Friday, 6 June 2014

Friday Research: The Big Marketing Fight - Time Vs Money

When Will You Use This?  

Developing promotional campaigns.

What’s The Red-Letter Bite Today? 

Time and money, the concepts deeply integrated in majority of today's ads, can affect consumer’s product evaluation strategy and lead to a specific product choice.

Current research* investigates time and money concepts and their importance to the consumer.

Authors show the difference between two concepts, stating: "as an important tool to gauge personal success and the ultimate media of exchange of goods and services, money is a tangible resource with its value being precise and relatively consistent across transactions. As a result, people are highly motivated and able to process money-related information in an analytical manner. By contrast, everyone receives relatively fair treatment in terms of time as we are all granted 24 hours per day no matter how we spend that time. Hence, compared to money, people are less motivated to process time-related information."

In life consumers are often required to choose between spending time to save money (e.g., buying separate products to prepare the dish) or spending money to save time (e.g., paying more for express delivery). This study reveals that increasing the salience of customers' time or money expenditure may change not only their distribution of resources, but also the products chosen.

Time is Money? Your Customers Don't Think So.

Addition To Your Bag of Tricks    


Current research might help you identify the evaluation strategies most likely to be adopted by consumers, and to highlight the aspects of an offer that will positively influence your consumer choice. As authors suggest, "for instance, the concept of money may be central to industries such as banking and luxury goods, whereas time may be more salient to educational institutions and delivery-services. Similarly, certain promotional programs put more emphasis on time investment (e.g., loyalty programs) while others focus on cost saving (e.g., coupons; see Lee & Ariely, 2006). Our research suggests that when time is made salient, it might be a good strategy to emphasize non-alignable differences, a unique verbal feature, or the overall attractiveness of an option. In contrast, when money is made salient, focusing on attribute-level advantages is crucial to marketing success."

*Lei Su, Leilei Gao.Strategy Compatibility: The Time versus Money Effect on Product Evaluation Strategies, Journal of Consumer Psychology: April, 2014. {Thanks for the material}

P.S. When you’re done reading, I’d love for you to share your experience with integrating time and money in the promotional material? Leave a comment or Tweet me, let's chat!

P.P.S. Need some help on crafting your marketing message? Let's do this together.

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