How We Buy at Xmas: Risk and Reward
How’s your Xmas promotional campaign shaping up? Is everything set with no plans for last minute tweaks? Well, I have to ask because a new study is providing a new perspective on consumer shopping habits which could impact your POP promotions and packaging.
Researchers from the Business School at Oxford University conducted a study into the decision making processes of shoppers. They believe many brands communicate ineffectively and even thwart their own sales. When your own million dollar campaign neutralizes its own effect, that would be embarrassing.
2 Main Types of Shoppers to Target
The study found that buyers come in 2 types: risk aversive and reward seekers. And when messages were aligned properly to these 2 types it purportedly can increase sales by 186%. If it’s true, that is quite a boost in sales conversion.
The risk-minded group of shoppers were more affected by prevention-focused messages, while the other group was promotion-oriented, looking for the rewards of the purchase. This group was more apt to switch brands or choose more expensive products. The risk-aversive shoppers were more interested in product uses and how products help them avoid losses or dangers. How the product helped them deal with loss and dangers was important to them.
Which Benefits to Promote and How?
So I guess it could all be summed up in Risk vs Reward. Of course, some products such as carbon monoxide detectors is more related to the risk side regardless of who is buying it. But would mentioning the health benefits of chocolate bars be worth mentioning to consumers who are focused on the taste rush of the chocolate? Some shoppers would be interested in the preventive health benefits.
Certainly playing up the dangers of carbon monoxide, the silent killer, may get the risk aversive shopper to buy the higher priced premium devices. The reward-focused consumer wouldn’t value that benefit as much.
The reward seeking shopper would be more attracted to novelty and to their own impulses. Trying impulse based approaches to risk aversive shoppers can still be done, but still has to focus on the benefits they seek. Sounds like a tougher task.
The Oxford researchers suggest avoiding coupons, price discounts, or other promotions as they may undermine the “celebatory mindset” of these consumers. They say that it’s vital to appreciate the “fit” of the advertisement to the consumer mindset.
I wonder if creating two separate POP displays for each type of shopper would work? Or would they neutralize each other? I suspect subtle changes in the copy and graphics might be sufficient to get the message across.
Cosmetics can be promoted with an emphasis on anti-aging for the ‘prevention’ consumers but with ‘look your best’ messages for the ‘promotion’ oriented consumers. The same product can be made to appeal to different consumers who have two different types of mindset through appropriate messaging, explains Professor Puccinelli.
See the article here: http://phys.org/news/2014-10-christmas.html
That requires some sophisticated branding and copywriting to capture both buyers simultaneously.
Will that be paper or plastic? Plastics are enjoying a resurgence in packaging and paper too. From coroflot to shrinkwrap sleeves, plastic offers a lot of benefits from security and tamper resistance to an excellent substrate surface for full colour printing.