Purpose: This paper aims to summarize the results of an empirical project to understand the perceptions of consumers of the future high end products in the USA. This project was a precursor of a larger global project on the topic. Design/methodology/approach: The approach utilizes the consumer insights-driven process, rule-developing experimentation (RDE), introduced by the senior authors and developed in cooperation with Wharton School of Business (University of Pennsylvania). The empirical part was conducted with qualified US consumers (middle- and upper-middle class respondents). Based on a series of in-depth qualitative interviews with global leaders of luxury and premium companies, star designers and thought leaders, five dimensions of high end offering were identified, with each dimension having a unique set of four factors (elements). The second part included a quantitative survey based on RDE (modified conjoint analysis) conducted in the USA with 373 qualified middle- and upper-middle class respondents to discover the driving forces behind their perceptions of high end. Findings: There are four distinct consumer mindsets towards future high end products. The segmentation is based on a disciplined experimentation afforded by RDE and produces a more targeted understanding of the consumer mind. Practical implications: The paper provides insights of what might drive the consumer perception of high end products in the near future. The pattern-based consumer mind-set segmentation creates actionable directions for corporations in answering today's big question "How can brands migrate from being cost-driven commodities to higher margins and profits?" The answer is in the high end. Originality/value: The approach offered here could help designers and brand managers to efficiently create better products that consumers like and perceive as high end. This will result in higher margins and help marketers to differentiate their respective products from the competition.
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The starting meta-trend at the basis of this paper is that lifestyles in the city will continue to “Blur” between work and urban leisure. To describe “Blur”, one might say that the integration of technology and increased connectedness into all aspects of life has led to the hyper-availability of content regardless of setting, breaking down the traditional wall of separation between work and home. Behaviours, activities, and categories will increasingly overlap and complement each other. Business categories themselves will cease to exist as such. They will increasingly blur into new blended propositions, beyond linear innovation. In this dynamic context, perceptions of value and the social construction of notions of luxury will continue to translate into people’s willingness to pay a premium, from mass luxury to high end, restructuring consumption dynamics for commodities, consumables and services at brand, innovation and proposition levels. The paper offers extensive analysis of these themes. Presenting an existing tool from a world-class research programme on urban futures plus two proprietary tools developed for the specific purpose of this paper, as based on reflexivity, anecdotal evidence and a rich apparatus of references.
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Deze publicatie bevat de rede die Karel Jan Alsem gehouden heeft bij zijn installatie op 29 november 2013 als Lector Marketing/Marktgericht Ondernemen aan de Hanzehogeschool Groningen. Hij betoogt dat marketing een grotere strategische rol in organisaties zou moeten krijgen. Want marketing is bij uitstek de verbinding tussen klantwensen en het DNA van een organisatie. Doordat merken gemiddeld voor mensen niet heel belangrijk zijn, is goede branding en onderscheidende zichtbaarheid juist van belang. Met de groei van big data en het belang van onbewust gedrag, zullen vooral die marketeers in de toekomst succesvol zijn die de consument het beste begrijpen. Onderzoek is daarbij essentieel. Studenten zullen daarom meer moeten worden opgeleid met evidence-based marketing.
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The aim of this paper is to investigate which portfolio extension option: either a cheaper subbrand or a private label endorsed by the national brand is better from the consumer perspective. Two hypothetical product concepts from a leading beer brand were tested among Dutch consumers. The findings show that consumers are equally likely to try the options and form a positive or negative opinion about the manufacturer after the extension. However, when looking at the ability for a brand to cover a price conscious segment and thereforeincrease penetration, the cheaper national sub-brand performs better. Given that the manufacturer will be not restricted in distribution of such a brand, our findings are in favour of a cheaper sub-brand rather than an endorsed private label.
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