to be the strongest presence in the higher tier and they have already released substitutes on the lower end of the spectrum so is it a smart choice to try and push the boundaries on premium paper towels or even necessary?
jkayjohn

Pilgrimage, Anyone? Green Mountain Coffee Is Opening a Keurig Store - Businessweek - 3 views

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    Green Mountain Coffee is opening a Keurig Store to hopefully get to know more about their customers and offer on site demos, special promotions, new product offerings, and unique accessories for the Keurig to customers
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    Green Mountain Coffee is opening a Keurig Store to hopefully get to know more about their customers and offer on site demos, special promotions, new product offerings, and unique accessories for the Keurig to customers
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    This article was an interesting read that opens up new ideas in regards to gathering insight into consumers. I am very curious to see how successful this store is at obtaining information from consumers. I feel like the Keurig store will receive more foot traffic from consumers who are interested in becoming users instead of those that currently have a Keurig. Those who already own it, and are satisfied will most likely continue to obtain the necessities for the appliance at their normal retailers. The way I see it, the store will be capturing more about potential clients rather than the current users. I am unsure if the cost incurred through opening the Keirig stores will be worth the information they gather.
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    This is an interesting strategy for Keurig. Like Lindsey mentioned, it'll be interesting to see how this effects the companies over all sales. Although the venture will provide fantastic PR, the question is whether he gains will outweigh the costs. I agree with Lindsey again though, it is likely that a majority if the visitors will be non-existing customers, of whom will leave with a positive experience and thus opt to buy a Keurig machine of their own. It will also be interesting to see the "accessories" that will be available for sale. These products would appeal to the existing customers, but would also highlight their need to "update" their Keurig models and thus consume more of the brands products. It would be great to see Keurig develop their "eco-friendly" line a bit further. It consists of k-cups that are recycle friendly. Ufortunately these products are quite a bit more expensive, a problem Keurig is already facing; making products more available to a larger demographic.
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    This article was fascinating to me! This is another example of how companies who used to be primarily product only or even online only want customer feedback and input. I think the idea is great - to let people use the machine to see how it works and how it can work in their everyday lives. But the location 14 miles outside Boston is a little far away I feel. I hope it is successful - already the outside looks sleek, classy, and expensive and I think the design alone with get people into the door to explore the concept. Since their goal isn't to sell, sell, sell but rather to experience and learn from consumers, I think it will work. But I do agree in this still tight economy, going to your local Walmart or Bed, Bath, and Beyond to buy the same coffee pods is realistic.
Kate King

Finish Line Launches into Mobile POS | Retail Best Practices | RIS News: Business/Techn... - 6 views

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    Finish Line is has jumped on the trend that I think will ultimately be a benefit them, mobile check out. It takes the hassle of lines out of shopping, and like I commented on a different post, the less time you spend in line the more time you spend looking around the store. More time shopping will equal more products purchased.
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    I think that Finish Line is going to benefit highly from being able to do mobile transactions, especially during the holiday season. This will be able to help them eliminating lines and making for a better overall customer experience. I think it may take some consumers a while to become accustomed to, but overall I feel like that is where technology is bringing us in the retail world and it can only help the customer experience.
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    It is clear that more retailers are moving towards mobile POS systems, and it is interesting to imagine stores without cash registers. Nonetheless, most consumers can't stand the idea of sitting in line when all they want to do is pay once they've chosen the item or items they want. And not only are there problems with long lines, but there are also problems with not being able to find someone to help you when you need it. I think retailers switching to the mobile POS system is an advantage because they can interact more with the customers, while having the ability of being a portable checkout. The convenience of the mobile POS system allows the sales rep to converse and inform the customer of the product they are looking at, and shortens the decision to buy time since the sales rep can swipe the customers card immediately once the customer decides to buy.
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    I think this is a genius idea. I hate going into finish line and waiting in line for ages because of how crowded the place always is. Giving the attendance the ability to do mobile transactions with decrease the clutter of people in the stores who can get in and out quickly and make the experience much more enjoyable!
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    I can see why Finish Line is moving in this direction because a lot of the retail industry is following suit. I think the combination of technology and good customer service is a great thing to have in the retail industry but only if the customer service is solid as well. I am a little skeptical about Finish Line doing this only because when I go into tennis shoe stores which is what Finish Line's main product is, I like to talk to someone with a lot of knowledge on the product. I like getting an expert's opinion on running shoes because they are all made so differently.
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    I feel like the next logical step for finish line would be to offer an array of customization options on a mobile application due to the trend in which people like to individualize their shoes. Prior to this, you would have to buy a personalized product directly from the manufacturer based on the options that they allowed, and were often times much costlier than they might have been otherwise. By acting as a third party on behalf of this order, Finish Line not only provides a channel to its consumers for these customization options, but gives manufacturers more exposure to this application than they had prior. Its a win-win.
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    I agree, it is important to be innovative and develop more ways of approaching the customer. However, in the end it is also important to be distinctive in other disciplines like direct customer service or outstanding product quality and design. When I went into a Finish Line store the first time in my life yesterday, I didnt really see much differences in products or design in comparison to European Stores or Foot Locker.
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    I agree with Brock. Nike has their own customization, I think now its time for the store to start doing that. I think this would improve sales because when I got my shoes I went to Nike's site so I could customize the shoes to how I wanted since it was only like $10 more to have them exactly how I wanted them.
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    This is really cool what they are doing! I'm curious as to if they had a issue with lines in their stores or if they are working on simply improving customer service.
meganbos

