A survey carried out by Advertising Standards Canada “found that only 50 per cent of Canadians believe that most ads are truthful,” (1).  However the same survey discovered that “only 49 per cent say [most ads are] accurate,” (1).

Because we are bombarded by advertising every day, this quantitative analysis should raise some concern for people trying to market their product/service.  For advertisers need to not only convince people to buy what they’re selling, but they must also convince them of their legitimacy.  However, this data should not be too concerning for companies that have a brand image that consumers trust such as Tim Hortons or Apple.   Usually consumer behaviour is influenced by cultural, social or personal factors, but when firms do not appear to be legitimate their brand image is hurt.  And once the image of a brand is hurt, the company is bound to take a hit (such as Nike’s involvement in sweatshops).  Consequently, the value of a major firm’s stock will be likely to decrease. In order to thrive, legitimacy in ads is a necessity.

1. http://www.theglobeandmail.com/report-on-business/industry-news/marketing/persuasion/just-half-of-canadians-find-ads-truthful-honestly/article2239932/

Blog post #9

Food prices have risen in the past year with some goods (such as potatoes) increasing by as much as a dollar (1).  This increase can be attributed to such things as higher fuel prices, a decrease in supply (due to drought, floods, fires etc.), and an increase in demand (1).  However, as the supply of these goods is expected to increase, prices are expected to decrease slightly.

As a student with little to no income, it is important to account for expenditures.  A significant part of these expenses are groceries as they tend to take up a large chunk of monthly purchases.  Soon, I will be living on my own and be required to cook for myself.  In order to monitor my spending and ‘stay within my means’, it would be wise to budget my grocery money wisely.  However thanks to this blog, I can better understand why food prices change.  And if I follow and understand how commodity prices affect grocery prices then I may be better able to allocate my money.

1. (Blog) http://www.theglobeandmail.com/globe-investor/personal-finance/home-cents/is-your-family-grocery-bill-soaring/article2229472/

rigaudio is a company with the purpose creating music for “eco-friendly, portable solution, for listening to music while on the go,” (1).  The name It is an entrepreneurial venture because its products are innovative, such as the “Rock-It” which can turn practically any object into a speaker.  Origaudio has created products that have taken over or even have revolutionized the segment for portable speakers.

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Origaudio relies heavily on their ability to innovate.  Although there are other portable speakers out there from electronic giants such as apple, the mobility of Origaudio’s products remains unmatched.  For as long as this happens, the company can retain a monopoly on its market.  Eventually though, there will be better competetion that can compete with Origaudio, but until then Origaudio is able to reap the benefits of its target market.

Source (s):

http://origaudio.ca/about-us

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Today, people are “splitting attention more than ever between old-fashioned network TV, specialty channels and, increasingly, video-on-demand and online viewing windows” (2).  Less TV is being watched during prime-time hours (8pm-11pm) on weekdays.  Evidence supporting this is that the “key 25-to-54 demographic has fallen to 23.8 hours from 25” (2).

I agree with Michael Bean that “viewers hate watching commercials” and they will find other means (PVR or online) of watching their favourite TV shows (1).  I, myself, do exactly that and PVR so I can avoid commercials.  Viewers are also watching their desired programs at their convenience.  For example, it is not uncommon for people to binge and watch several episodes of a show over a weekend ( 2).  As viewership shifts to watching shows online, we will see an increase in revenue from selling online advertising.  However, this does not mean that TV commercials are going anywhere as ad agencies are “largely unfazed” (2).  For cable giants such as Rogers and Shaw, there will be a trend towards diversifying how they offer programs such as how Rogers is trying to “secure rights to back catalogues to popular TV series, either for online or video-on-demand” (2).

1. https://blogs.ubc.ca/mikebean/2011/10/24/where-have-tv-viewers-gone/
2. http://business.financialpost.com/2011/10/24/where-are-tv-viewers-slipping-away-to/

Tim Horton’s, “the king of comfort food” recently added lasagna to their lunch menu.  The popular fast-food restaurant did this in an attempt to differentiate from and overtake McDonald’s in the lunch market.

While I agree that consumers could go “eat pasta at major pizza chains like Pizza Hut and Fresh Slice,” I disagree with the implied message that lasagna will have little to no effect on customers (1).  Instead Liming argues that competition will ultimately be decided by “taste preference, competitive prices and convenience” (1).

Tim Horton’s is synonymous with comfort food.  And by adding lasagna to its menu, Tim Horton’s is augmenting its share of the comfort food market.  Lasagna also gives faithful customers more choice which in the long run will prevent people from getting bored of their menu options and in turn, help them retain customers.  Tim Horton’s brand identity is built upon quality, home-style food.  Rather than going to pizza chains, customers will continue to eat at Tim Horton’s.  For customers buy into the Tim Horton’s atmosphere where people sit-down to eat wholesome food.  They do not need one product to distinguish them; the brand is strong enough to stand alone.

1. https://blogs.ubc.ca/liminghuang/2011/10/17/tim-hortons-lasagna/