Creative promotion strategy
Apr 3rd, 2011 by yuewu
Every time when comes to the boxing day or some other holiday, a lot of merchant tag big advertisement on the window display of their store trying to attract a substantial customers to the store.
They offer consumers a variety of sales promotion such as buy 1 get 2 or 50% discount on selected goods. In china, when Chinese New Year comes, shopping mall are always crowed of people, and everything seems can be bought at a very good deal. Merchants usually offers consumers 200 yuan ‘s coupon if they spend 500yuan. One consumer spend 1000 in total, and he get a 200 yuan’s value coupon, he may want to buy a stylised jacket of 800 yuan, with that value coupon, he actually pays 400 yuan out of his pocket. The tricky tactics occurs: with actually paying 400 yuan, if one spends 100 more money, he would get another 400 value coupon. But in that shopping mall, it’s hard to find merchandise priced at 100 which are actually needed. For me, I often feel trapped in such kind of promotion activity. And I believe that most consumers feel that way, too.
Here, many of the merchants and retailers are very smart to price their goods, they use a statistic method to price the goods according the face value of the coupon, and leave consumers in a trap that seems they just cannot get rid of the coupon if they continues figuring out a way of getting more coupon with spending not too much money. As a result, consumers probably buy some stuff which are unnecessary and merchants and retailers make a great profit.