The Sales Velocity Effect on Retailing

In an increasingly crowded marketplace, retailers need innovative ways of promoting products to their consumers. E-commerce retailers have utilized to great effect lists of top ranked products to promote product sales; the higher the sales rank, the more likely consumers buy that product. This influence to buy, based on observing what others bought is known as observational learning (OL). Prior OL research assumed that OL arises from observing a static outcome, such as the current sales rank of a product. However, prior research on intertemporal choice showed that people prefer outcomes with increasing trends over stable or decreasing trends. This suggests that observing an increasing sales rank, denoted as sales velocity, would have a positive effect on purchase likelihood. We conducted three studies to test the sales velocity effect. Results show that sales velocity has a significant effect on likelihood of purchases, reversing even participant preferences for a product with a higher sales rank. This effect is consistent across four broad products tested. For researchers, by joining the two previously disparate branches of research in OL and intertemporal choice, we addressed a gap in OL research which previously ignored the velocity dimension of OL. For retailers, the study demonstrated the impact of the sales velocity metric on making choices, and thus they could use sales velocity data as a cost-effective marketing tool for specific products.     

Consumer perceptions of monetary and non-monetary introductory promotions for new products

Abstract

Little research has examined how consumers respond to sales promotions in new product categories. This article fills this gap by integrating research on reference prices with literature on sales promotions for new product categories. Existing research suggests that consumers respond more favourably to non-monetary promotions (e.g. extra free promotions) than monetary promotions (e.g. price discounts) because non-monetary promotions are framed as segregated gains rather than reduced losses. However, both kinds of promotions are widely used in practice, suggesting the importance of other contributory factors. With a consumer experiment on a national panel of consumers, this research demonstrates that extra free product promotions are most preferred for existing products, and introductory low-price promotions are preferred for innovative products. The moderating effect of a product's innovativeness is explained via a new relationship in the marketing literature, whereby perceived risk mediates the relationship between perceived innovativeness and a consumer's tendency to stockpile.     

基于网络的消费者社会互动及管理研究

消费者的购买决策受到其他消费者意见和行为的影响,现代技术的发展极大地提升了消费者社会互动作为市场力的重要性,同时信息技术的发展也为企业促进这两种社会互动创造了越来越多的机会。通过介绍口碑传播和观察模仿的内涵,分析其对销售的不同影响及产品生命周期对消费者社会互动的影响,认为企业应在产品的投入期关注消费者社会互动,应在网站上提供现有消费者的选择信息,应慎重提供消费者发布评语的平台,应区分不同等级的顾客;应根据不同的产品市场状况,制定不同的反应策略,正确应对第三方的产品评论,以此管理消费者的社会互动。     

Cooling off and backing out: Understanding consumer decisions to rescind a product purchase

Consumers sometimes have the right to exit a sales contract during what is known as a cooling-off period. Sales process research generally does not address cases when consumers withdraw from sales contracts during this period. Since securing product sales involves substantial marketing and sales costs, a need exists to better understand not only consumer rescission decisions and their legal context but also the managerial implications of the cooling-off period. This exploratory qualitative study examines purchase rescinding and develops a conceptual model using timeshare as the context. Results suggest that rescission relates to a mismatch between product features and personal circumstances, post-purchase concerns about product value, reassessment of financial capability, reflections on sales presentations, and cautionary influences of reference groups.     

Circular or angular? How nostalgia affects product shape preference

As an important marketing strategy, nostalgia marketing is widely used by enterprises to attract consumers and influence their decision-making. Besides, feelings of nostalgia can be easily elicited in people's daily life and exert a great impact on them. Though the effect of nostalgia on consumer behavior has been extensively studied, whether and how nostalgia affects consumer preference for products with certain visual designs remain underexplored. Our research extends this domain by focusing on product shape preference as a new downstream consequence of nostalgia. Five studies (including one field experiment) demonstrate that nostalgia can increase consumer preference for circular-shaped products, with social connectedness as the underlying driver. Moreover, the indirect effect of nostalgia on circular shape preference via social connectedness is moderated by consumers' current social connections, such that the effect holds true for consumers with a low number of current social connections but is eliminated for those with a high number of current social connections. Together, marketers seeking to increase the sales of circular-shaped products may use nostalgic elements or cues in marketing campaigns.     

