Stores Magazine - November 2007 - (Page 18) trEnDS Cherry Pickers Not the Pits Contrary to popular opinion, cherry pickers are not the profit-killing, discount-only shoppers that industry watchers have long perceived them to be. Researchers at Yale University and the University at Buffalo/State University of New York found that “extreme cherry pickers” – grocery shoppers who buy only on sale — make up only 1.2 percent of shoppers, not 10 percent to 15 percent as the industry has long assumed. In addition, cherry pickers reduce profits by less than 1 percent on average. Debabrata Talukdar, associate professor of marketing at SUNY-Buffalo, describes the findings as “great for the consumer.” He says that understanding the true characteristics of cherry pickers may spark more price competition “to attract new shoppers and retain existing ones.” TV Items Change Channels Admit it. Every time you see the Magic Bullet infomercial, you’re “this” close to ordering. What stops you? Even in this era of Internet shopping, consumers still want to see and touch items in person before they pull the purchase trigger. A new franchise hopes to cash in on the “As Seen on TV” market by creating a retail setting where customers can see the item up close and even “try before they buy.” The first two “As Seen on TV” stores opened in the Phoenix area last month and offer a dynamic mix of the innovative TV-marketed products. The contemporary store design is the brainchild of Sandstrom On TV company. “As Seen on TV” product sales are booming, reaching $182 billion last year, according to Sandstrom data. Executives believe the franchise has the potential to grow to 150 stores across the country, and have begun selling franchises in 35 states. “As Seen on TV” product guru/pitchman Billy Mays is the company’s vice president of franchise production. If anyone can convince investors to take the franchise plunge, it’s Mays: He’ll use the Hercules Hook to lure ’em in, but whether they’ll be able to (Oxi) clean up on sales remains to be seen. 18 STORES / NOVEMBER 2007 It’s a Matter of Trust Which approach works best for advertisers – the soft sell or the hard sell? Turns out it doesn’t much matter. Consumers still place their highest level of trust in other consumers, according to a recent global Nielsen Internet survey. Still, while recommendations from a trusted source are most important, traditional advertising channels continue to retain the public’s trust. Ads in newspapers rank second worldwide among all media categories; TV, magazine and radio ads also ranked above 50 percent. What Forms of Advertising Do You Trust Most? Recommendations from consumers Newspapers Consumer opinions posted online Brand websites Television Magazines Radio Brand sponsorships Email I signed up for Ads before movies Search engine ads Online banner ads Text ads on mobile phones 78% 63% 61% 60% 56% 56% 54% 49% 49% 38% 34% 26% 18% Source: Nielsen Online Global Consumer Study, April 2007 WWW.STORES.ORG http://WWW.STORES.ORG
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