McDonald's Wins Over French Chef With McBaguette Sandwich - Bloomberg - 7 views

    • meganbos
       
      McDonald's has really altered there menu, like the have in other countries like Spain to really fit the local tastes. France is a great example of changing the bread and the toppings in order to appeal to more French customers- including high ranked chefs. 
    • meganbos
       
      This paragraph really highlights McDonald's motivation and adaptation strategy. They are willing to change the way they do business in order to succeed in more markets internationally. 
    • meganbos
       
      Not only are they appealing to the taste of the country but they are also responding to the economic needs of the country by meeting the French's picky tastes with a low cost option. 
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    • meganbos
       
      Even warming the bread? McDonald's has clearly done there local research and know that warm bread is popular and comparable to local favorites.
    • meganbos
       
      i'm glad they included this bit, but of course the famous baker is not going to like the fast food version of there local favorites and it probably does not compare to some local favorites but it is a good cheap alternative. 
    • Camille Sampson
       
      If using the word baguette is so terrible, would there not be public backlash from this? I would imagine that many citizens would see along the same lines of this baker which may hurt McDonald's image in France. At the same time however, many people in other regions of the world may not have the same "standards" for the word baguette, and thus McDonald's may have better feed back in other cultures that are not so familiar with french traditions.
    • meganbos
       
      McDonald's has been seen as an American option and favorite- but adapting to more consumers wants and needs in the French Market will make the brand more appealing to customers who wouldn't have originally eaten at McDonalds 
    • Camille Sampson
       
      Various flavor options/drink selections may be a safer route to appeal to local markets. By bringing in the tradition of the "baguette" McDonald's runs the risk of offending potential consumers-like the baker for example.
    • meganbos
       
      People learn that there is a lot of consistency with the McDonald's brand and that is attractive to consumers because they know that they can expect the same experience every time. 
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    Really interesting article about how our favorite fast food restaurant really responds well to the socio-cultural environment and adapts there products and presentation to win over the population- including famous chefs in this case.
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    This fits quite well in McDonald's global strategy as they do things like that in almost every country. In the Netherlnds for example, they sell the McKroket (http://www.mcdonalds.nl/sites/default/files/produits/477x355_0005_mckroket.png) and in Germany something like a "Bratwurst Burger" (Sausage Burger) ( http://www.burgerbusiness.com/wp-content/uploads/McD_Germany_Nurnburger.jpg ). Trying to adapt to local tastes might also have a downside, though, as people from that country might be disappointed by the McDonald's copy of a dish they are very proud of (e.g. it worked well in the Netherlands but didn't in Germany).
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    I think this article is really interesting because consumers do see McDonald's trying to expand into certain niches with their stores. Most McDonald's around the world have the same products, but the stores in Spain for example featured the McIberica which is similar to the McBaguette, but with a Spanish twist. I think that it is really interesting how the McBaguette is seriously taking off and am wondering if it will be featured at McDonald's in the US
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    I found this article especially interesting because I studied abroad in France last semester and I have actually tried this sandwich. I can attest to the fact that French people eat baguettes daily and you can literally see people walking down the street gnawing on a huge baguette so I can see how the McDonald's Baguette sandwich would be insulting to local bakeries. On the other hand I can see what Koffmann is saying when he says that the McDonald's sandwich seems fresher just because at local bakeries they make a bunch of sandwiches then set them out on display all day and if you go to get a sandwich later in the afternoon chances are it is not going to be extremely fresh. Which is also strange to think about...McDonald's having fresh food. I think this is a great move for McDonald's because it gives them a chance to delve into other cultures.
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    McDonald's innovation has always been astonishing not only to myself, but to the industry as a whole. It's quite interesting to take notice of its place as the clear industry leader, as other companies in its genre seemingly put as much effort into adapting to the market McDonalds has shaped to keep up with the titan as they have into development of innovative product campaigns to differentiate themselves. The introduction of the McBaguette is a clear example of this dynamic company's ability to mould themselves to cater to specific demographics in dramatically different cultural groups. Yet it still leads me to ask.. How did McDonalds become such an iconic brand in a way that Burger King, Wendy's and others did not?
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    I've been to a few international McDonalds locations, and I think what McDonalds is introducing with the "local" spin is important for the company. They need to stay fresh and appeal to French palettes. I believe the intriguing part of international McDonalds locations is the spin on our favorite, American items. I'm a shareholder in McDonalds and from a profitability standpoint, it's important to expand the French market if it's the second leader behind the United States. I wish they offered the item here - it looks good! I have an idea Prof. King - Retailing field trip to France! We need to try this!
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    McDonald's always seems to amaze me, I think it is very important to realize that any business that enters a global market needs to cater to that cultures needs and wants and McDonald's had done just that. I have been to a couple international McDonald's locations in the UK and Spain. What really stood out to me was the menu in Spain -- they offered beer and more chicken options! Although the McBaguette isn't a traditional baguette it seems that McDonald's as always caters to what the customers want.
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    What stood out in my head was the woman who was offended by the breading. Rather than taking this new food item as an insult, I think that the she should realize the efforts McDonald's makes to accommodate peoples' needs. Yes, it is not the same as homemade or some bakeries, but it is up to the French people to know the difference. McDonald's is only trying to create a low priced food that appeals to people considering the hard times that they have had.
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    Fantastic article. One important thing to remember for their new campaign however, is to remember the relevance of those commenting on their products. It's awesome that they were able to have the acceptance of a world-famous baker, but it would be even more influential if they could analyze cultural trends within France to see who really has an impact on the people. Is it this world known baker? Or, the friendly baker down the street. If they could grab a combination of positive expressions about their baguettes and other products, McDonald's could produce a positive message that would be received throughout various demographics of their target markets.
alipaigeh

