Tag Archives: shopping

TED Talk: China and the Future of Shopping

We all know that technology has changed the shopping experience. Instead of going into brick-and-mortar stores, or in addition to going into brick-and-mortar stores, shoppers now turn to PCs and mobile devices. Not only that, technology has changed our shopping behavior even when we are IN a store. This is true world-wide, but the future of shopping is here today in China.

In this TED Talks video, Angela Wang, a retail expert with firm BCG, explores the broad range of shopping services available online in China. In China, everything takes place on smart phones; 500 million Chinese consumers regularly use their mobile devices for purchasing goods and services. Think about that number – 500 million people. As Wang states, that is the combined population of the U.S., U.K, and Germany! And, all this has happened in only the last five years.

China’s technology firms are also powerhouses. Alibaba and Tencent own 90% of China’s e-commerce market, 85% of its social media, 85% of its Internet payments, along with diverse digital content, video, movies, literature, gaming and more.

Key trends that Wang sees in China shopping patterns are a growth in spontaneity, co-creation of products, ultra-convenience, and social shopping. Using WeChat, the mobile shopping journey in China far surpasses the U.S.

Marketers can learn a lot of lessons from this informative talk.

Group Activities and Discussion Questions:

  1. Discuss with students that while the buying process may vary slightly for different products and target markets, the basic 5-step process is problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Is this still the correct model?
  2. Discuss the changes that the students have made in their own shopping behavior. How do they use mobile devices to shop? Map the journey on the board.
  3. Show the TED Talk video. Make sure students pay attention to the end of the talk when the shopping journey is explained (9:00 minute mark): https://www.ted.com/talks/angela_wang_how_china_is_changing_the_future_of_shopping/transcript
  4. How does the Chinese shopping journey compare to the traditional U.S. consumer model?
  5. For a product, have students work on the actions taken in each of the five steps in the traditional model. Then have them work out the steps of the Chinese model.
  6. Debrief the exercise.

Source: TED Talks

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Packaging Impacts Performance

Consumers buy with their eyes. When shopping, the appearance of a product’s packaging has a large influence on sales. A strong package helps cut through the noise and clutter generated by hundreds of thousands SKUs carried on the average grocery store shelves. Packaging needs to speak to consumers; it has to convey value and a lot more.

According to research from The Nielsen Company, 64% of consumers try a new product because of packaging! And it doesn’t stop there; 41% of repeat purchases are attributed to consumers liking the packaging as well. And although consumers use their eyes, they also use touch as a factor when buying. Touch leads to purchase roughly 61% of the time. If marketers can get a consumer to pick up the box, the odds are high that a purchase will be made.

There are number of elements to good package design:

  • Be visible
  • Stand out on the shelf
  • Elicit an emotional response
  • Be memorable
  • Be distinctive

Nielsen also undertook a study to evaluate and understand packaging design in an effort to calculate the return on investment for good design. The results were powerful:

  • Visibility lift: +34%
  • Increase in preference: +28%
  • Forecasted sales impact: +5.5%

Go ahead and look at the shelves next time you are shopping. What catches your eye – and what makes you pick up a new product?

Group Activities and Discussion Questions:

  1. Discuss the importance of packaging with students. Ask them what factors lead them to pick a product off a shelf.
  2. What products have packages that are effective? Ineffective?
  3. Bring in a random sample of packaged goods that are in your pantry shelves, or make a trip to the store to find some good and bad examples.
  4. Divide students into teams.
  5. Have each team come up with a redesigned package for the product.
  6. Have the class vote on the best re-design.

Source: The Nielsen Company (2016). Perfecting packaging design.

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Pizza Baby Registry

After the wedding, come the babies, right? Perhaps not always that way, but this is certainly the case for Domino’s Pizza. Nine months ago (!) the company started a wedding registry for guests who want to give the happy couple pizza parties and party food. Now that the wedding festivities are over, Domino’s still wants to remain involved in the new couple’s life by offering an online baby registry through Gugu Guru.

The new parents-in-waiting can create their own baby gift registry for Domino’s pizza, foods, and gifts, including:

  • Hormonal and Hangry pizza
  • The Gender Reveal pizza
  • Pregnancy food pack
  • ‘Dadchelor’ Party food
  • Baby goods such as onesies, mugs, tumblers, shirts (Pizza for Two), and more…

And for a limited time, Domino’s also has a big contest give-away for new parents to win pizza for a year, plus a line of baby and parent gifts.

What were you expecting?

Group Activities and Discussion Questions:

  1. Discuss pizza delivery in general.
  2. In which stage of the product life cycle is pizza delivery?
  3. Show the Domino’s baby registry: http://www.dominosbabyregistry.com/
  4. A brief video can be viewed at: https://youtu.be/N6eeNUQvPqc
  5. Next, divide students into teams.
  6. Have each team select a product or service that is in the mature stage of the product life cycle. What can be done to extend the life cycle and increase sales?

Source:  Domino’s Pizza (2017, Nov. 29)

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