NewsMakers
Promotional games at retail stores increase consumer spending
Games of chance are potential goldmines for both brick-and-mortar stores and online retailers.
Shoppers who win retail discounts through scratch-off tickets or other games of chance are more likely to make a purchase, and spend more money, than customers offered standard discounts that apply to everyone, according to a new study led by the University of Connecticut.
Games of chance are potential goldmines for both brick-and-mortar stores and online retailers, said Stefan J. Hock, UConn assistant professor of marketing and the lead author of the study in the Journal of Consumer Research.
“Winning a discount affects perceptions of luck, which leads to positive store attitude, which, in turn, increases shoppers’ likelihood of making a purchase and their overall spending,” said Hock.
Surprisingly, even when the discount won from a promotional game is smaller than a traditional discount — say only 10% versus 20% — researchers still saw the same phenomenon.
Hock, together with professors Rajesh Bagchi of Virginia Tech University and Thomas M. Anderson of the University of Colorado, compared won discounts with straight discounts in terms of conversion rates (the likelihood of making a purchase) and overall spending, across seven studies in 2017 and 2018.
The largest study looked at the behavior of 1,073 customers of a mid-sized, U.S.-based e-commerce company that specializes in interactive video tutorial. All others examined the behavior of college students and ranged in size from about 200 to 500.
The researchers found that discounts obtained from promotional games always generated greater likelihood of purchase and overall spending, ranging from a 42% to 213% increase.
Of note, shoppers who believe in luck got a confidence boost from doing well in a game of chance and this ‘lucky day’ phenomenon seemed to give them greater buying confidence. That was particularly true when the shopper was looking for a self-indulgent item, versus a necessity.
The pleasure derived from scoring a discount at a retailer seems to have a lingering impact, with the shopper developing a good association with the retailer. In one study, Hock and his colleagues found shoppers said they would be willing to go farther to buy an identical item (in this case a candle) from the store that had offered the promotion, rather than selecting a closer competitor.
Retailers Should Use Games Strategically
In the U.S., discounts and promotions account for more than 25% of total sales of consumer goods.
But some large companies, including Forever 21 and J. Crew, frequently employ games of chance, with customers taking part in a game with uncertain outcome. In fact, it was a scratch card presented to Hock at a prominent clothing store that triggered his interest in the study.
The increase in sales was driven by more consumers buying rather than a smaller group of consumers each buying more. Because games of chance increase the likelihood that customers will buy, stores benefit from a larger customer base, which grows the retailers’ long-term profitability.
“What we’ve learned is that this type of promotion can be cost effective for the merchant if the ‘chance’ discount is the same or even less as what a retailer would offer for a straight discount,” Hock said.
Managers can use these games strategically as a cost-efficient way to enhance store loyalty and build brand equity. However, Hock cautioned, the tactic can be overused.
“My word of caution, though, is that it should be used sporadically. If I ‘win’ a discount every time I shop, there’s no perception of luck or chance,” Hock said. “Since many brick-and-mortar stores are struggling, this may be a small piece of the puzzle that helps them generate higher sales.”
NewsMakers
The look and feel of your neighborhood may affect your sleep
Those living in neighborhoods rated as having a stronger sense of safety tended to sleep longer, and that this rating appeared to be shaped by the streetscape.
Your neighborhood’s “streetscape”—the physical environment of your street—is something that you have probably never consciously thought about, despite seeing it every day. But what if the streetscape was affecting you on a subconscious level and disrupting your sleep?
This intriguing question is posed by the findings of a study led by Professor Daisuke Matsushita of the Graduate School of Human Life and Ecology at Osaka Metropolitan University. The research team used AI to analyze more than 200,000 Google Street View images to identify visual neighborhood characteristics. They then linked these characteristics to the self-reported sleep of 1,089 working adults living on the lower floors of apartments in Tokyo, who were most likely to be affected by the streetscape.
They found that those living in neighborhoods rated as having a stronger sense of safety tended to sleep longer, and that this rating appeared to be shaped by the streetscape. Generally, people slept longer in areas with lots of greenery, such as leafy trees, on the street. Similarly, high “enclosure”—meaning many tall vertical buildings and few wide-open spaces—was also associated with longer sleep and fewer insomnia symptoms.
However, the study also made a surprising finding. The researchers found that highly walkable streetscapes, such as those with more sidewalks and traffic signs, were associated with a lowered sense of safety and shortened sleep duration.
This suggests that walkability does not always represent a reassuring environment. Instead, a possible explanation is that streets with extensive pedestrian infrastructure are often busier, more crowded, and used by more strangers, which may be perceived as less safe or less relaxing than quieter residential streets.
“This study demonstrates the potential for evaluating streetscape characteristics across large geographic areas in a cost-effective manner,” Dr. Matsushita said. “Based on the technique used in this study, cities could potentially measure perceived safety, beauty, liveliness, and enclosure as well as pollution and noise.”
“We hope that opening up this new perspective creates further possibilities for designing healthier neighborhoods,” he concludes.