The effect of product touch information and sale proneness on consumers' responses to price discounts

Since price discounts are costly and can negatively affect consumers' perceptions of quality, it is crucial to identify the factors that make them effective in stimulating purchase behavior. Drawing on cue utilization theory, we examine price discount effectiveness in affecting consumers' reliance on the sale cue based on the provided product touch information as an intrinsic cue and individual consumer differences in sale proneness. Two experimental studies indicate that price discount information, product touch information, and sale proneness interact to determine consumers' responses. Perceived quality is the underlying mechanism behind the observed effects. For nonsale-prone consumers, product touch information favorably influences responses to large price discounts by addressing product quality concerns and enhancing purchase confidence, but has no effect for regularly priced or low discounted products. For sale-prone consumers, product touch information is not effective in increasing their responses regardless of the discount size. A qualitative study provides support for these results and highlights the role of perceived quality and purchase confidence. The research contributes to behavioral pricing, cue utilization theory, and sensory marketing and suggests that marketing managers should provide consumers with product touch information when implementing high discounts for products for which prepurchase touch is important.     

See How Much We’ve Sold Already! Effects of Displaying Sales and Stock Level Information on Consumers’ Online Product Choices

Many online retailers make sales and stock level information live available to customers on their websites and offline retailers also increasingly can display this information. Yet it is unclear how consumers perceive such information and how it influences consumer choice. High sales and low stock may both signal popularity and quality, which will stimulate further sales. We however argue that sales level is more diagnostic than stock level as a cue and hence the effect of sales level on consumer choice will be stronger than that of stock level. Also, when both cues are available, the effect of sales level is expected to dominate. In addition, brand familiarity is expected to moderate these effects. These hypotheses are tested in two scenario-based online experiments in which participants choose between competing products for which information about either sales levels, stock levels, or both sales and stock levels is displayed. Results support the hypotheses and also show that sales level is indeed a more diagnostic cue than stock level. Analyses further reveal how perceptions of the popularity and quality of a product mediate the effects of sales and stock levels on consumer choice. The findings imply that retailers can successfully use sales and stock level information to induce quality perceptions and influence consumer choices.     

乳制品营销策略相关文献综述

通过对国内外乳制品营销策略相关的文献进行了梳理和归纳,从产品、价格、渠道、促销、网络营销以及其他方面进行归纳总结。可以看到,国内外文献大多选择了案例研究、实证分析,多数结合当前世界发展趋势、营销趋势进行讨论,充分考虑到了全球化、网络化、关系、跨位、绿色营销等因素。从国内外文献研究的成果来看,乳制品营销策略强调以消费者为中心、更加关注消费者的心理、行为、习惯等因素,通过对文献的整理归纳,为未来的研究提供了理论依据、参考借鉴、方向指引。     

User Reviews Variance,Critic Reviews Variance,and Product Sales: An Exploration of Customer Breadth and Depth Effects

Online user reviews constitute a new element of the marketing communication mix that can significantly affect product sales. A general consensus holds that positive user reviews valence benefits product sales, yet the effect of variance is less intuitive and current findings are mixed. We propose that user reviews variance actually constitutes a double-edged sword that can either hurt or help product sales, depending on the variance of critic reviews and other quality signals. Three complementary studies in multiple industries (movies, digital cameras, and books) with multiple methods (secondary data analysis and behavioral experiment) reveal three key insights in this setting. First, after recognizing a high variance in user reviews, many potential buyers may simply exclude the focal product from their consideration sets for fear that it does not match their needs and preferences, which is termed the customer breadth effect. Second, high user reviews variance, in combination with high critic reviews variance, can elicit a sense of uniqueness and thus enhance purchase intentions of some consumers, which is termed the customer depth effect. Third, quality signals (e.g., product cost and product extension) can strengthen the positive customer depth effect. The overall effects of user reviews variance, therefore, can be negative, insignificant, or even positive. These findings have important theoretical and managerial implications.     

