Sucker

Saturday as I was doing some grocery shopping, I realized something about myself. I'm a sucker for those fancy water drinks. Hate to admit it, but I'm guilty.

As I walked into Albertsons and past the refridgerated beverage isle, I filled up my basket with water. Seriously? It's water for crying outloud. Somehow I can justify spending $1 on a flavored water but I'm too cheap to buy the $3 juice. As I noticed the weight of my basket all I could do was laugh at myself.

After noticing this trait, I found myself stopped in front of another refridgerated water display. I turned to my friend and admited outloud one word: "sucker". This is marketing at it's finest.

Nudge

I recently finished the book Nudge: Improvng Decisions about Health, Wealth and Happiness by Thaler and Sunstein (if you haven't read it, I reccommend you check it out). After digesting the book in a six page book report, I have found myself catching inconspicuous "nudges" everywhere. I'd like to share some of my recent discoveries:

• Grocery Stores: The new Safeway store in town has healthy food nudges all over the store. If a customer walks in the the left door, they enter directly into the produce department. The produce department is the most open area in the store. The fruits and vegtables are the main color source in this area. As you move to the back of the store toward the milk, there are racks in the isle way with bannans. So, even if someone bypasses the produce department, they are bound to come across some fresh food somewhere in the store. 
• Overdraft Protection: As a former bank teller, I could tell endless stories of upset customers about overdraft protection. Few people notice that overdraft protection is an opt-out default. This means that if you do nothing, you are automatically enrolled in this "expensive when used" service. Banks are nudging customers to participate in overdraft protection ( a great revenue scheme for banks). 

Take a look around, nudges are everywhere! The examples provided above give evidence that nudges can be a good and bad thing for consumers. Simply being aware of the nudges may be the key to finding a way to listen to the good nudges, and ignore the bad nudges.  

Consumer Engagement

I spent this past weekend in Seattle, WA for a matching intern event for The Boeing Company. The weekend was jam packed with information all about the company. During a presentation given by a Brand Positioning Manager, I was informed about Boeing's  techniques and importance of consumer engagement. This information got me really thinking about consumer engagement.

Consumer engagement is an important aspect in positing a brand. The more a brand is able to engage its consumers, the more invested its consumers will become. There are many techniques company's use to engage its customers.

How is an airplane producer supposed to engage its customers through the Internet you may ask. Take a look at Boeing's website and the answer to that question is splattered all over.

787 Dream Tour

• The section allows airplane enthusiasts to follow where the new 787 Dreamliner is and where it will be next. This tactic fully engages people. Followers are encouraged to develop an obsession of being in the know about this new product. 

• The section also allows customers to view a virtual tour of the airplane and view all the new details in the design. I even found myself engrossed in the extent of information and graphics in this section. 

Randy's Journal

• The section is an interactive blog with real time updates straight from the VP of Marketing. The blog is an excellent way for Boeing to communicate immediate information to its followers. 

After listening to a mini-presentation on Marketing techniques used by Boeing to encourage consumer engagement I have come to realize the importance of it. Next time you find yourself captivated by a company's website, give credit to the Marketing department. 

Impulsive Online Shopping

Bargain shopping has become a hobby of mine. I pride myself in being able to walk away from an item with the mentality that I'll wait until it goes on sale. Scrounging clearance racks is like treasure hunting. This obsession with finding a good deal is not just limited to physical shopping, there are many websites out there that do the work for you. Many sites exist that offer a great deal on a few items for a limited time. Examples of these websites include:

• Whisky Militia
• Steep and Cheap
• Woot
• Seize the Deal

All these websites offer a great deal and the infamous countdown timer. The timer ticks away as you asses your purchase encouraging a sense of urgency on the purchase at stake.

These websites create impulsive purchases. Customers purchase items they don't necessarily need. They feel that they are getting too great of a deal to pass up. In reality, these purchases may be unnecessary. Consumers get so caught up in the idea of saving money that they actually end up spending more on things that they don't even need.