The findings were published in Building and Environment.
NewsMakers
Workout or nap? Either can help your sleepless brain, study finds
People who either completed 20 minutes of moderate-to-vigorous exercise or took a 90-minute nap performed about 22 per cent better on memory tests after 30 hours without sleep than those who did neither.
A short workout or a nap can help protect memory after a sleepless night, a McGill University-led study has found.
Researchers found people who either completed 20 minutes of moderate-to-vigorous exercise or took a 90-minute nap performed about 22 per cent better on memory tests after 30 hours without sleep than those who did neither. The findings, published in Proceedings of the National Academy of Sciences (PNAS), point to practical ways to counter the effects of sleep deprivation.
“Sleep loss affects nearly every aspect of how we think and function, but many people can’t simply stop what they’re doing and get more sleep,” said senior author Marc Roig, Professor in McGill’s School of Physical and Occupational Therapy. “Our findings show that even a brief bout of exercise may help preserve one of our most important cognitive abilities.”
The study involved 54 healthy young adults who stayed awake for 30 consecutive hours under lab supervision. Participants were then assigned to one of three groups: a 20-minute cycling session, a 90-minute nap or a control condition. Three days later, researchers tested their memory for images they had viewed immediately after the intervention. Those who exercised or napped remembered significantly more images than participants who did neither.
Same result, different pathways
While the memory benefits were nearly identical, brain recordings revealed that exercise and napping helped in different ways.
Napping appeared to help the brain recharge, making it easier to take in and remember new information. Exercise, by contrast, helped the brain use its remaining resources more efficiently, without making participants feel more tired.
The findings could eventually inform fatigue-management strategies in workplaces where sleep loss is common and mistakes can have serious consequences, such as health care, transportation and emergency response.
“A nap isn’t always possible in the middle of a shift,” said first author Madhura Lotlikar, a doctoral candidate in McGill’s Department of Neurology and Neurosurgery. “Exercise is accessible, inexpensive and easy to implement. That makes it a promising tool to help people stay cognitively sharp when sleep is limited.”
The researchers emphasize that exercise cannot replace sleep, but it may help people function better when getting enough rest isn’t possible.
About the study
“Protecting episodic memory after sleep loss: Similar benefits of exercise and naps via distinct neural contributions” by Madhura Lotlikar and Marc Roig et al., was published in Proceedings of the National Academy of Sciences of the United States of America.
NewsMakers
Study links coffee consumption to metabolic health and sex hormones
Despite having a similar body mass index (BMI), individuals with higher coffee consumption had lower total and visceral fat and greater skeletal muscle mass than those who consumed less coffee.
Coffee is one of the world’s most widely consumed beverages, and previous research has linked its consumption to a lower risk of conditions such as type 2 diabetes and cardiovascular disease. However, the biological mechanisms behind these benefits remain unclear. A new Finnish study links habitual coffee consumption to healthier body composition and metabolic markers, while revealing distinct associations with sex hormones in men and women.
The study, conducted at the University of Oulu, analysed data from 2,264 participants aged 46 in the Northern Finland Birth Cohort 1966. Researchers examined how habitual coffee consumption was associated with circulating metabolites, cardiometabolic risk markers and sex hormones.
Despite having a similar body mass index (BMI), individuals with higher coffee consumption had lower total and visceral fat and greater skeletal muscle mass than those who consumed less coffee.
In both men and women, higher coffee consumption was correlated with lower circulating levels of branched-chain amino acids, biomarkers that have previously been linked to insulin resistance and an increased risk of type 2 diabetes when chronically elevated.
The strongest sex-specific associations were observed in men. Higher coffee consumption was linked to a more favourable glucose–insulin profile, higher concentrations of total and bioavailable testosterone, and increased levels of sex hormone-binding globulin (SHBG). At the same time, free testosterone and the free androgen index were modestly lower. In women, hormonal associations were more limited and were primarily characterised by higher SHBG and lower measures of free androgens.
“Coffee is consumed by millions of people every day, yet we still know surprisingly little about how it relates to our metabolism and hormones. What stood out in our findings was a distinct hormonal signature that didn’t disappear even after we took into account BMI and lifestyle factors, with several of these associations differing between men and women,” says Luca Verroest, lead author of the study and Doctoral Researcher at the University of Oulu.
The results suggest that hormonal pathways may partly explain the relationship between coffee consumption and metabolic health. However, as this was an observational study, the findings demonstrate associations rather than cause-and-effect relationships.
The study is particularly relevant in Finland, one of the world’s highest coffee-consuming countries, where annual consumption averages around 11.8 kilograms per person.
The researchers say the findings provide a foundation for future studies aimed at determining whether coffee itself drives these biological changes and identifying the compounds responsible. These questions are currently being investigated in animal models, with the long-term goal of progressing to human intervention studies. Further research will be needed before the findings could inform dietary recommendations.
The study, Associations of habitual coffee intake with testosterone and cardiometabolic markers: the Northern Finland Birth Cohort 1966 study, has been published in the European Journal of Nutrition.
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