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retail

What a Product’s Weight Conveys to Consumers

  • Marketing Science Institute

A product’s shape, packaging or logo contributes to consumer understanding and reactions to that product, previous research has found. But what impression does the perceived weight of a product convey and how can this be used for advertising and marketing purposes? Researchers Priya Raghubir, Lu Yang and Dengfeng Yan looked into this and discovered that consumers use a stability heuristic for weight judgements. Shorter, broader objects are judged to be heavier and thus are considered more stable. And when it comes to food items, weight also plays on such things as calorie assessment.

How Payment Mode Affects Consumer Behavior

  • Marketing Science Institute

As part of MSI’s Expert Curation series, Priya Raghubir, Professor of Marketing, New York University, and an MSI academic fellow, discusses a series of studies that focus on how modes of payment affect consumer purchase behavior. Concerns over Covid-19 and the need to social distance have accelerated the use of cashless and touchless forms of payment. This paper outlines the latest research on associations between these and other payment options and consumer spending habits, such as spending likelihood, spending amount, spending patterns, brand loyalty and customer satisfaction.

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NYCU: How to Master the Shopping Revolution

The Shopping Revolution – What’s Next (ARF SHOPPERxSCIENCE, March 2 & 3) At this event, experts presented new research to help effectively maneuver the changing shopping landscape in order to keep your business and brand successful. Here are highlights from four presentations. Full reports are on the ARF website: https://thearf.org/category/articles/the-shopping-revolution-whats-next/ The “New Normal” — Customer-Centered Omni-Channel Retailing (Barbara E. Kahn, Patty and Jay H. Baker Professor of Marketing, The Wharton School, MSI). This presentation suggested to focus on these strategies: 1) Cost and value 2) Ease or frictionless 3) Trust 4) Experience To succeed, at least two of these are needed. Customer-centered retail is key.   Tracking the Return to Normal: Consumers’ Comfort Returning to Retail Spaces (Joanna Piacenza, Senior Editor, Morning Consult). This presentation discussed the “Tracking the Return to Normal” study, which is designed to provide insight into Americans’ state of comfort and their readiness to return to pre-pandemic habits and activities. Morning Consult began tracking COVID-19 concerns in January of last year and continues to update data every week. Interactive graphs allow readers to better understand the shifts over time as the pandemic has progressed.   PepsiCo Took Notice of COVID Impact on Online Shopping Behaviors (Drew Ingram, Director, Retail Media, PepsiCo). PepsiCo used retailer first party data to effectively target personalized messages and used four-week look back windows to modify campaigns instead of more traditional attribution and MMM models. Source: The ARF. (2021, March 2,3).  SHOPPERxSCIENCE. The ARF.  

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NYCU: Three Data Partnerships to Jumpstart in 2021

LiveRamp discusses the benefits of forming data partnerships.  The early advantages for companies that have done well during the pandemic and recession are quickly eroding. To compete moving forward, retailers must be empathetic to the full gamut of consumers they serve. Increasingly, this involves developing a data strategy centered on partnerships, both internal and external, that help you better understand where consumers are and how best to connect with them. Why data partnerships are vital in retail: data partnerships were once the purview of large corporations with the resources to build their own infrastructure for managing these relationships, each of which comes with unique technical, security, and privacy requirements. In my experience, companies enter into data partnerships for a variety of reasons from expanding their understanding of their customers to creating comarketing programs to building media businesses. Retailers looking to partner with CPG brands to deliver relevant, personalized content to consumers is a common example of the latter. What is interesting about the pandemic is that data partnership conversations have become the norm as people see the value and ability to start small in building a stronger, fuller, more complete understanding of consumers. While it’s not possible — or strategic — to enter into a data partnership with every third-party that your brand works with, perhaps you can start by connecting with your internal ecommerce team to gain deeper insight into how your customers are interacting with you and buying your products. This could lead you to shift your content strategy or run custom promotions with your suppliers to capture wallet share while meeting your consumer needs. Three ways to get started with data partnerships: Here are three ways to think about data partnerships that can build or increase your market advantage in 2021: Collect: Does anyone at your company have a single, complete view of the customer? Even at some of the largest retailers, not every team has access to the data they need. Think about the many ways first-party data is collected at your company and inquire as to how your team can gain access to this data to drive relevancy and increase media efficiency A quick win here would be the ability to access more data than you had before — browse data in addition to transactions, for example. The most valuable data you have is collected directly from your customers, so the more you use it, the more you’re able to better serve their needs. Discover three ways to get started with data partnerships by reading this article. Source: LiveRamp. Three Data Partnerships to Jumpstart in 2021.  