Next time you find yourself scrounging one of these bargain sights, ask yourself:
"Is this really a bargain?"

Just a Little More

The mentality of spending "just a little more" on a purchase has quickly diminished my funds. After a class discussion on the topic last week, I took a moment to reflect on my own behaviors. I regret to admit, I've been guilty of this mentality. Examples of my "just a little more" mentality are endless, but I'd like to share my most expensive one.

MY NEW CAR!

In December I had my first experience of purchasing a new (to me) car from a selection. My past two cars were purchased with no selection because I came across good deals. In the process I was bombarded by pushy sales people who all wanted my hard-earned cash. I had set a strict budget for myself. I made promises to myself to not exceed my limit. I was feeling pretty headstrong about my decision until I came across the car of my dreams.

Never in a million years did I think I would be able to own such a beautiful car while in college. I felt all my willpower disappear as I looked at the price tag--$600 over budget. Suddenly all the excuses and justifications started rolling through my mind.

• A year from now, the extra money spent will be worth it.
• I'm already spending a lot, a few extra hundred will be fine. 
• The car is worth the extra cash.
• But the seats are HEATED!

I knew the moment I was handed the keys for a test drive that my purchase was going to come in over budget. The car had to be mine. Every mile I drove, I fell deeper and deeper in love. By the time I got back to the dealership it was clear the car was sold.

I don't regret my purchase. I think that if the experience taught me anything it would be that    I'm doomed when it comes time to purchase a home. 

Image Credit: http://www.admiralmotors.com/chicago/2002_Volkswagen_Passat_GLX_01_11349cdf563c9c1338318eb2c09a51bb.jpg

Inconspicuous Haircut

The other day I changed one of my regular inconspicuous consumptions for a cheaper version and the outcome was very pleasant.

I was in desperate need of a haircut. So, in my regular pattern, I texted my Aveda trained hair stylist. To my horror, her response informed me that she had moved. I went into an immediate panic. I've always been very particular about who cuts my hair and in recent years I have developed a strict criteria:

• Aveda trained
• Talks to me before touching or cutting my hair

This criteria has seems to always result in a steep price. I've been able to  justify the price tag by telling myself, "your hair is something you wear everyday."

I cringed at the idea of finding someone new to cut my hair. That takes both time and money and with both resources low, I needed a more viable solution to my problem. I decided to take my friend's advise and go to Great Clips. It took me some major mental prep to sit down in the strangers chair, but to my surprise, it had a decent outcome.

My inconspicuous consumption of my non-Aveda haircut has made me realize that the quality of the haircut is not always directly related to the price. I saved money and no one notices that my hair cut was not performed by an Aveda stylist.

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More For Less

The other day while I waited in the 5 o'clock dinner rush line at Taco Bell I carefully looked over the menu to determine what I would have for dinner. As I stood in line examing the menu I pulled my lousy $5 bill out of my pocket, my dinner needed to fall within this budget. The abundance of items on the Taco Bell menu always seems to overwhelm me.

As the workers tackled the line, my turn was approaching quickly and I still had no idea what I was going to order. Just when only two customers remained in front of me I decided what my dinner was going to consist of:

• cheesey gordita crunch ($2.69)
• crunchy taco ($1.09) 
• medium soda ($1.69) 
• for a grand total of $5.47...SHOOT!

It was just about my turn when the big $5 box sign caught my attention. I read the detail that listed what the box contained: a cheesy gordita crunch, a crunchy taco, a medium soda, AND a supreme burrito.

A double take confirmed that this $5 box contained all the items I wanted plus a supreme burrito for a lower price. So in an attempt to get all that I wanted for dinner within my $5 budget I ordered the $5 box. The $5 box proved to provide more food for a lower cost than 3 of the 4 items seperate.

The look on my boyfriend's face when I presented the supreme burrito to him was the best part. Little did he know that my "thoughtful" gesture of picking him up a snack was the result of saving $0.47 to get my dinner of choice.

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