Marketers Have it Wrong: Forget Engagement, Customers Want Simplicity - 3 views

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    This article has great content about how marketers can master the consumer decision process. The article was written about a year ago, but the information is still very relevant and provides helpful tips on how to be most effective in this area as a marketer.
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    Making it easier on us will make it easier on the companies. I still wonder how companies can implement this in the retail industries. Turbo tax was a good example but I am curious as to how you can make it easier in retail because retail stores may offer same types of clothing but completely different prices, quality, styles. Can't really think of anything off the top of my head, but may be a good discussion question.
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    Interesting article! As I was reading it, I was thinking to myself about what I would want more, engagement or simplicity--and I do have to agree with them that simplicity would make things easier. In the last paragraph, the author states, "don't you think it's time to stop overwhelming consumers with marketing information and cut through the clutter?" I do think some marketing information is beneficial, but as a consumer, it would be nice to "cut through the clutter" and have things stated or marketed more simply.
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    I think simplicity comes into play especially with the way we view advertisements. If a company conveys a message simply and concisely with out me having to really pay attention or sort through more information I think I am more likely to buy it. Also simple images have more of a design appeal and I think our generation is more focused on aesthetics and the way things look and feel- and simplicity plays a large role in that.
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    I agree with Lina this is a tactic that would be hard to apply with clothing retailers, but it would be useful for electronic and appliance retailers. I was just on the Best Buy website, and for each product there was a whole page of information about its capabilities and features. They gave the option to compare products which helped to "cut the clutter". This was similar to Turbo Tax; there were options to choose four different products for a side by side comparison that gave a breakdown of the difference for the features and capabilities in just a few words. Best Buy is utilizing this simplistic tactic, and I personally love it!
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    I would have to agree with Megan on this point. There is a statistic somewhere that identifies the average amount of time a person spends actually observing an ad, and in that tiny time frame, there is no way you could pull away all the information many ads are trying to convey. This is why there is a great push these days towards image messaging as opposed to textual advertisements
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    Although this article is titled, "Forget Engagement, Customers want Simplicity" I think this article provides an excellent response: http://www.forbes.com/sites/rogerdooley/2012/07/03/ikea-effect/ Although it was written a little over a year ago, I think it makes a pressing point. Simplicity is good, but too much of it and you will push the consumer away. There is a fine line between obligating the customer to be overly involved in the decision making process, but we need to remember to leverage their spending power. Consumers feel confident about their purchased because THEY chose to purchase it, not because it was pushed into their faces. Marketers need to remember the value the customer receives from the invested interest in the product. Although simplicity is an efficient and beneficial advantage, it limits personal investment into a product which intern negatively affects the value it holds in the consumers mind.
Kate King