Genuine brands or high quality counterfeits: An investigation of luxury consumption in China

This study examines the effects of different marketing and manufacturing factors on the perceived quality gap and willingness to pay (WTP) for genuine luxury brands. Using the survey data of 786 Chinese consumers, the results show that three marketing factors (product innovation, price promotion, and sales environment) and two manufacturing factors (production in country of brand origin and difficulty in producing the products) all indirectly influence WTP through a perceived quality gap between originals and counterfeits. These effects differ significantly among consumers with different counterfeit and genuine brand purchasing experiences. For consumers with counterfeit purchasing experience, it is important to emphasize the manufacturing factors in the marketing strategies; however, for consumers who only buy genuine brands, marketing factors play a more important role. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

论包装的视觉营销功能与个性化

包装作为产品整体概念的一个组成部分,是品牌理念、产品特性、消费心理的综合反映,它直接影响到消费者的购买欲,是建立产品与消费者亲和力的有力手段。包装作为视觉营销策略的重要组成部分,具有视觉传达功能、市场定位功能、传递文化功能。包装的设计应具有个性化,符合、满足消费者的心理,有利于促进商品的销售。     

Toward Understanding Persuasion Expressions: The Activation of Attitudes

In response to sales representatives’ closing expressions, consumers’ stored attitudes are activated spontaneously from memory and influence product evaluations. Studies 1a and 1b examined the levels of favorability associated with several persuasive expressions. Study 2 then examined whether a sales representative's use of a more (Authority) or a less (Scarcity) favorable persuasive expression would affect consumers’ subsequent product and advertisement evaluations. The expressions were found to work differently depending upon two moderator variables: Need for Cognition and argument quality. The effect of Scarcity heightened subsequent product evaluation as Need for Cognition decreased, whereas the effect of Authority heightened subsequent product evaluation as Need for Cognition increased. The Scarcity statement did not affect product evaluations given strong or weak message claims in the advertisement, whereas the Authority statement produced more favorable product evaluations given strong versus weak messages claims. Cognitive response analyses and mediation patterns also indicated that the two persuasive expressions were distinct based upon individuals’ Need for Cognition. Implications for both sales representatives and consumers are drawn from these findings.     

Substitution or Promotion? The Impact of Price Discounts on Cross-Channel Sales of Digital Movies

Technology is transforming the marketing function in many ways, and this transformation is particularly apparent for information goods such as movies where digital technologies provide marketers with new distribution channels, which in turn create new opportunities for cross-channel effects. However, these digital channels also provide researchers with new opportunities to measure micro-level customer behavior to understand the impact of cross-channel effects in real-world settings.In this paper, we study cross-channel effects between movies sold in digital purchase (commonly known as Electronic Sell Through or EST) and digital rental (commonly known as Video-On-Demand or VOD) markets. We do this using a unique sales dataset from a major digital movie retailer provided by a major movie studio. Our analysis takes advantage of a 14-week field experiment that allows us to measure the impact of price discounts on own- and cross-channel sales. We use this experiment to estimate own and cross price elasticities, whether price discounts cannibalize future sales, and most importantly whether price discounts in one channel affect sales for the same product in a presumably competing channel.Our analysis indicates that digital movie consumers are highly sensitive to price promotions. However, we also find that, contrary to expectations, price promotions in a digital sales channel for a movie do not seem to cannibalize digital rentals. Indeed, our results suggest that, if anything, price promotions for digital movie sales can increase digital rentals. We explore a variety of explanations for this counterintuitive result, including the possibility that the ease of information transmission online through third-party websites, blogs, and online discussion areas may create information spillovers such that price discounts in one channel may increase product awareness in other competing sales channels. From a managerial perspective, our results suggest that cross-channel cannibalization can be reduced or even reversed in the presence of information spillovers, and that there are many new opportunities for marketers to directly measure these cross-channel effects using experimental data from online platforms.     

Exploiting the installed base using cross-merchandising and category destination programs

We investigate two ways to increase sales and customer loyalty by taking advantage of a store's installed base of current customers. We propose a classification of products into two types. Products of Type 1 are products for which consumers have a loyalty to a specific retailer and, as far as possible, always shop at that retailer for these products. The other products (Type 2) are not associated with any retailer and are bought at whichever retailer consumers happen to shop when they plan or remember to buy the product. With this in mind, we test the potential of two marketing tools to help retailers increase their share of sales of the Type 2 segment. Using a category destination program we show that one can successfully transform Type 2 into Type 1 products. Using cross-merchandising promotions, we show that one can increase the sales of Type 2 products thereby gaining a larger share of discretionary purchases than what one would receive from a straight random allocation. Both series of tests yielded significant increases in sales and profits and were deemed successful by the retailers who implemented them.     

