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Promotional games at retail stores increase consumer spending

Games of chance are potential goldmines for both brick-and-mortar stores and online retailers.

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Photo by Artem Beliaikin from Unsplash.com

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.”

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Alsons Dev welcomes The Abba’s Orchard to Avia Estate

The country’s largest and most esteemed network of authentic Montessori schools, The Abba’s Orchard, breaks ground on June 14 for its 15th campus located in Avia Estate, a township project in Alabel, Sarangani by Alsons Development and Investment Corporation (Alsons Dev).

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The country’s largest and most esteemed network of authentic Montessori schools, The Abba’s Orchard, breaks ground on June 14 for its 15th campus located in Avia Estate, a township project in Alabel, Sarangani by Alsons Development and Investment Corporation (Alsons Dev).

The expansion reflects the school’s mission of “Discover True Montessori Philippines,” offering high-quality education in the SOCCSKSARGEN Region—a mission that aligns with Alsons Dev’s vision to offer vibrant live-work-play-learn communities where families and businesses can thrive. Recognizing this shared purpose, Alsons Dev partnered with The Abba’s Orchard, contributing a substantial two hectares of land within Avia Estate to make the school a reality.

“We at Alsons Dev are thrilled to partner with The Abba’s Orchard in bringing this exceptional learning environment to Alabel,” said Miguel Dominguez, Alsons Dev Director. “This collaboration aligns with our commitment to fostering growth and development within SOCCSKSARGEN.”

Discover how Avia Estate can let you live your best life. For more information about Avia Estate, visit facebook.com/AviaEstate.

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Optimism wards off procrastination

While procrastinators often admonish themselves for their “bad habit,” it turns out that their worries for the future are more to blame.

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People with an optimistic outlook on the future are less likely to be severe procrastinators, according to new research at the University of Tokyo. While procrastinators often admonish themselves for their “bad habit,” it turns out that their worries for the future are more to blame. Through a survey of nearly 300 young people, researchers found that those who had a positive view about their stress levels decreasing in the future, compared to the past or present, were less likely to experience severe procrastination. Views on personal well-being didn’t appear to have an effect. Improving people’s outlook and readiness for the future could help them overcome procrastination and achieve a less stressful lifestyle. 

How many times have you made a “to do” list, and although the most important task is at the top, you seem to be working your way up from the bottom or distracted by something else entirely? While we might chide ourselves for procrastinating, sometimes the more we try to overcome it, the more stressed we feel and the cycle continues. That is how it was for graduate student Saya Kashiwakura from the Graduate School of Arts and Sciences at the University of Tokyo, so she decided to investigate why.

“I have struggled with procrastination since childhood. I would clean my room when I needed to study for a test and prioritize aikido practice over my postgraduate research. This habit of putting off important tasks has been a constant challenge,” said Kashiwakura. “I wanted to change my behavior, as I realized that I was not confronting the future impact of my actions.”

This inspired Kashiwakura to examine the relationship between procrastination and the procrastinator’s perspective on time, particularly their view of the future. When she began researching procrastination, she was surprised to discover that many more people suffer from it than she had imagined and found it reassuring her problems were not unique.

Previous research has shown that a feature of procrastination is disregard for the future or difficulty linking present actions with future outcomes. However, the reasons for this have been unclear. Kashiwakura and co-author Professor Kazuo Hiraki, also from UTokyo, proposed that it might be because severe procrastinators have a more pessimistic outlook. 

The researchers surveyed 296 participants in Japan in their 20s for their views on stress and well-being, and importantly how these changed over time. This included asking about their experiences from 10 years in the past through to the present, and their expectations for 10 years in the future. From the results, participants were clustered into one of four groups (for example, if they thought their situation would improve or would stay the same), and then each group was divided into severe, middle and low procrastinators. 

“Our research showed that optimistic people — those who believe that stress does not increase as we move into the future — are less likely to have severe procrastination habits,” explained Kashiwakura. “This finding helped me adopt a more light-hearted perspective on the future, leading to a more direct view and reduced procrastination.” 

It was not only the level of stress people experienced, but how their perception of it changed over the 20-year time period discussed, which influenced their procrastination habits. Surprisingly, a relationship wasn’t found between procrastination and negative views on well-being, such as one’s attitude towards oneself, or not yet finding purpose and goals in life.

Using these results, the team wants to develop ways to help people nurture a more optimistic mindset and overcome procrastination. “We hope our findings will be particularly useful in the education sector. We believe that students will achieve better outcomes and experience greater well-being when they can comprehend their procrastination tendencies scientifically, and actively work on improving them, rather than blaming themselves,” said Kashiwakura. 

“Thoughts can change with just a few minutes of watching a video or be shaped by years of accumulation. Our next step is to investigate which approach is appropriate this time, and how we can develop the ‘right’ mindset to lead a happier and more fulfilling life.”

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Study shows how night shift work can raise risk of diabetes, obesity

“When internal rhythms are dysregulated, you have this enduring stress in your system that we believe has long-term health consequences.”

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Just a few days on a night shift schedule throws off protein rhythms related to blood glucose regulation, energy metabolism and inflammation, processes that can influence the development of chronic metabolic conditions.

The finding, from a study led by scientists at Washington State University and the Pacific Northwest National Laboratory, provides new clues as to why night shift workers are more prone to diabetes, obesity and other metabolic disorders.

“There are processes tied to the master biological clock in our brain that are saying that day is day and night is night and other processes that follow rhythms set elsewhere in the body that say night is day and day is night,” said senior study author Hans Van Dongen, a professor in the WSU Elson S. Floyd College of Medicine. “When internal rhythms are dysregulated, you have this enduring stress in your system that we believe has long-term health consequences.”

Though more research is needed, Van Dongen said the study shows that these disrupted rhythms can be seen in as little as three days, which suggests early intervention to prevent diabetes and obesity is possible. Such intervention could also help lower the risk of heart disease and stroke, which is elevated in night shift workers as well.

Published in the Journal of Proteome Research, the study involved a controlled laboratory experiment with volunteers who were put on simulated night or day shift schedules for three days. Following their last shift, participants were kept awake for 24 hours under constant conditions—lighting, temperature, posture and food intake—to measure their internal biological rhythms without interference from outside influences. 

Blood samples drawn at regular intervals throughout the 24-hour period were analyzed to identify proteins present in blood-based immune system cells. Some proteins had rhythms closely tied to the master biological clock, which keeps the body on a 24-hour rhythm. The master clock is resilient to altered shift schedules, so these protein rhythms didn’t change much in response to the night shift schedule.

However, most other proteins had rhythms that changed substantially in night shift participants compared to the day shift participants.

Looking more closely at proteins involved in glucose regulation, the researchers observed a nearly complete reversal of glucose rhythms in night shift participants. They also found that processes involved in insulin production and sensitivity, which normally work together to keep glucose levels within a healthy range, were no longer synchronized in night shift participants.

The researchers said this effect could be caused by the regulation of insulin trying to undo the glucose changes triggered by the night shift schedule. They said this may be a healthy response in the moment, as altered glucose levels may damage cells and organs, but could be problematic in the long run.

“What we showed is that we can really see a difference in molecular patterns between volunteers with normal schedules and those with schedules that are misaligned with their biological clock,” said Jason McDermott, a computational scientist with PNNL’s Biological Sciences Division. “The effects of this misalignment had not yet been characterized at this molecular level and in this controlled manner before.”

The researchers’ next step will be to study real-world workers to determine whether night shifts cause similar protein changes in long-term shift workers.

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