JC Penney -- Are You Listening? - Forbes - 15 views

  • I had the opportunity to hear Jim Collins, author of the business best-seller Good to Great, speak at a conference two weeks ago.  He talked about the fact that truly great companies find, “the right 20% to change.”  Companies need to change, they just can’t change too much all at once, and they need to change the right things.
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    I think this article is a great example of how important it is for companies to be continually evolving and strengthening their brands. I currently work for Kairos Zero, which is an online marketing consulting company, and their main objective in helping their clients is specifically defining the target market. Once the target market is clearly defined for any company, they can use analytics to better analyze their main customers, how they behave, and what they are looking to experience with your product or service. In the case of this article, JC Penny was unable to evolve and develop new strategies for existing or new customers because their target market was not clearly defined, and JC Jenny's overall focus was not based on what the customer truly wanted. This directly affected their bottom line over the course of two years. Unfortunate for JC Penny, but demonstrates how important it is to cater to the customer and provide that "experience" that they are looking for.
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    I agree with Petro's thoughts that JCPenney needs to listen to the customers. Apple is a different "breed" in a way because we as consumers don't know what we want in technology until we see it - I would have never been able to think I wanted a device such as the iPod or iPad until it was introduced. Now, I can't envision my life without them! JCPenney's "suburban house-wife consumers" need practical and versatile items. JCPenney's St. John's Bay brand was a $1 billion brand and they need to capitalize on their strengths - not completely take it out. They need to insert new and exciting items such as Joe Fresh but keep the elements that make their company successful...and carefully change "the right 20%." Have you all shopped the new brands at JCPenney and/or did you like the older/familiar brands we know and associate with the company?
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    I agree with Kara, JCPenny does need to listen to what the customers want -- not what they think the customers want. There was a great point made in the article that they had gotten rid of St.Johns Bay apparel line, which is a line some of their customers were loyal and kept coming back to JCP. This article is a great example as Prof King said "the right 20% change." Unfortunately, in recent years JCP has seemed to change the wrong 20% rather than the right 20% which is why they were doing so poorly. I do not think that Ron Johnson took into account that JCP is a completely different industry over Apple. I think when changing a brand a lot of factors come in to play and as stated in the article to target toward current customers and/or new ones is a decision the company has to make.
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    Well put ladies. As Kara mentioned, Apple is a one of a kind company... for now at least. Until specialized firms like Apple can successfully replicate the ability to predict market demand, it is unnecessary to take such risks, as JCPenny did with the removal of core brands, to boost sales. Although it is encouraged for firms to think outside the box in todays modern world, in order to grasp the attention of consumers along side multiple other stimulants, it is essential that firms do so in a cautious manner. This is a perfect example of the importance of "the right 20% change". Although it is unfortunate that JCPenny had to endure this experience, it has developed a significant message/ take away for the rest of the industry to learn from. It will take a lot for JCP to revitalize its image with lost customers, but I feel their history of strong customer service and attractive product lines will encourage benefit of the doubt in consumers minds. It is great that they are trying to reach new consumer markets, but JCP must not forget about those who got them to where they are today. They need to nourish previous relationships, while continuing to cultivate seeds within the upcoming consumers(younger families, young adults) to stretch their loyalty to JCP into the future.
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    I think all four of you nailed it! The last sentence of that article states "this will involve a lot of listening," and that is exactly what JCP needs to do. They need to listen to their most important voice, the consumer -- what do they want, not "what JCP thinks the consumer should want." Overall, as we have learned, you must start with the customer and build from there--this is what JCP needs to do to start moving in the right direction.
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    This was an interesting article that clearly showed that marketing plans are not one size fits all. What works for one company may not work for another, and JCP is an excellent example of a company that needed to do more research on their customers before implementing a plan. I was very surprised how little they did to look into what the customers were looking for. The troubles JCP is now experience is a warning to other companies to take a closer look at the consumer when creating new marketing strategies.
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    As everyone has stated, JC Penney is in hot water because they have lost sight of what the main focus should be: the customer. Without focusing on the customer, how do they expect to keep them coming back? The main aspect of customer loyalty is keeping customers satisfied in order to make them want to be a continuous customer. Because JC Penney is making decisions based on what they think customers want without doing any market research to back up these decisions, it is apparent that their customer loyalty, which in turn, affects their sales is dwindling rapidly. One aspect of the article that I could relate to was when the author talked about using test brands to see customer's responses to the brand. While working at my part time job at Express clothing, we would always be sent one or two items that we didn't have and would use them as "test items" to see if customers would be interested in buying the item. If the items were purchased, we let the manufacturer know and they would determine whether they would send us the item to sell. If not, we would not sell the items in our store. I think using a test brand is a great idea for JC Penney to try. By using a select few items from different brands, they can see what is successful and what is not and plan accordingly.
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    When I saw the changes JCPenney made in person, I thought it made their company look a little bit cheaper. While it was nice to see low prices, I still liked the more "department store" feeling with cash registers in every department rather than just in the front of the store. I agree with Kara about how Apple is its own "breed" because Apple is constantly innovating their products to be more user friendly to their customers and they are constantly listening to their customers, not to mention their top of the line customer service. It is also a lot easier to listen to your consumers when you have one specialized product such as Apple with electronics. JCP sells a wider variety of things from clothing, to luggage, to home goods, to shoes. With that being said, I believe it is a lot more important for them to listen to your customers because they have a wider variety of target customers.
Kate King

PayPal points Beacon toward the future of in-store payments | RetailCustomerExperience.com - 2 views

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    Be sure you check out the two videos as well -
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    Wow! This is some really cool technology, and it sounds like it would make life convenient- but I can't help but wonder about the security of the system and how easy it would be for someone to hack into your paypal account and risk you losing everything. Also, it wasn't explained very well how stores monitor this, can you just walk out with our product in the grocery store or how does that work? It seems like although this would increase efficiency of the shopping experience there may be some pretty big issues to iron out as well.
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    All of the things that continue to evolve with technology just blows my mind! This PayPal Beacon does seem really great, efficient, and very convenient but I do have some of the same concerns that Megan pointed out. So when you go up to confirm, do they check to see what you have to make sure everything is accounted for? I think this does have great potential and would make the check out process much easier, I would just want to know a little bit more about this system.
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    Megan and Sarah nailed my same concerns. Seems like there are some loose ends that need to be cleared up but interesting concept overall. I like the idea that I could be greeted by my name when I walk into a store. I think this could help marketers learn a lot about their customers and what people buy when they come into a store. For example, it would be great if a sales employee could see when and what were the last items a customer purchased. That way the sales associate can direct the customer to products they like. PayPal Beacon could help out immensely!
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    WOW, what an invention. How perfect would this be for running errands in the most efficient way possible? There would practically be no line or no waiting. I had the same thoughts going through my mind about making sure products are accounted for, but with a product like this I feel like the experts would cover that. My concern is towards what stores will actually catch on and implement this new device. Will it primarily be retail/clothing stores, or could it be incorporated into Target, or Macy's? The PayPay Beacon seems to offer a lot in terms of convenience and I am interested to see who will catch on.
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    Technology never ceases to amaze me - how convenient for people who hate waiting in line. I agree that there is a HUGE security concern for retailers and consumers. I think there are a lot of issues that need to be addressed on all ends. It will be very interesting to see if this idea catches on or if retailers and consumers will continue shopping as they always have.
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    PayPal was a huge success online and I believe it will be a success in the stores too. I hate to wait in lines and if this shortens lines then I am all in. I agree with Sarah the security issue does worry me and needs to be tested and addressed before actual use. Once the security problems are fixed I firmly believe this with great enhance the customer experience and drive revenues in the retail industry.
Kate King