Integrated Marketing Communications and Market Planning

Abstract

This article links the integrated marketing communications (IMC) concept to the planning process in marketing. Following the current conceptualizations as a combination of various marketing communications tools, IMC strategy is applied to an established strategic market planning model named the Boston Consulting Group (BCG)'s growth-share matrix. Advertising, public relations, sales promotion, and direct marketing are defined as crucial elements for the core scheme. Alternative strategies for brands in different stages are identified from the product portfolio analysis. The view may also be thought of as the ongoing process of building and maintaining brand equity for consumers in the long-term period. Conceptual discussions are expected to help marketers think more strategically as they plan IMC programs for their products or services.     

基于消费者心理模型的营销策略分析

心理模型对消费者的购买决策影响巨大。基于心理模型下的模糊营销,应依据消费者所处场合,匹配性宣传产品,适当性投放产品以建立和顺应模糊心理模型;隐喻心理模型则是依据消费者的心理去塑造商品形象,明确企业的核心竞争力和核心创意,并实践企业的核心创意;潜意识心理模型是依据消费者潜意识的趋同效应、环境效应和促销等购买动因来制定营销策略,从而有利于企业根据不同的心理模型制定相应的营销策略,在激烈的市场竞争中顺应消费者心理,促进消费者做出积极的购买决策。     

Can good marketing carry a bad product? Evidence from the motion picture industry

We examine the relative roles of marketing actions and product quality in determining commercial success. Using the motion picture context, in which product quality is difficult for consumers to anticipate and information on product success is available for different points in time, we model the effects of studio actions and movie quality on a movie’s sales during different phases of its theatrical run. For a sample of 331 recent motion pictures, structural equation modeling demonstrates that studio actions primarily influence early box office results, whereas movie quality influences both short- and long-term theatrical outcomes. The core results are robust across moderating conditions. We identify two data segments with follow-up latent class regressions and explore the degree of studio actions needed to “save” movies of varying quality. We finally offer some implications for research and management.     

The Moderating Influence of Country of Origin Information Seeking on Homophily and Product Satisfaction

ABSTRACT

The purpose of the research was to investigate when consumers concurrently select a range of retail products online, what percentage of products need country of origin (COO) identification. Moreover, will COO information seeking positively moderate the relationship between homophily and product satisfaction. Participants were recruited through an online survey platform (MTurk). The results appear to be the first to quantify the number of retail products within a basket that need some form of country of origin (COO) identification. Electronic word of mouth (eWOM, e-reviews) has become an important factor in the purchasing process for consumers. When COO information is unavailable, consumers will search online reviews to determine the COO of products. When reading the e-reviews, consumers will also evaluate the reviewer and the similarities they share. If they are not similar (low in homophily) their satisfaction with the product is low. By contrast, when homophily is high, product satisfaction is high. Specifically, as homophily increases, an individuals' need for COO information seeking has a positive moderating effect on their perceived product satisfaction. Online retailers promoting their products could benefit from sales increases due to their ability to provide COO information at a low cost, which in turn, provides ease, peace of mind and purchase satisfaction for consumers.     

Shopping and virtual communities for consumers with physical disabilities

The purpose of this exploratory study was to investigate the use of virtual communities for clothing shopping by consumers with physical disabilities, and to explore the role that these communities play in their clothing shopping experiences. An international virtual community created for consumers with disabilities was identified using keywords through search engine directories. The content of discussion forums was identified and analysed with the assistance of the qualitative research software tool, QSR NVivo 9.0. The content was coded to allow categories and themes to emerge. Thirty‐one categories, which were dispersed between three major themes (self, product, market), emerged from data analysis. In the discussions, various communication channels and social media sites were mentioned, and users enhanced their discussion topics with a photograph of a product or an Internet link, providing further assistance to peers. Consumers also shared personal information, such as life experiences. The results of this study may provide significant implications to retailers in their efforts to target these consumers, in various areas including product development, branding, marketing, customer relationship and managerial strategies. There may also be relevance for development of other consumer goods and sales to other target markets. Using online discussion forums to probe for product development and brand ideas has not been widely addressed, nor has the information search process for people with disabilities. The use of QSR NVivo software is new for a study such as this and should be explored in greater depth for future research with this type of data.     

Signaling Quality in an E-Commerce Environment

Abstract

“Quality” is a unique concern in food marketing with powerful strategic connotations and consumer emotion. Consequently, retailers, with the help of food processors, have built their industry around communications with consumers which compare the value of one product over another using key quality attributes as carriers of that value. This involves both simple and complex signaling techniques that consumers have grown accustom to. With the onset of online food sales, many of these signaling techniques are less effective. This research evaluates food quality communication signals, presenting findings from three related E-Grocery studies, linked through a meta analysis.