Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Management article
-
Reference no. SMR47202
Authors: - Various
Published by: MIT Sloan School of Management
Published in: "MIT Sloan Management Review", 2006
Length: 3 pages

Abstract

Consumers are a fickle lot. Case in point: It''s long been known that a consumer will be unhappy if he or she realizes that someone else got a better deal. So marketers tread very carefully when considering a promotion that targets one set of consumers for fear of alienating another. However, according to three researchers, there are times when such a targeted promotion can work to the marketer''s benefit. Under certain conditions, non-targeted consumers are actually attracted to products for which a targeted group is reaping the benefits of a promotion. The authors tested how undergraduate and graduate students reacted to promotions that were not meant for them. Through a series of five scenarios presented to different groups of students, the three researchers determined several conditions under which a targeted promotion made a product attractive to a non-targeted audience. The main conditions are that the targeted audience consists of individuals whom others consider to be experts and that the non-targeted audience is uncertain about a product''s quality. So the average consumer will defer to the expert group to determine which product is higher quality. This also means that a product''s quality has to be more important to the average buyer than is his or her individual taste.

About

Abstract

Consumers are a fickle lot. Case in point: It''s long been known that a consumer will be unhappy if he or she realizes that someone else got a better deal. So marketers tread very carefully when considering a promotion that targets one set of consumers for fear of alienating another. However, according to three researchers, there are times when such a targeted promotion can work to the marketer''s benefit. Under certain conditions, non-targeted consumers are actually attracted to products for which a targeted group is reaping the benefits of a promotion. The authors tested how undergraduate and graduate students reacted to promotions that were not meant for them. Through a series of five scenarios presented to different groups of students, the three researchers determined several conditions under which a targeted promotion made a product attractive to a non-targeted audience. The main conditions are that the targeted audience consists of individuals whom others consider to be experts and that the non-targeted audience is uncertain about a product''s quality. So the average consumer will defer to the expert group to determine which product is higher quality. This also means that a product''s quality has to be more important to the average buyer than is his or her individual taste.

Related