Kumar, V. and Swaminathan, Srinivasan (2012) ' studied the impact of coupons on brand sale and how that impact decays over the life of the coupon. The authors use an econometric model to demonstrate the coupon effect in terms of equivalent price reduction, account for coupon effect over time, allow inference of coupon effects when retailers decide to double or triple the coupon value and provide both self-coupon and cross-coupon elasticities at different levels of aggregation. Results indicate that the effect of doubling the face value of coupon result in more than a proportionate increase in elasticity and both self and cross- coupon elasticities are much smaller in magnitude than the average self-cross price elasticity. Laroche, Michel et.al. (2013) ' studied the effect of coupons on consumer's brand categorisation and choice process using fast-food restaurants in China. Results suggest that there are both direct and cross advertising effects i.e., the presence of a coupon for a focal brand has an impact on consumer's attitudes and intentions towards that brand. Lewis, Michel (2014) developed an approach for …show more content…
Therefore, brand managers now have to consider how to react when their brand is talked about by consumers (Campbell et al. 2011). Muñiz and Jensen Schau (2007) argue CGA is relevant to companies because it provides proof of consumer perceptions of brands and their feelings towards the brand. They also argue that CGA is important because they are prime examples of persuasive marketing messages from brand loyalists. Moreover, CGA is only going to increase in frequency. Marketers have underestimated the possible consequences of interactive marketing on the Internet by not considering the influence consumers gain from CGA (Deighton and Kornfeld as cited in Pehlivan, Sarican, and Berthon
The average American spends $151 a week on groceries; adding up to $604 a month which is taken out of the hard earned pay check of the household. It is not a mystery why shoppers would want to use coupons to attempt to bring down this cost. Efficient shoppers understand the value of spending the time to meticulously plan each trip to the grocery store to fit in as many coupons as possible. Joanie Demer quit her job in order to spend her time maximizing the benefits from couponing. When couponing, the best way to save is doubling up the coupons to utilize the voucher to its fullest extent; extreme couponers will hoard several copies of a newspaper or magazine in order to stock up on the coupons so they can double up and have enough for the overstock they need to hold over until the next sale on that product. Jamie VanSicker gathered 185 copies of the Sunday paper in order to save big on the deals at her local grocery store, sadly to find out the paper didn’t have any coupons to clip. Religiously sticking to couponing may not be the healthiest choice, there are not many coupons are available for meat or produce, but the saving are worth the products given up. Couponing can create a few problems but overall takes the stress off the women when they know they have saved usually at least $15 off their total bill.
The company’s pricing strategy is concentrated on anticipating and quickly responding to the changes on customers’ preferences to enhance a better product-line. By doing this so, American Eagle is always doing research about the changes in the economy and customers preferences, dictated by fashion and season. Its goal in this context is to get the correct merchandise due to it must be ordered well in advance of the selling season (p.9). The price of its clothes and accessories varies depending on the item and/or the clothing line that ranges from affordable to a bit expensive. This company also provides coupons. discount codes, and deals that lets the company to attract more customers. For instance, at the end of seasons, when American Eagle
Heller, L. (2001). Discount Contribution Keeps Expansion on Target. DSN Retailing Today. V 40 i23, p. 20.
Although the relationship was stable regarding gender, income, education level and different scores on the Cognitive dimension, consumer with high and low scores on the Emotion dimension will have significantly different Brand Related Rewards scores. Although the partially constrained model did not confirmed a moderation effect of Emotion on the BehaviorBRR relationship metric invariance was confirmed. Since an Emotion-Cognitive and Emotion-Behavior interplay are predicted by theorists (Clore et al., 1987), this empirical result is a support to such
A customer’s response falls in two categories, judgment and feelings. Consumers are constantly making judgments about a brand. These judgments fall into four categories: quality, credibility, consideration, and superiority (Keller, 2001). Customers judge a brand based on its actual and perceived quality, and customers judge credibility using the perception of the company’s expertise, trustworthiness, and likability. To what extent is the brand seen as “competent, innovative, and a market leader,” “dependable and sensitive to the interest of customers,” and “fun, interesting, and worth spending time with” (Keller,
Due to the ever-increasing number of brands, and the way people associate products with their lives, several authors have discussed the controversy of manipulation of advertisements, the way Daniel Harris always thought that consumers are irrational, manufacturers are controlling them in his book “Cute, Quaint, Hungry and Romantic”
Brand selection: the advertisements, messages and discounts offered consumers to try something new with lower price for a variety of product, restaurant menu, branded handbag and so on.