Retail Stores Are Tracking You Like Crazy ⚙ Co.Labs ⚙ code + community - 8 views

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    I like it! I want to be recognized, greeted, and assisted if I need to be. I can see where some people may feel uncomfortable but employees should be trained when to know when a person wants more help or to be left alone.
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    To me this seems like the next logical step. What as worked extremely well in online stores (I have worked for one for 5 years and we made a considerably large ratio of our revenues with cross selling on product pages), might also work in actual retail stores. It will, however, take time until customers get used to being "spied on". In my opinion they WILL get used to it, the same way everyone got used to facial recognition in facebook, data collection by Google, and customer profiling by Amazon.
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    What technology can do in this age and how retailers are using it effectively to further enhance their business ventures is simply astonishing! A possible next step to this if not in the development process already is if the consumer has the mobile app on their phone, the app will be able to tell what products the consumer is looking at and offer suggestions regarding the product. This could even be taken one step further, for example, if a customer is looking at lunch meat at the deli, the app could even suggest what types of condiments or kinds of sides for the lunch meat, and help assist the consumer in where to find these products in the stores. I agree with Raphael, consumers will have to get used to this business strategy, and look at the silver lining of how these tactics can be beneficial to themselves.
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    I think the biggest problem with this sort of tracking is many people feel entitled to a sense of privacy. Even though in our day in age this sense of privacy does not truly exist. We are tracked by what we do and what sites we visit online everyday so it makes sense that retail stores deserve the same chance, but people I believe will feel even more violated by this sort of tracking in the physical sense if they are not being told about it. I think the best way for retail stores to go about doing this is by actually making the public aware and playing on the benefits of being able to track their customers and give them the best assistance possible. They need to have a market strategy in place that can do all of that.
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    I don't know whether to be impressed or creeped out. I feel like I would want to turn my phone off any time I would go to the mall because I don't want to be bothered when I'm shopping or anything. I like to go in and get out. I am not big into shopping so I make it as fast as possible, and the fact of someone knowing what stores I am at or what I am looking at is a little weird for me. I like my privacy.
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    I agree with Lina this can upset some people. They may think their privacy has been invaded. But any business person would understand that this is just another marketing ploy.
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    This article is really showcasing specifically how almost no aspect of our lives is private anymore. I did a research report a few years ago on the Psychology of Food/Supermarkets and the technology that are utilizing to get our business. The "tracking" in the stores has been utilized by a few companies that send mobile coupons to your phone when you pass by certain items in the store. Not only that, but the technology keeps a record of your purchases and alerts you when you are around those items again. I even read a story of a father finding out his daughter was pregnant when she received Target baby advertisements/coupons in the mail from the child care department. Based on her previous purchases, Target's customer technology knew she was probably having a baby before her own parents did (or before she decided to tell them). From a business standpoint, I understand trying to utilize any technology means possible to get purchases, but the line is fuzzy between being helpful and being intrusive. Finding a balance between the two is something companies need to figure out!
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    I agree with Lina and John. I think it is very impressive that companies can use phone tracking to help out customers. In reality how much privacy do we have these days anyways? From a retailer stand point this technology can be very helpful but from a customer standpoint it can be a little creepy. What technology can do amazes me and it will be interesting to see how it effects the way retailers and consumers interact.
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    I find this kind of stuff extremely interesting. I honestly like that stores can track me like this because this means that they are more likely to send coupons and deals my way for the things I want to buy. I also think this is a great way for stores to get the perfect layout of their store by seeing where certain demographics walk around.
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    This is significant because it has implications beyond just marketing to consumers. The question is, how far should we trespass into citizens (aka customers) rights in order to improve the customers experience? This isnt JUST another marketing ploy, it's an experiment in eroding consumer privacy... and it's working. Marketers realize how little consumers are informed of their own behavior and by association they realize lengths to which they can go. But as privacy erodes, what do we really gain? Sure, it's great they can send us coupons and build our customer profile, but did companies consult the consumer and get consent to do this? Is this data collection all passively done because companies know the taboo behind privacy issues? What does this type of intrusion open up in the future? I think this is seen as simply "the way things are" because we are all desensitized to businesses (and governments) violating the privacy of information. I would like to point out that historically when masses of people in power simply accept things the way they are that's when really really bad things happen (slavery, child labor, exploitation, etc). Passive accumulation of this information seems to me complicit with those who actively accumulate this information- they're both invasions. We must critically think about how allowing such invasions actually works to shape the physical and mental landscapes of our lives, are we actually prepared to deal with the consequences? So, while it may seem like this is just another marketing ploy, we instead should see this as actually another breach of private information which will continue to shape consumer behavior.
Paige Laughlin

