Close
 

Data digest: what is the perception of value?

  • News
  • August 13, 2015
  • Elly Strang
Data digest: what is the perception of value?

It will be a shock to some that lobster was once so abundant that it was eaten by the poor and even used as cat food.

But an effective and subtle marketing strategy can change everything.

Once lobster was touted as an “exotic dish” by enterprising railway companies and served on trains, it began a journey towards becoming a high-class dish.


Now days, lobster is a hot commodity and is usually the most expensive item on the menu.

By emphasising how a product or service is provided, like serving lobster in a fine dining carriage far away from the ocean, businesses can change the perceived value of the product through its story.

This also occurred with diamonds. Before 1870, diamonds were very rare, but then diamond pipes in South Africa were discovered.

Some were worried their value would decrease, so a clever cartel called De Beers took control of the influx of diamonds and created the perception that they were still rare.

The cartel also paid movie producers to have scenes where a diamond was featured, such as a man gifting one to a woman.

This led to Marilyn Monroe’s ‘diamonds are a girl’s best friend’ performance.

This, paired with an ad campaign declaring that ‘a diamond is forever’, created huge exposure and demand for the product.

As of last year, 75 percent of American brides last year wore a diamond engagement ring at an average of US$4000.

Going against the grain

Ancient grains aren’t a newly discovered commodity, as people have eaten them for many centuries and yet sales are surging for them.

Consumers associate the ancient grains with health and simplicity, which is a great attribute to be linked to, as being health-conscious is increasingly trendy.

An article published in USA Today polled 30,000 consumers and found younger people are more concerned about everything from food ingredients to organic foods than previous generations.

Almost half (41 percent) of Generation Z, which is individuals under 20 years old, would be willing to pay more for healthier products.

A third (32 percent) of Millennials were the same, while only 21 percent of baby boomers would pay more.

In terms of ancient grains, nutrtionist Cynthia Harriman says if they’re mentioned on a product label, you can increase the price by 50 to 300 percent.

An example of this is the New Zealand made ‘Chia’ drink, which is made up of the ancient grain, chia seeds.

It uses an interesting backstory to market its products as a ‘real food’ endurance sports drink.

According to the company’s website, chia seeds helped the Tarahumara Indians of Northern and Central Mexico in their long distance runs through the desert.

 It retails for around $6 a pop, so it isn’t in the low-ball price range.

It is now stocked in more than 400 cafés and speciality food stores nationwide, with Chia orders having doubled over the past six months.

About 10,000 bottles of the jelly-like drink are produced per week.

You’re drinking what you’re thinking

According to Vouchercloud’s infographic, the top reasons why customers pay more for the same products are:

  • The products are easier to buy
  • The product arrives more quickly
  • The product brings the buyer prestige
  • Lower cost of ownership
  • Friendly customer service

Despite the quality of the product itself, consumers will rate products as higher quality if they come from a company they’ve perceived to have higher brand value.

 Research has also found that “charm prices” increase sales by about 24 percent when compared to nearby, rounded prices.


Some sense can be derived from these customer choices and perceptions, but a lot of the time, they can’t even be explained by the customers themselves.

Image Centre Group executive director and New Zealand ad guru Mike Hutcheson says, “You’re drinking what you’re thinking”, as often this is the case, even if it’s subconsciously.

A study involving wines actually proved this was true, as it found more German wine than French wine was bought when German music was played in store.

When the customers were asked why they chose the German wine over the French wine, none of them mentioned the music as a deciding factor.

Infographics provided by Vouchercloud

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Outgoing Spark CEO Simon Moutter talks transformation, diversity and leaving a legacy beyond just metrics

  • News
  • July 11, 2019
  • Elly Strang
Outgoing Spark CEO Simon Moutter talks transformation, diversity and leaving a legacy beyond just metrics

Simon Moutter has just wrapped up a seven-year tenure at telecommunications company Spark. Under his rein, the changes the company has gone through are nothing short of radical, from its name (Telecom to Spark), to its operating model (traditional to agile), to its culture (publicly called out to inclusive) to its structure (one monopoly brand to many). Here, Moutter has a candid chat about his journey as CEO, the company's push to be a more diverse and inclusive workplace and how one of his biggest lessons learned was he couldn’t solve a cultural issue with processes and strategy.

Read more
 
 

Sephora on Queen Street announced for July opening

  • News
  • July 11, 2019
  • Courtney Devereux
Sephora on Queen Street announced for July opening

Three years after launching online into New Zealand in 2016, French beauty chain Sephora is ready to commit to bricks and mortar. Now, the beauty store is set to open its three level flagship on Queen Street come July 20.

Read more
 
 

Kiwi manufacturing cements itself on home shores with latest acquisition

  • News
  • July 11, 2019
  • Courtney Devereux
Kiwi manufacturing cements itself on home shores with latest acquisition

New Zealand based manufacturing has seen success as Cactus Outdoor, a Kiwi owned manufacturing brand, has acquired Albion Clothing Limited. The two manufacture companies will combine to create some of the most used and robust clothing supplied in New Zealand.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Regional rollercoaster
What does retail look like in 2019 for ...
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

New Zealand’s first Lego store announced

  • News
  • July 10, 2019
  • The Register team
New Zealand’s first Lego store announced

New Zealand has many stores which stock Lego, but it’s now been announced that New Zealand’s first Lego certified store will open in Auckland later this year.

Read more
 
 

Christchurch curtain retailer Millers Home clocks up 95 years in business

  • News
  • July 10, 2019
  • Sarah Dunn
Christchurch curtain retailer Millers Home clocks up 95 years in business

Family-owned and operated Christchurch retailer Millers Home has been providing curtains, blinds and accessories to South Island customers since 1924. We asked Jill Miller what their secret is.

Read more
 

Pre to re-loved: Little Outfitters takes big steps towards a circular approach

  • News
  • July 9, 2019
  • Courtney Devereux
Pre to re-loved: Little Outfitters takes big steps towards a circular approach

It’s not news that consumers are becoming more conscious in the way they shop. Second hand market places are having a moment as people opt out of fast fashion more and more. Now, Little Outfitters, the latest pre-loved marketplace has launched to target the fastest fashion users of all; growing children.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}