More Options at the Store Means Consumers Pay More for Quality

January 6, 2012

in Decision Making

For decades, economists have taught that competition between product brands leads to lower prices in the marketplace because consumers generally buy the lowest-priced items. However, researchers from three business schools recently noticed this assumption fell flat when it came to luxury items, like wine and chocolate. Despite an ever-increasing array of brands consumers can choose from at stores, prices on luxury items continue to climb with each new product that comes to market. Researchers say that’s because in the presence of so many options, consumer buying habits change from getting the best price to finding the best quality–and they’re willing to pay more than they should for it.
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Ads Targeting Groups are More Memorable, Study Shows

January 5, 2012

in Group Influences

A study published in the Journal of Consumer Research reveals that advertisements that remind consumers of the groups they belong to are remembered better than more general advertisements. Coauthors Kathryn R. Mercurio and Mark Forehand explored the way people process advertisements that evoke the groups with which they identify. “A key determinant of how much consumers remember from an ad is the connection between the ad content and the consumer’s own self-concept.”
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Signs are Still a Powerful Marketing Tool, Study Says

January 3, 2012

A new study from the University of Cincinnati suggests that one of the oldest marketing tools in history, the humble sign, is still one of the most powerful. Furthermore, other marketing efforts may be of limited benefit if consumers can’t find the business because of inadequate signage.

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One-Upping the Joneses May Be as Crucial as Keeping Up with Them, Study Claims

December 20, 2011

Even before Lucky Strikes proved to the advertising world that celebrity endorsements sell products, marketers understood that stars and the wealthy influence consumers. You’d probably be a little surprised to see iPads fly off the shelves after the janitor at the mall was spotted using one, though. According to a new study published in the Journal of Consumer Research, however, that’s exactly what might happen.

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Online Comments Influence Consumers’ Decision-Making Process

December 15, 2011

Recent research published in the Journal of Consumer Research indicates that online comments do impact buyers’ decisions about which products to purchase. However, the factors that have the most influence are the number of comments and the reader’s approach to reading those comments.

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Customers Touching Lowers Sales [Study]

December 13, 2011

The psychology of touching has been studied throughout the years, but only recently in a conventional retailing sense. This holiday, it is suggested from a recent study to avoid letting customers physically touch each other. According to Bret A.S. Martin from the Queensland University of Technology “For managers, a stranger’s touch in the store means the money walks out of the store.”

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Branded Apps Are Powerful Advertising Tools, According to Study

December 11, 2011

New research published in the Journal of Interactive Marketing indicates that what many marketers have suspected for a while is true: The humble mobile app may be one of the most effective marketing tools ever created. According to the study, apps generate consumer interest in products and generate positive feelings toward their sponsors.

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People May Not Read Nutrition Labels as Carefully as They Think, Study Suggests

December 8, 2011

Based on a study that appeared in the Journal of the American Dietetic Association, researchers from the University of Minnesota have concluded that people estimate that they read nutrition labels much more thoroughly than they really do. In addition, the researchers concluded that people looked at nutrition information more often and for longer periods of time when the information was located centrally, as opposed to being located towards the edge of their visual fields.

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Perceived Goal Achievement Influences Consumers’ Response to Variety [Study]

December 5, 2011

A new study conducted by researchers at the University of Maryland and published in the Journal of Consumer Research indicates that limiting variety may motivate consumers who feel as though they are making progress toward a goal. By contrast, people who believe they have achieved limited success are more motivated by a wider variety of products.

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Effectiveness of Ads Using Attractive Models is Driven by Context [Study]

September 14, 2011

Sticking a sexy model into an advertisement has been the tried and true method for selling goods and services, but recent research published in the Journal of Consumer Research indicates that the success of this strategy greatly depends on the situation. The actual set-up of the advertising seems to be a huge factor in the success.

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