Tuesday, January 20, 2009

What the Supermarket Won't Tell You -part2

6. "Our discount cards help us to meet our biggest spenders ..."

Many supermarkets offer loyalty cards that purchases are scanned at the cash savings on specially marked products. But saving money is not what these cards are real. Whenever you use your registration card purchases at stores large databases containing information on their years of purchase. That means they know what they buy every year, how often and when you buy a coupon bearing on their purchases. And using
this information for everything from promoting new products to decide what actions.

More importantly, these data stores to take advantage of customers who buy lots of food on a regular basis. Woolf said that as much as 65 percent of a store's sales are derived from these major buyers, who represent only 12 to 25 percent of its customers. Loyalty card programs to allow stores to serve these people by sending free samples, special offers from other buyers do not receive discounts and structuring as a reward for its regular, expensive trips. "The most valuable customers, you look better, after them," says Woolf.

7. "... But it is not always the best option for big savings."

Stores that use these loyalty programs that I think will save large participants. But that is not always the case: Wal-Mart, which has no such program, undermining the competitors on price, and most of the shops without these programs their prices to match competitors' discount card prices. In many cases, retailers may even be able to offer lower prices than the stores with the development of loyalty card programs, said David Livingstone, managing partner with industry consultant DJL Research. "loyalty card programs to add a spending Store, "says Livingston." And the stores can offer the same deals without the card programs. "

In the end, what consumers to obtain delivery of their data? It depends. According to Stephen Hoch, professor of marketing at the Wharton School of the University of Pennsylvania, the loyalty card discounts actually change prices higher in those without cards. Even the best reward is not always amount to much. Supermarkets have a narrow profit margin of about 2 percent, making it "difficult to supermarkets to offer customers great rewards," says Hoch.

8. Big sales do not mean lower costs for you. "

Supermarkets want to know that tenders. And we use to get bids through the door, through the brochures and advertising discounts. But the key is to make sure not to give too much once you get inside.

How do they do? To begin with, the atmosphere. Supermarkets know the first thing you see when you set foot on the pitch for their shopping trip. If you object to the sale or discounted products close to the entrance, you can create the impression of no real value to be had, if that is true or not, the consultant said Hertel. That is also why the space at the end of the corridors is often used to show a small number of items sold. Stores know that it is likely to buy a bunch of other products, while you're shopping, many of which are not for sale or trade marks, helping to cover the discounts in promotional items. In fact, studies show that supermarkets have been effective in limiting gifts, says K. Sudhir, a professor at the Yale School of Management. "Shops want to create the perception that customers are getting a good deal," he says. "But they do not want everyone to get the lowest prices."

9. "We can take the local production, but not in the market for farmers."

When former software engineer Michael Morowitz of Chicago wants to buy strawberries, wait and wait until the summer to local growers. "Strawberries sent to Chicago in February will never be as good as those grown around June," said Morowitz, who heads the local sugar beet, a Web site about food grown locally in Chicago. As Morowitz, more people are looking for products from nearby farms as a way to improve, fresh foods and supporting local farmers, not to mention reducing pollution from transport. And supermarkets have heard the call-up to the point that Wal-Mart now megaretailer resellers locally grown produce.

But it is not as clear as it seems. On the one hand, there is no agreement on what local media. For example, Wal-Mart is defined as the local production which grew in the same state, but in a great state like California, that does not mean much. Furthermore, it is difficult to find a big number of local farms to meet their needs, and smaller farms can struggle to keep up with a great chain of demands, said Julia Stewart, a spokeswoman for the Produce Marketing Association. In the case of Wal-Mart, some of their local suppliers are the same mass that usually provide their farm products. "It just makes it a positive press release," says Livingston. A spokesman for Wal-Mart says the company works with farms in many sizes and is not opposed to their local farmers from selling their products elsewhere.

10. "We are experts in human behavior."

Marketers know a lot about how to buy and what is likely to make you a lift. For example, the stores have found that buyers are more comfortable staying on the right as they move through a store, said Ron Larson, associate professor of marketing at Western Michigan University. How much difference does it make? According to market research firm Sorensen Associates, buyers moving to the spending
$ 2 more per trip than going the opposite direction.

Avoiding psyched by marketing expert? Know what you want to buy before entering the supermarket. Livingston recommends planning meals for the week and sticking firmly to the list once in the store. Moreover, making the car smaller than contain all items, and pay attention to the old saw "Never shop when hungry."

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