Re: The Cost of Fast Food: America’s Waistline

Kevin brought up a significant topic about how McDonald’s targets unethically toward those young audience. The article, The Cost of Fast Food: America’s Waistline?, states that McDonald’s use toys to guide those naïve children to order Happy Meal.  Many kids are purchasing because of toys rather than meals. Even though the final decision makers of purchasing are parents, children make the incentive to start the purchase decision.  The toy, act as an extra bonus, adds value on the meal. Surprisingly, not only kids, even adult are attracted by these additional treats.  For example, for those Hello Kitty lovers, they are willing to purchase repeatedly to get the whole collection of Hello Kitty toys from McDonald’s.  McDonald’s introduces small treats that public wants and like to increase purchases.

Not only McDonald’s, many fast food restaurants or even chain stores also use this kind of strategy to attract their customers.  As an example, famous convenience, 7-Eleven, introduce promotion that allow people to redeem Hello Kitty figures after collecting certain amount of stickers or certain amount of stickers plus cash. These stickers are given out after purchasing of certain dollar amount. There are many people doing their shopping because they want to collect stickers for redemption.  This strategy is very effective, especially when the toys are characters of popular cartoon, animation and movies.

In most of the time, people are purchasing because of their perceived value of the product.  By adding an extra small toy, marketers add value to consumers’ shopping.  Additionally, the small toy gives out a feeling of exclusiveness when the company collaborates with other to introduce new figures that consumer can found only in its stores.

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JetBlue Allows Sharing of Loyalty Points to Strengthens Loyalty Program

Most airline carriers have their own Loyalty Program to retain old passengers and attract new passengers.  By collecting points through each purchase, passengers can use the accumulated points to redeem flight tickets or other commercial goods. Traditionally, the loyal program is more beneficial for frequent travelers because they can redeem their points faster through frequent purchases. However, the program is less attractive to less frequent traveler, since it will take a long time for them to accumulate enough point to redeem a ticket and there is an expiry date for point collected. In order to solve this problem, Tanya Mohn introduced a new policy in JetBlue’s Loyalty Program in one of her blog post, “In JetBlue Loyalty Program, Families Can Share Points”.

 

 

JetBlue, an American low-cost airline, introduces a new policy for its TrueBlue loyalty program to attract those less frequent travelers.  The new policy allows members within a designated group to share their loyalty points with no expiry date.  Members in the group do not need to be related, it can be family members or friends.   Individuals can decide the percentage of points that they want to contribute to the pool account. Through a sharing account, members can redeem a ticket easier and quicker compared to an individual account. People who are not purchasing tickets for points can also share their point to people who normally do.  This new policy enhances value for its consumers and strengthens the loyalty of consumers.  Even though JetBlue has a very few airline carrier, this new policy expands to a new potential market.

http://www.usatoday.com/story/travel/flights/2013/10/11/jetblue-frequent-flier-points/2961001/

http://intransit.blogs.nytimes.com/2013/11/05/in-jetblue-loyalty-program-families-can-share-points/?_r=0

image: http://i617.photobucket.com/albums/tt254/viewfromthewing/JetBlueFamilyPooling_zps8c49b446.jpg