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Coupon Organizing 101
Posted: 12/22/09 10:41AM
Filed Under:
Save Your Money, Main, Personal Finance , Consumer News, Retail
If you clip coupons you know that organizing them is half the battle, as GI Joe would say. How do you file them? Where do you keep them? How do you remember to bring them to the store?
HST Makes Cars Cheaper: Dealers
Posted: 12/18/09 5:15PM
Filed Under:
Main, Consumer News, Retail
A $30,000 car could be hundreds of dollars cheaper in Ontario and B.C. once a single, harmonized sales tax replaces separate federal and provincial sales taxes, car dealers say.
Lululemon Scolded for Linking Clothing Line to Olympics
Posted: 12/18/09 5:03PM
Filed Under:
Main, Consumer News, Retail
Organizers of the 2010 Olympics have publicly scolded Vancouver retailer Lululemon Athletica for selling a special edition of clothing that celebrates a "cool sporting event" taking place in British Columbia.
Gift Cards' Hit #1 on Christmas List
Posted: 12/18/09 3:53PM
Filed Under:
Main, Consumer News, Retail
Canadians are more likely to buy gift cards for Christmas than anything else this year, according to a Scotiabank study.
Recessionistas, Rejoice! Jimmy Choo Comes to H&M
Posted: 11/16/09 10:41AM
Filed Under:
Main, Consumer News, Retail
When top-tier clothiers align with mass-market retailers, there's a potential bonanza for everyone. Designers are happy with their increased exposure, the stores like the higher-end customers, and consumers like getting luxury labels at pocketbook-friendly prices.
The Secret Agenda of Coupon Codes
Posted: 08/21/09 3:01PM
Filed Under:
Save Your Money, Main, Consumer News, Personal Finance, Retail
When you get to the check-out stage of an online purchase and see the box waiting there for a coupon code, what do you do? If you're like most people these days, you're hitting Google and relying on the kindness of strangers to get you free shipping or some percentage off and typing in codes until one works.
Can't get that jingle out of your head? Then all that R&D money is paying off! Companies are increasingly using "neuromarketing" to sell their products, which gets past the fact that people sometimes give the answer they "think" is right rather than saying how they truly feel. Scientists attach electrodes to subjects' brains to test their physiological responses to stimuli. It's a little like giving a focus group truth serum. Spearheading the groundbreaking research is Swedish globetrotter Martin Lindstrom, whose new book 'Buyology' describes his findings. He shared his knowledge of emerging marketing tricks with WalletPop.
Sneaky Marketing Tricks
Emerging Marketing Tricks
Can't get that jingle out of your head? Then all that R&D money is paying off! Companies are increasingly using "neuromarketing" to sell their products, which gets past the fact that people sometimes give the answer they "think" is right rather than saying how they truly feel. Scientists attach electrodes to subjects' brains to test their physiological responses to stimuli. It's a little like giving a focus group truth serum. Spearheading the groundbreaking research is Swedish globetrotter Martin Lindstrom, whose new book 'Buyology' describes his findings. He shared his knowledge of emerging marketing tricks with WalletPop.
Martin Lindstrom
Ding, Dong, Time to Buy!
Neuromarketing owes a deep debt to Pavlov, who showed how people can be conditioned to respond in a certain way to a stimulus. The gold standard these days is to have some distinctive "bell sound" that makes customers jump up and hand over their money. We will be subjected to repeated sounds as they try to create one of these iconic sounds. Lindstrom did a study in his home country of Sweden on the sound that the most popular ice cream truck makes. When people heard the sound on TV, they grabbed their money and ran out in the street to buy from the truck.
The antidote? Don't keep cash available for impulse purchases.
AP
The Big Basket Theory
Lindstrom says the first lesson companies have learned, particularly supermarkets, is that shoppers will get cautious about spending when their carts are full. How to get people to buy more? Just give them bigger shopping baskets. He says that Whole Foods has found people spending 30 more with a larger shopping cart. You'll also find that a lot of smaller stores, like drugstores, now offer wheeled carts rather than hand-carry baskets, in order to trick people into buying more.
The antidote? Only buy what you can carry.
