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Rajan Sambandam

Can Ads Make TV Better?

Posted by on in Rajan Sambandam

Back in the stone age when DVRs did not exist, everyone had to watch TV programs when they were broadcast. Many people still do and so can’t avoid commercial interruptions. Those who record their programs avoid commercials by fast forwarding through them. Why? Because commercials are usually annoying and it is more enjoyable to just watch the show, right? Maybe not, say some researchers. They argue that there is reason to believe that people’s enjoyment of certain shows will decrease over time and commercial interruptions can actually make the show more enjoyable. Research has shown this happens with many positive experiences such as enjoyable scenery, ice-cream, music and even winning the lottery. So, why not with TV watching?  

I know what you are thinking. This sounds like a joke, but it is not. There really is a What-The-Hell Effect and we will get to it in a moment. First let’s talk about the Denomination Effect. Let’s say you are leaving home and want to carry some cash with you. You have the choice of either taking a $20 bill or $20 in smaller denominations. Should this make any real difference to how much you are likely to spend? After all $20 is $20, right? Not quite. Turns out the denomination in which money is carried does have an impact on spending behavior. Two researchers recently published an article detailing the effects and we’ll take a closer look at it here.

Does a person’s physical attractiveness influence their selection of romantic partners? Yes, of course. There is anecdotal and research-based evidence to support that. But there are several related questions that arise and require urgent answers. A group of researchers set out to find some answers using data from the website HOTorNOT.com and some common analytical techniques. Admittedly, this is not the most representative sample in the world, but for this purpose is quite acceptable. Let’s take a look at the questions and the answers.

Is $2.99 the same as $3.00?

Posted by on in Rajan Sambandam

How often do we as consumers see “just below” retail prices such as $2.99 or $29.99 or $299.99? All the time, right? It seems like we rarely ever see “round prices” for anything. The obvious reason why retailers and others do it is because of the belief that the left digit dominates and people are likely to see say, $2.99 as being significantly more than a penny less than $3.00. There are two issues here. The first is whether people actually perceive a difference and the second is whether it has an effect on what they purchase. Both of these issues can be studied experimentally and that’s what two sets of researchers did.

Recent comment in this post - Show all comments
  • Ed Olesky
    Ed Olesky says #
    Thank you for this! I was thinking it might be a myth. Good to know that some research has been done. I have always rounded up, as

Pizza: Round or Square?

Posted by on in Rajan Sambandam

Let’s say you are following your dream to kick your day job and start a pizza joint. Many consequential decisions need to be made, but one that will certainly affect your production and display process will be the shape of the pizza: round or square? You might have personal preferences, but how will your customers see it? Given the same size, which shape will be seen as a better deal? Questions on package shapes often arise for consumer goods, but while pizza is ubiquitous, its shape has not been systematically investigated until recently. The broad area of inquiry is called psychophysical biases in area comparisons and three researchers considered the shape problem to figure out what a pizza parlor should do.

 

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