
Competition watchdog in the UK warns of negative AI consequences
An increase in fake reviews and false information, as well as flouting of consumer protection laws, are all possible results of the AI boom.
RETAIL STRATEGY
By our News Team | 2023
Placing goods that are not on promotion next to ones that are being discounted can have both positive and negative effects.
Researchers from four US universities – Connecticut, Texas A&M, Colorado at Boulder and Florida – have published a new Journal of Marketing article that examines whether price promotions on some products differentially impact demand for other products, depending on their relative locations within a display.
The study, forthcoming in the American Marketing Association’s peer-reviewed publication, is titled ‘The Negative and Positive Consequences of Placing Products Next to Promoted Products’.
Photo by Needpix.com
Consumers select from a variety of competing products in multi-product displays. Some products are discounted, while others in close proximity are regularly priced.
The key question is: Do price promotions on some products differentially impact demand for other products, depending on their relative locations within a display? This new study concludes that the answer is ‘yes’.
The researchers say that when the proximal items (i.e., those placed nearby) and distal items (i.e., those placed farther) are strong substitutes for the promoted item, we find that a price promotion decreases the sales of proximal products relative to distal products. This is known as a ‘negative proximity effect’.
However, when the proximal and distal items are weak substitutes for the promoted item, the promoted product increases the sales of proximal products relative to distal products. This is known as a ‘positive proximity effect’.
“In this case, the proximal product benefits from the increased attention by virtue of being close to the promoted product,” the researchers explain.
The research team found evidence for these sales patterns across eight studies.
Opportunities for marketing managers
Understanding how attention spills over to proximal products creates several opportunities for marketing managers.
Managers can take advantage of this to direct attention to full-priced higher margin brands. Taking this further, positive proximity effects may also occur for non-substitutes (e.g., refrigerated yogurt and refrigerated desserts).
You can read more about the study here.
An increase in fake reviews and false information, as well as flouting of consumer protection laws, are all possible results of the AI boom.
As tougher times bite, only 10% of CMOs believe their marketing investments will enable them to emerge better off than their competitors.
On-the-Go stores will extend the brand and be located on TotalEnergies service station forecourts to cater to motorists and busy consumers.
The social media platform’s ad revenue is up 25.8% year-on-year and is forecast to total US$71-billion for 2024.
Alliance offers a simple, fast and convenient experience for consumers to buy groceries online, with orders being delivered within an hour.
Consumer must feel that buying the product will somehow elevate them so that they sit more squarely alongside the influencer they follow.
What are the key things that people consider before buying online? Researchers find that the computer mouse holds important clues.
Bon Marché has typically confined itself to the affluent suburbs of Zimbabwe’s capital. Now it has opened in Marondera in Mashonaland East,
As rugby fans liken the SA national team’s alternative kit to the Checkers Sixty60 e-commerce platform, the brand seizes the opportunity.
Sports apparel company renews an old partnership with Newcastle United as it further cements its presence in top soccer competitions.
Interactive Advertising Bureau study finds internet advertising has reached a new high of 34% of the overall SA advertising market.
Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.
Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.
Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.