4) Sense of Fairness – It’s Not What You Would Guess
Don’t confuse opportunity costs with “out of pocket expenses.” Your customer doesn’t and is watching you to see how you promote your business.
(a) Research conducted in two cities by telephone sampling: Scenario 1. A shortage has developed for a certain popular make of automobile and customers must now wait two months for delivery. The dealer had been selling the cars at list price. Now the dealer prices the cars at $200 over list. Is this acceptable or unfair?
Scenario 2: A shortage has developed for a certain popular make of automobile and customers must now wait two months for delivery. The dealer has been selling the cars at $200 below list price. Now the dealer sells this model at list price. Is this acceptable or unfair?
(b) Same sampling as above. Scenario 3: A company is making a small profit. It is located in a city experiencing a recession with substantial unemployment but no inflation. The company decides to decrease wages and salaries this year by 7%. Acceptable or unfair?
Scenario 4: A company is making a small profit. It is located in a city experiencing a recession with substantial unemployment and inflation of 12%. The company decides to increase salaries by only 5% this year. Acceptable or unfair?
In both pairs of scenarios the situation presented is identical to the previous situation. However the consumer reacts very differently to each option. Consumers do NOT want to perceive money coming out of their pockets. Be certain to frame every promotion in such a way that the consumer is CLEARLY saving and assume no mathematical ability on the part of the consumer.
5) Influence and The Real Network
I’ve made a great deal of fuss about persuading not just the individual about their self/best interest, but to highlight the interest of the larger group, the community, or for God; whatever the individual most identifies with.
For some bizarre reason you rarely see promotions or sales presentations with this critical aspect. Best guess is that marketers and sales people have never been taught how important this is. Now they’ll have to listen up…check it out…
Turn the Page and Continue (and I just added one extra technique that I like a lot)