persuasive marketing
Persuasive Marketing methods companies use

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in this article we are Identifying companies that exhibits the use of persuasive tactics in their marketing communications.  For each company, I’m explaining what forms of persuasion they are using and the expected outcome(s).  Then explaining how I believe these practices may be contributing to or detracting from their reputation within their respective industries.  

Identify a service company that you believe exhibits the use of persuasive tactics in their marketing communications.

1.Citylook barber shop for service company.

– explain what forms of persuasion they are using and the expected outcome

The use of Endowed Progress Effect To Build Customer Loyalty

They use the stamp card persuasion tactic. When I first went to this barber shop after my haircut the barber gave me a card after taking down my e mail address, but this might sound like a traditional form of marketing and promotion but that was not at all the case.

Usually after each haircut the barber would stamp the card once, but with one hole in the card the free haircut seem a bit far from reach and I might even forget that I got the card.

Considering the factor that within city look salon there is about 15 barbers, which means that if you are a walk in customer, odds are you are going to be on the line and the next available barber will do your hair cut.

Although it is a one business but in a sense the profits are based on the amounts of haircuts preformed, all the barbers are competing on getting the new customer to come back and make an appointment with a specific barber in order to retain them as a regular customer. 

But what my barber did was actually different, instead of stamping the card once, he did something different he stamped 4 out of 10 holes I just assumed he was being nice to me and didn’t give much thought about it.

Now my card has 4 holes in it, and for some reason I never threw it out but when I’m usually i’m offered the card at Montclair for coffee, I tend to throw the card out after the first stamp even right after making the purchase.

Since I see the value of holding on to the card seems very low and I tend to misplace it and not give much thought or remember where I put it, or even remember to use the card again.

Most of us also end up giving the coffee card no value considering that i’m really far from achieving the free coffee since i’m 9 coffee purchases  away and the value of this card is exactly equal to replacing it the next time I purchase a coffee since I will receive a one hole on the new card and the value of the one hole was equal to the coffee I purchased.  

But what my barber did was genius since the haircut cost me $30 dollars him punching the card 4 times gave the card value of 120$ and made reaching the next haircut not that far from reach since next time I go to the barber shop i’m half way through.

I never misplaced that card and I actually kept it in a place where I can use it again, but if I wanted the fifth hole I couldn’t just go to city look salon as a walk in customer since I might not get the same barber I got, and the card would seem useless, the card it self had his name and phone number as well as business hours so for me to get the fifth hole and be half way through the process I had to book an appointment with my barber in order to get the fifth hole.

Off course the other barbers were doing the same card puncher thing but all the previous times I went I have received one hole card by the different barbers in the salon. Same thing that happened with the coffee card I ended up throwing their cards away and never booked the appointment again.

Not only this what he did was e-mail me a month later and told me if I bring the card I would receive two punch holes but I needed to make an appointment, and I ended up calling and setting an appointment for the first time and he is currently my barber for 2 years now.

-Then explain how you believe these practices may be contributing to or detracting from their reputation within their respective industries.  

this method was definitely contributing to his reputation since every other time I went and I had a different barber who followed the classic method of stamping the whole once which was ineffective, this has helped him gain a regular customer that in a regular case he would’ve never gained.

I would’ve went as a walk in customer again and a different barber in the salon would’ve gave me a hair cut, this simple persuasive strategy helped him gain a loyal customer and in a sense and not only that I actually went and told my friends about how he stamped it 4 times and in an indirect way he started a word of mouth marketing 

-Identify a product oriented company that you believe exhibits the use of persuasive tactics in their marketing communications

2.Amazon for a product company

The use Scarcity To Boost Sales

Amazon along many other E-commerce sites use scarcity as a persuasive marketing method.

Scarcity is the biggest motivator for action and we can see that when people are about to die and have not much time left, they tend to be motivated to try accomplish all the things they wanted to do since they are running out of time and uncertain about tomorrow but when they had the time they tend to be lazy and procrastinate.

Amazon uses the same strategy in order to motivate and persuade people to make the purchase. Amazon has Last minute deals or also known as the deals of the day since they wont be available tomorrow, this strategy is a countdown that the consumer can actually watch as if their ability to purchase the product is decreasing every second.

They use this method in many different ways:

A) product that will only be available for sale for the countdown period and after the timer the product wont be listed on the store at all and will never be available again, this creates a scarcity and usually this type of persuasion is on custom products and limited edition products, this creates more value for the product where who ever makes the purchase is going to be differentiated and get a greater feeling of satisfaction due to the rarity of the product but the decision has to be made instantly 

B) the product will be on sale only during the timer period and after the timer runs out the product price will increase back to normal so based on what you have searched recently on amazon, the company  tend to recored all the history of you search if you are logged into your account, the next step for amazon Is to create a scarcity on a product you have searched for, by putting a timer on the sale the consumer is going to take action and make the purchase since he might have to pay the full price if he procrastinate the purchase, the consumer might make the purchase even if they cant afford it since they know that in the long run they will be saving money and if they don’t make the purchase now they are going to pay more for it in the future. 

C) the product has no timer but the scarcity is due to the availability in stock, since only one item is left in stock. no discount accompanied by the listing and you can loose the ability to buy it in matter of seconds since in the customer mind he can loose the ability to buy the product considering that someone else might be viewing the product at the same time and beat you to making the purchase. This will lead to instant action especially if it is product they really need. Personal suggestion to amazon would be when a consumer is viewing this product, additional pop up sign would notify that someone else is lookin at the product at the same time, in a sense it will create more competition on the product. 

-Then explain how you believe these practices may be contributing to or detracting from their reputation within their respective industries.  

I think these methods are very attractive and very common in the e commerce world, I think these methods are more effective than regular promotion or sales since when the consumer sees a product that is on sale theres not much of scarcity sense leading the consumer to procrastinate the purchase or simply wait for another sale that brings the price down more at a later date.

But persuasive marketing doesn’t leave them with much of a choice and lead them to make higher rate of  impulse purchases as well as it influence the decision making process and it would make the product it self more memorable and distinguished from other product and in a sense it eliminates the attention on different products, since other products might seem more available and this one is not going to be for long. 

I feel like these practices are neutral to the reputation since the methods are not applied on all products and only a selective few, and simply it could just be stating facts about the availability of the product.

the count down is still relatively new and it is simply giving the consumer the option to save money and it cant be really perceived as a negative influence on the reputation of the business.

it can be if amazon is targeting and applying these methods on the items the customer search, but as of now we don’t have a proof that amazon does that.

Also it can be negative if it was overused, on many products and if they don’t actually return the product to the original price and keep the timer sale even after the timer has expired.

If more of the same rare item is found as well as if the product decreased in value lower than the advertised sale price.