Nordstrom Pinterest 'Top Pinned Items' Come To Life In Stores (PHOTOS) - 8 views

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    This article details Nordstrom's attempt to promote its products in store by using the ideas and thoughts of their customer's from their Pinterest site.
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    Great way to take advantage of the omni-channel possibilities! In the short term it will be interesting to see if these marked products have an increase in sales. I think in the long run this will help enhance the overall brand image since Nordstrom is integrating their online shoppers into the brick-and-mortar facilities. Someone commented on the article and said it nicely, "Labeling your company's "Top Pinned Items" in the physical store is a clever way to give a nod of appreciation to your online followers..."
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    This is an excellent representation of omnichannel retailing at some of it's finest. As Pinterest continues to grow as a Titan in the social media and image sharing realm, Nordstrom is capitalizing on it's already strong foundation through this channel. Since many if it's consumers could probably be profiled as pinners, all they are doing is taking excellent basis for opinions and incorporating it into their layout, features products, and presence alike.
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    I think this is a GENIUS idea! So often on Pinterest, people label their clothing boards as "My Dream Closet!" By highlighting what items are pinned the most, women specifically feel like their dreams can become a reality! And so often with online shopping, we can't touch/feel/try-on the items. Now we can "pre-shop" online and actually buy the item after looking at it in a physical retail location! A normal item that once sat on the shelf can be highlighted as a "special" or "elite" item just with a simple circle logo! I love this idea - this article has actually motivated me to go to Nordstrum just so I can see the Pinterest logos on items! (And I'm also going to follow their boards online too!) A win-win for both the company and customer!
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    This is similar to what Jcrew has donein only launching their catalg on Pinterest- they are then saving lots of printing costs and providing a direct link to purchase for their customers online
Lina Goens

EBSCOhost: 'Misleading' Tesco horse meat ad banned - 5 views

    • Lina Goens
       
      Crazy to think that one company can affect the way a whole industry is viewed.  Makes you reassess the repercussions of a marketing decision and the future ones we will make in our jobs!
    • Lina Goens
       
      When the Ad said "It's about the whole food industry." I completely associate every brand of meat with making the same mistake. It makes me forget that Tesco made a mistake but rather everyone made a mistake. As a consumer, I feel misled. 
  • "implied"
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  • "our meat" and "the problem we've had".
    • Lina Goens
       
      I think that the Advertising Standards Authority made the right decision by saying that this ad "implied" all the retailers. ASA is a legal firm that I had never heard of before. They keep a close eye on ads to ensure that the rules are being followed. 
    • Lina Goens
       
      The play on words "our" and "we" seem to be pushing an ethical issue.  It is easy for one to be confused and consider the "our" and "we" as referring to the whole industry. Does this confuse you guys?
  • "unfairly denigrated
    • Lina Goens
       
      It is reasonable that the company was not accused of further "unfairly denigrated" charges however I do think they should have been punished. The legal aspect did what was just. 
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    Tesco released a questionable apology ad because they used horse meat in their products which led to some legal and ethical issues.
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    I grew up riding horses- so naturally I didn't enjoy this article- but like Lina said above, I think it is important to recgonize how one brand image can really effect the whole industry. Because Tesco made this big error other brands are hearing the effects of their mistake- and I bet Chipolte is benifiting from it based on there new ad!
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    After reading this article it made me think -- gee more and more companies that sell food need to focus on where their products come from! It is safe to say articles like these are sure to influence customers to be more conscious about where their food comes from.
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    I remember hearing about the horse meat scandal when I was in Spain, and I would have to agree with their point of how it affected everyones view of packaged meat. I am not even sure if Europe had problems with this, but the uproar from family and friends in the US made me think this was a world wide event. To piggy back off of Chipotle, I think the meat industry needs to look to better ways of improving meat quality and especially make an effort to voice these changes in product quality to consumers so there is trust again.
Camille Sampson

There's No Getting Around It: The New Chipotle Ad Is Amazing - 1 views

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    The newest Chipotle ad. A phenomenal example of Chipotles ability to highlight the unethical practices occurring within factory farming. It challenges the viewer to question the foods they eat and the corporations they support.
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    This commercial really makes you think as the consumer about the products you consume that are "farm fresh" without even giving it a second thought. It also brings up the idea that by eating at restaurants that use products that are from "factory farms" or by purchasing such products, then you are supporting their efforts in a way. This commercial makes you think twice, and it will have a lot of people thinking of Chipotle the next time they want Mexican on the go!
Thomas Holmes

Location, Location, Location: The Strategy of Place - 4 views

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    This offers a good coverage on the ideas behind Location strategy.
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    I liked that the article pointed out the need for adapting their products to the areas that they expand into. Keeping a product standardized may not always be the best option when expanding into another country/location. Adapting products to fit with the culture and lifestyles of those around is key.
Kate King

Study: Omnichannel shopping varies by category and country; most prevalent in U.S. - 4 views

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    This article completely parallels what you have been stressing in class about making omnichannel shopping as cohesive as possible. Not only does the store have an expected image to fulfill, but if the store is utilizing a virtual app in addition to an online website, the channels need to work in harmony to achieve the same desired outcome. It is evident that different consumers have different buying preferences and habits, so it is important that no matter where the consumer is deciding to buy that the channel has a cohesive image that represents the overall brand as whole.
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    Yes, I am really curious about the next years and how far this whole e-commerce trend goes. Especially in Asian countries like Japan or Korea, where technique is always an important topic and Omnichannel shopping is also on the rise. It would be interesting to see whether they are going to surpass the US and western countries at some point or whether they stick to their traditional way of shopping.
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    It will be interesting to see how stores respond to the changes in consumer needs. We talked in class about how our generation is very focused on the store experience. I think that we really enjoy stores that differentiate themselves from others in terms of service- that is why Apple and Nordstrom so frequently in class because they stand out in our minds and have made a prominent impression on us. However, I do think its important to recognize that not all in store cell phone usage is bad. Brands can really benefit from consumers being on their phones by encouraging them to check in, tweet at their friends, or engage online with the brand- for the potential in store benefit.
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    This was so interesting! I completely agree with the online-to-store relationships and why customers want to touch and feel the product. I experienced this when completing my e-commerce audit when shopping for my product (a CD). There were perks associated with purchasing online (an exclusive product not available in the store) but there were additional savings options when purchasing in the store. Mobile presence is huge and I foresee this aspect continuing to dominate the market for both brick-and-mortar and online retailers.
Sarah Jacobsma