Getty Images
Hungry Promotions
It's no coincidence that people buy more before lunch and dinner when they are hungry -- and this is not just about food. "We buy more computers, more videos, more of everything, just before we are going to eat," he says. Now that companies understand more about this hunger trigger, which makes people 200 more sensitive to sound and smell stimuli Lindstrom says they will start timing promotions to the hours before meals in retail stores, on TV and radio and even on the Web. This type of campaign works much better than even celebrity endorsements, a high-price gimmick that advertisers have been relying on for ages.
The antidote? Don't shop or watch TV right before a meal.
jupiterimages
Bring in the Band
Using sound to sell products used to be about playing soothing background music in stores, but not so anymore. Retailers are learning that people respond strongly to sound stimuli, so they will be playing specific kinds of music to push products. Lindstrom conducted a test in a wine store. When the store played Italian music, people bought more Italian wine. When they played French music, people bought more French wine. "When you asked people why afterward, they had no memory of music playing, they just said, "oh, I felt like an Italian wine," he says.
The antidote? If you don't want to be tricked, pay close attention to your surroundings.
jupiterimages
Gee, You Smell Terrific
Smell stimuli is just as potent on shoppers, so in the future, retailers are going to go way beyond just potpourri. "The sense of smell is incredibly powerful, the sense really seduces us a lot," says Lindstrom, who has done many tests of smells being pumped into stores. In one hardware store, the smell of fresh cut grass made customers think the staff was more intelligent. In an appliance store, he pumped in the smell of an apple pie and the sales of ovens and fridges went up 23.
The antidote? Beware if you walk into a store and are hit with an odor.
AP
Show Me the Pasta
Putting sound and smell together works even better, says Lindstrom, and that's why he says you'll see a lot more live food demonstrations, particularly in super markets. You can already see this at chains like Wegman's where chefs cook food like pasta out in the open. "The senses work much better together than apart," he says. "What we learned from our study is that 2 + 2 equals 9. If you see and hear certain things, you will taste the feeling if those messages have been sent in the right way."
The antidote? Stick to the quiet canned food aisles and you may be able to avoid temptation.
Wegmans
Virtual Taste Test
We're still a long way from smell-o-vision, but Lindstrom says TV and the Web can get across taste pretty easily and marketers are becoming more sophisticated at the task. "If you hear the sizzle and water in the background, you can activate the sense of smell," he says. Advertisers are learning to create ads with these sounds, so look for more burbling Web ads in the future.
The antidote? If you don't want to be enticed, keep your computer on mute.
PictureQuest
A Non-Generic Response
As more consumers turn to store brands in this tough economy, marketers are having a tough time creating brand loyalty and positive brand associations. People are just more interested in price. Some companies will resort to cutting prices, but Lindstrom cautions clients against this. "You are discounting your brand image," he warns. "Companies will start to use other tricks," he says, "Like combining with other brands, like buy a Coke product and you get a free snack product." That way, you get a reward for buying the brand name.
The antidote? To make sure you're getting a good deal, compare the prices of all the items you are buying, and make sure you actually want the bonus item.
AP
Luxury Mini-Me's
Luxury retailers are suffering deeply in this bad economy, as even high-earners are cutting back. Stores like Saks and Bloomingdale's are offering deep discounts for the first time, up to 70 off in some departments. One way that these brands will recover, says Lindstrom, is to create products with a lower price point. Affordable luxury is still luxury, though, so the way to cut the cost of items is to make them smaller. Can't afford a Coach bag? Maybe buy a change purse. "They will also be creating bags with more practical purposes so that now people can justify the purchase," he says.
The antidote? If you can't afford it, then don't buy it.
AP
CP Business Headlines
- Greek debt crisis expected to continue looming over stock markets this week
- Consumers shouldn't get stuck with bill in TV tax dispute: consumers' association
- Prepared Canadian companies could see growth under new parity reality
- GM's South Korean unit recalling nearly 60,000 vehicles over possible safety problems
- Construction company in Guelph, Ont. laying off 80 workers
- Obama presses Congress, says financial reform needed to protect consumers, keep banks healthy
- Fed Chairman Bernanke tries to makes case for Fed to retain role as watchdog of smaller banks
- British Airways crew launches 3-day strike, forcing airline to cancel thousands of flights
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