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The Shopping Revolution — What’s Next? (Event Summary)

  • SHOPPERxSCIENCE

At SHOPPERxSCIENCE 2021, experts presented a framework to use to create a competitive retail environment. Attendees heard the latest research and insights to effectively maneuver the changing shopping landscape. Enjoy this brief recap of the event – including the latest research and insights to keep your business and brand successful. Key takeaways, the full event video, and presentations are available for ARF members: If you are interested in becoming a corporate member, please contact New-Member-Info@thearf.org. LOGIN TO ACCESS

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NYCU: Why Marketers Should Prepare for Post-Pandemic Scenarios

This excerpt from an article on the explosion in omnichannel marketing urges marketers to think ahead.   Brands need to be more agile than ever, as consumer behavior keeps shifting amid the pandemic.   There’s been a surge in activity on digital platforms, as the pandemic has prompted brands to develop new resources that will likely endure well into the future. Luxury car maker Infiniti, for example, developed an app that lets would-be buyers take test drives from their homes. Target’s digital platform now lets the retail giant’s consumers choose among delivery, curbside pick-up or in-store pickup. The app also shows buyers how they can minimize their time in the store based on their shopping lists.   “We are going to see an explosion in terms of omnichannel strategies, and different permutations of online and physical,” says Mauro Guillén, Zandman Professor of International Management at The Wharton School and author of 2030: How Today’s Biggest Trends Will Collide and Change the Future of Everything.  He adds, “Many stores have been forced to establish an online presence that they didn’t have before. We’ve seen big growth in e-commerce when the seller and the buyer are within 15 miles of each other. Those small stores are not going to shut down their online presence. Brands will have to adapt.”   Still, while digital may continue to dominate, brands can find surprising opportunities in traditional channels, such as out-of-home and direct mail, says Brian Rafferty, global director of business analytics and insights at Siegel+Gale, a brand strategy firm. “Digital channels are massively overloaded,” Rafferty says. “How do you cut through when everybody is doing exactly the same thing? Make sure you know what touchpoints really matter and where you should invest, and make sure your messages are effective. Now is a good moment to gather that data so that you’re ready to execute in 2021.”   Regardless of how the next few months unfold, brands should stay focused on their core identity and purpose. “For brands that are winning today, it’s about retention and building relationships that are more long-term,” Sakal says. “You have to anticipate a reality where, at one extreme, people will snap exactly back to what they used to do. It needs to be rooted in something substantive.”  Source: Kapelke, C. (2020, October 30). Marketers Should Start to Prepare for Post-Pandemic Scenarios Now. ANA Magazine   

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NYCU: Is Brand Loyalty Changing?

Yes and No. The article provides different points of view. More research is needed. A July report from communications firm Ketchum found that 45% of American shoppers have altered their brand preference amid the rapid changes in the world. A month later, research from McKinsey put that number at 75%. “For certain products and brands, COVID-19 caused supply-chain disruptions,” says the McKinsey report. “And when consumers couldn’t find their preferred product at their preferred retailer, they changed their shopping behavior: Many consumers have tried a different brand or shopped at a different retailer during the crisis. “We expect these changes will shape consumers’ habits even beyond the effects of COVID-19,” says McKinsey. “In…the U.S., upward of 60% of consumers who tried a new behavior plan to stick with its post-crisis.” Ketchum’s study agreed, saying that 62% of people who have changed their brand preference will make that a permanent change before the pandemic is over. “We're seeing massive consumer behavior shifts that are likely to persist,” says Mary Elizabeth Germaine, partner and managing director at Ketchum Analytics. Robert Passikoff, founder and president of Brand Keys, a brand loyalty and customer engagement consulting firm, disagrees. Some shoppers might be buying other brands out of necessity, he says, but they’ll return to the names they know as soon as they have the opportunity. “People are looking for particular brands, and they’re loyal to particular brands,” he says. “The COVID-affected categories are easy to see, but it’s not an issue of ‘I was loyal before March and now that it’s September, I’m not loyal anymore.’ “Shoppers do not want to visit multiple stores to cherry-pick the good deals on branded goods,” says Doug Bowman, professor of marketing at Emory University. “So it’s easy to imagine a situation where a shopper may be more likely to just buy the store’s private label brand to get a good price in a category rather than visit a second store.” Source: Morris, C. (2020, October 21). Brand loyalty is changing due to the pandemic. Fortune.    

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NYCU: In Brief -- Brick-Mortar vs. Ecommerce Holiday Forecast; Brands and Corporate Responsibility

Brick-and-Mortar vs. Ecommerce Holiday Forecast “This growth rate is the lowest since 2008, when the holiday season was in the throes of the financial crisis,” said Andrew Lipsman, eMarketer principal analyst at Insider Intelligence.  “Nevertheless, it’s a positive story to achieve growth at all, given the current economic backdrop,” he said. But the diverging storylines between retail channels couldn’t be starker. Brick-and-mortar sales—which will account for 81.2% of total US holiday retail—are expected to decline 4.7% this holiday season, while ecommerce will jump 35.8%. Source: eMarketer Editors (2020, October 26). How Has the Pandemic Affected Our Brick-and-Mortar Holiday Forecast? eMarketer _______________________________________________________________________ Brands and Corporate Responsibility Morning Consult conducted a survey Sept. 11-13, 2020, among 2,200 nationally representative U.S. adults, to deep-dive on Americans' changing expectations around brands’ engagement with politics, the issues consumers care most about as they relate to corporate social responsibility, political activism and the role brands should play as the political environment rapidly changes. Source: Morning Consult (October 2020).Great Expectations: The Evolving Role of Companies ina Post-Election World. Morning Consult. 

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