The Rise Of Pop-Up Shops - 8 views

  • “It’s a very strong customer acquisition channel for us. It’s our one chance to get new customers and explain who we are, what we’re all about and what we can offer them.”
  • With a successful strategy in place, retailers that leverage pop-up shops can boost profits as well as brand awareness significantly
  • Pop-up stores are emerging as valuable tools that incorporate both marketing and retail into a temporary, cost-adjustable package. A retailer can choose to play it safe with a quiet, low-overhead store to garner interest, or they can execute a full-blown advertising campaign. The flexibility of the pop-up allows vendors to explore these options in scalable ways.
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    This article focuses on how retailers use pop-up shops to gain customers attention that allows retailers to tell the story of a brand to drive customer awareness and brand perception.
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    I think this article really brings up a great point about the importance of a physical presence for a brand even if it is for a limited time. It will be easier for an unknown brand to get potential customers walking by the store to come in and check it out, but online it would be much harder to lure in the potential customer to browse around. There is no such thing as an organic shopper online, as the article states. I think pop-up stores are a great way to gain brand recognition and create/strengthen brand perception.
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    It's very interesting that this is becoming a trend. I recently read an article discussing the future of retail may lie in kiosks! Pop-up stores are similar in some ways to kiosks, so maybe the trend is slightly off from what experts predicted?
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    I think this concept seems like a good idea especially for those brands that do not currently have physical stores. Being able to get a customer to interact with your product is a sure way to get them a step closer to buying is. I think it could also help drive people into the scarcity concept we covered earlier. If they know these stores are only pop ups and really like the products they may be more driven to come in store and buy more.
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    Pop up shops are becoming increasingly popular. At Vera Bradley we focused on pop up stores in resort towns that had temporary seasons. It is interesting that stores can target select locations that can deliver a high profit over cost for their temporary setting.
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    I agree with Krista. As a customer, I want to see the product so this is a great idea for brands that don't have that physical store to interact with. I won't buy something if I can't see it. I have to know it is really worth it. That is why I don't ever do online shopping except for school books.
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    I like the idea of pop-up stores because it helps a store be more versatile and makes the store be more mobile, while still having a brick and mortar store. I even read an article recently on employee relations and there was a company that had a pop-up Tiffany's store at one of their events where the entire employee base had a chance to browse through the pop-up store and got free giveaways complimentary of the company. Doing events like this get people into the store and browsing even if it is only for a company event.
Sarah Wesp

Holiday 2013: For Once Early Shoppers Get A Deal - Forbes - 5 views

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    This article explains ways retailers such as Toys-R-Us and K-Mart are using layaway, return policies, and reward programs to get consumers into their stores to ultimately make transactions. Can you think of other retailers who are implementing these types of incentives? Have any of you ever put something on layaway? Do you think these incentives/programs are beneficial for retailers?
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    I know I personally like to get any of my shopping done early that I can merely to avoid the holiday traffic and craziness that happens. At the same time, I always tend to end up with coupons or even small gift cards when I do shopping that are only valid within that 'prime' holiday shopping season. So, I think those type of programs really work because I always end up coming back to use them even though I had intentions of not shopping during that time. I also think it is interesting to look at retailers offering holiday type sales earlier and earlier in the year. I wonder what the limit will be as each retailer tries to trump the other. I also really like the extended return policy. That is EXTREMELY useful and could definitely be part of a deciding factor for me on who I shop with given that I could get similar products at each place.
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    I think for stores and shoppers can benefit from this model. Stores can increase their revenue but shoppers can shop early and have a way to afford a better holiday. It also encourages shoppers to come into the store more frequently and earlier in the season. It will be interesting to see if other stores adopt this model. I surprised Walmart does not have this as an option for some of their larger items.
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    Like Krista I wonder what the limit will be.. just keeps getting pushed back further and further. I know at J.Crew we just started implementing "holiday return policy". More than anything I think that offering such a guarantee offers a level of comfort to the customer. It makes them feel more confident about the purchase and more likely to buy it. I like the aspect of honoring online prices with store prices - very important.
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    I agree with Lina comment. The extended return policy is a ploy to get consumers in the store, make a purchase and know they have time to return it if they desire. Comfort, ease, and satisfaction for and of the customer will drive business.
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    I can't stand the thought of shopping really early for Christmas. Some of the things this article talked about really shocked me. The part about Walmart rolling out it's holiday shopping in August is not something I would find appealing. I think that takes the Christmas spirit out of Christmas completely. It's always a tradition with my mom to shop in November and December when it is acceptable to think about Christmas! I completely get the idea of budgeting, buying a few gifts here and there, but starting shopping in August? Not for me.
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    I actually really like this idea of offering deals to get people in the store early, it reduces the revenues lost with huge black friday price cuts by offering a more relaxed approach. It also would help the company make sure they don't run out of stock of a certain item. Having more customers in the store before the heavy Christmas shopping starts gives them a view on what will be popular and will help them forecast better and make sure they don't have missed sales opportunities.
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    I think extending the return policy is good because it allows for someone to use the products as gift for Christmas. I don't know what I think about having sales earlier. If they keep doing this, soon sales for Christmas are going to be six months out of the year then it's going to be all year; I mean how long is too long?
Brock Naylor

