Marketing research studies are your windows to gazing inside the mind of your costumer. We’re going to focus on two important consumer psychology issues that will profoundly affect the launch of your next product.
According to a study published in the Journal of Consumer Research, a majority of the buying public is willing to pay a higher price for a product that hasn’t been launched and therefore isn’t available yet. This however changes when the product is available. The allure fades and target market is no longer willing to pay for the initial “higher” price they professed earlier. They’re actually less likely to buy the product altogether.
This is attributed by the researchers, who are based in the University of Mannheim in Germany, to a phenomenon called psychological distance, which drives consumers to concentrate more on the product’s benefits instead of its price. It occurs when evaluating a product at a distance during the pre-launch period. When the product is released, they often find the price to be steeper than they previously thought.
The recommendation of the researchers? Announce the exact price of the product well in advance of the targeted launch date. That way, your potential customers become accustomed to the price before you release the product.
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According to a study published in the Journal of Consumer Research, once a product’s future release has been announced, the buying public will look at the strength (or lack thereof) of the brand and the conditions of the market targeted by the product. All the eyes of your prospective buyers are fixed on your branding.
Once the product is already made available to the marketplace at the post-launch phase, consumers then perform minimal research on the product and tend to evaluate the product based on their perceptions of the company.
For startups introducing new products, success of a product launch campaign of the marketing campaign depends on when consumers heard of the product. If you own a startup, build a sense of urgency in the months or weeks prior to your product launch. Your customers will be comparing your goods to that of your bigger competitors.
Also psychologically reassure your target market by focusing on your brand’s reputation. Be sure to be viewed as a trustworthy company.