He has worked with numerous of the Fortune Global 500 companies as a brand building expert. He has truly mastered consumers’ deepest desires by exploit hot spots in the human brains to compel them to purchase blindly and willingly. As a result, Martin has successfully help launched new products and brands. Martin created this book during the worst economic crisis since the Great Depression. Martin’s main purpose of this book was not getting us to stop purchasing, as that is nearly impossible. “The purpose is to educate and empower you to make smarter, sounder, more informed decisions about what we’re buying and why” (Lindstorm 8). By exposing marketing companies tricks and tactics, consumers would be equipped to battle the war on impulse purchasing in a time of
According to McConnell, Brue, and Flynn (2015), elasticity is an important concept that helps answer many economic and business questions (p. 135). It increases the understanding of consumer markets by explaining to some degree how changes in price and income affect supply and demand. In addition, elasticity allows supply and demand to be analyzed with greater accuracy. Businesses use elasticity to decide how to price products and services which helps them to be more competitive. The information that is gathered about how consumers respond to prices can also help to reduce uncertainty and risk. Price elasticity measures how sensitive a thing is in relation to price. The following is a brief examination of price elasticity of supply and demand.
Helgeson, James G., and Eric G. Gorger. "The Price Weapon: Developments In U.S. Predatory Pricing Law." Journal Of Business-To-Business Marketing 10.2 (2003): 3. Business Source Complete. Web. 15 Apr. 2014.
Pricing is an important aspect of every business. Chief Financial Officer’s (CFO) use pricing to create financial projections, establish a break-even point, and calculate profit and loss margins (Power Point, 2005). It is the only element in the marketing mix that produces revenue. Price is also one of the most flexible elements of the marketing mix as it can be changed very quickly. This is usually done to beat competitor prices in an attempt to fix the product’s market value position very low (Anderson & Bailey, 1998). After all, high prices make it difficult to become the market share leader. The leading US retailer, Wal-Mart, is an expert at low product pricing as evident in 2004 with $250 billion dollars in sales to their 138 million weekly shoppers. However, they are also responsible for reducing prices so low that it drives specialty stores out of business. This is the effect Wal-mart has had on many toy stores and has almost closed the doors of the famous toy store Toys “R” Us Inc.
It 's no secret that traditional marketing practices have declined and consumers are now more skeptical than ever. Brands have had to find ways of connecting with potential customers in a more authentic way.
Several facts are changing in today’s marketing communications. More companies adopt the new concept of integrated marketing communications (IMC) to convey a consistent message about their brand and products. Hence, IMC has played a powerful role and developed into a useful strategy for company to reach more customers and build good customer relationships. According to Herstein et al. (2008), IMC is one of a successful strategy that coordinates and integrates all of marketing communication tools to efficiently and economically influence between an organization and its existing and potential customers. Moreover, marketers can combine IMC tools (advertising, sale promotion, personal selling, direct marketing and public relations) rather than separate practices to create values and avoid potential conflicts (Duncan & Everett, 1993). In fast food industry, fast food chains integrate advertising, sale promotion, sponsorship, packaging and Internet to promote their products as well as build brand image (Sperber, 2003; Story & French, 2004; Morrison, 2010). Advertising is most used form of communication and the most frequently utilized medium due to it easily contact the target market, especially on television advertising (Story & French, 2004; Case, 2007). In addition, simple toys and products are typically used by fast food chains in children’s meal to attract children and adolescents.
Everything now a day is marketed, from the water we drink, the food we eat and the clothes we wear. Marketing not only establishes brand recognitio...
Nevertheless, one of the most important constants among all of us, regardless of our differences, is that, above all, we are buyers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services, and even ideas. As consumers, we play an essential role in the health of the economy; local, national and international. The purchase decision we make affect the requirement for basic raw materials, for transportation, for production, for banking; they affect the employment of employees and the growth of resources, the successfulness of some industries and the failure of others. In order to be successful in any business and specifically in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers; what they are want, what they are think, how they are work, how they are spend their leisure time. They have to find out the personal and group influences that affect consumer decisions and how these decisions are made. In these days of ever-widening media choices, they need to not only identify their target audiences, but they have to know where and how to reach