Everything You Need to Know About the Science of Store Design - 6 views

  •  
    This is another fantastic article discussing the different types of store layouts and examples of how they are used. Try and think of an example of a store that uses each different type of layout - you might need it for our discussion!
  •  
    This article was really interesting. I have never really considered how stores are set up to make sure I am viewing the post product. Stores use the layout and really consider product placement and register placement in order to make sure that customers are having the optimal experience when in store. It would be interesting to see how smaller retailers consider their stores.
Lindsey Wacnik

Five Strategies for a Successful Follow-Up Campaign - 7 views

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    This is an article that gives advice on tactics that businesses should implement in order to create a positive follow up experience with customers after a purchase has been made. After reading the article can you think of any retailers that you have noticed that use any of these tactics particularly well or poorly?
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    These different ways to follow-up with a customer are fantastic. After delivering the goods, giving ongoing customer support is crucial to keeping the customer in your fanbase and to keep purchasing products from your company. The different ways to utilize an ancient tool (email) just goes to show that no matter how old a marketing tool is, it can still be effective.
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    I think a follow up is good and keeping a presence but it should have boundaries. I get the Xbox newsletter which gives new content and games added and also contests. It keeps its name running in my head and that makes me feel more involved. If I had an e reader though, I don't think I would like follow up e-mails about support, AN e-mail would be fine just to make sure the customer is used to the product and to outline the support they offer so I have something to refer to, anything past that, besides some news on new devices they are offering, would just seem annoying to me. If it is something available for them to seek out then my mind changes though. Using social media to "build the tribe" seems like a good idea as long as it is there to be sought out not pushed upon their customers in on-going e-mails.
Kyle Werner

Five Reasons We Impulse Buy | Psychology Today - 10 views

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    This article discusses why consumers typically jump on impulse buys. Being knowledgeable of these triggers will make the buyer more aware in the future.
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    I wonder if this trend will ever change. JCP thought we were smart enough to know the difference but apparently we weren't. It seems that JCP was a little before its time by thinking in this way. Our subconscious feeds off of impulse buys because its instant gratification. Hopefully I can resist next time I'm out running errands.
  •  
    All five reasons are so true and I have probably had at least one impulse buy for every reason, but I think the biggest reason for those impulse buys are because of those discounts and sales. Who doesn't love to save money? Now that I have read this though, I am going to try to be more cautious the next time I'm out shopping (hopefully there aren't too many good sales going on).
  •  
    I thought this was really interesting especially because it came from psychology today. However, number two was not what I expected. I am usually accustomed to people brining up buyers remorse, rarely do they ever say they never regretted it. Maybe that is just with more expensive purchases and not on sale items? All of these articles on pricing have made me more aware of how stores are manipulating me into buying, and I must say most times it works!
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    Yes, I agree with Sarah. I also bought a lot of those products, which I will never use again, but I think that behavior is not as unconscious as the article may want us to believe. Most of the time I am pretty aware of the fact that I am buying stuff because I perceive it as a good deal, even though I also know I won't make too much use of it.
  •  
    This article was really great -- I impulse buy for all five reasons and a place I impulse buy from ALL the time Groupon. I agree with Angelo I buy products and sometimes when I am buying them the thought crosses my mind if I will ever use it again does not matter. I usually buy things because I think it is a good deal because lets face it we love to buy things -- especially when they are discounted or on sale!
  •  
    I also agree with the sales aspect being one of the biggest reason for impulse purchases. In two different jobs I have worked we had What we called PWPs (purchase with purchase). Once a customer made I purchase I was able to offer them another item at a discounted price. I would always say, "with your purchase today you qualify to get -said item- for 50% (or other discount) off!" Granted, this sale usually went on for three months or so, but using the word 'today' tended to convince customers they needed this item. So e customers would think out loud and reason why they should go ahead and buy it which was always interesting for me to listen to. As a sales person, I would remind them that the sale wouldn't last for long and it was a great deal so they could get it now and not have to come back hoping the sale was still going or that supplies were still available. Most of them never would have bought the item had they seen it on the shelf, but hearing the discount associated with their purchase today they felt obligated to buy, and almost always did.
  •  
    Target is my downfall for impulse buying! I always stop by the dollar bin section (especially when it is 50-70% off) then I feel like I need everything! Which is terrible because I can personally go to almost half the things I've purchased in my home that I have not used. The other day at Michaels, I witnessed a lady purchasing some scrapbook paper and after having to wait for a few customers ahead of her, she purchased a small piece of Hershey chocolate sitting in a bin for 59 cents. I couldn't help but think about the marketing and item placement that Michaels thinks about in their store layout because they would not have sold that extra item had it not been convenient and inexpensive. The placement of small items helps create more sales - especially by the cash registers - as children and people of all ages may want things they didn't think about when initially going into the store. This was a really interesting article!!!
  •  
    I think this article perfectly describes a lot of purchases made on black Friday. I have made a lot of purchasing decisions on this list. This is exactly how stores draw people into their stores by offering a huge sale but only for a limited time. Or for online shopping stores sometimes offer free shipping for a limited time in order to create impulse purchases.
  •  
    I totally agree with Emily. After working the last three Black Fridays at Express, it's amazing to see how impulsive customers are when buying items. I am definitely one of those people as well, especially in a huge sale environment. You ask yourself "will it ever be this price again?" And if the answer is no, I will probably buy it.
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