Current Topic: Strategy

When consumers adore a brand, they often give it a nickname—from "Rollie" for Rolex to "Beemer" for BMW. Marketers are eager to embrace this consumer-driven brand love and incorporate these nicknames in their marketing strategies to appear more relatable. This tactic is called “nickname branding” and marketers expect positive results from using it. But do brands benefit from this tactic, or does it backfire? While it might seem like a clever way to connect with customers, new research suggests it could have the opposite effect.

Think about the Ferrero Rocher chocolates. Almost everyone recognizes the shiny gold foil that wraps the chocolate. This packaging doesn’t just wrap the chocolates, it makes it look luxurious and special. Unwrapping the small round, rocky-like chocolate, creates a sensory experience even before you take the first bite and taste all the layers of flavor of this small chocolate. Personally, as a chocolate lover, just writing about it has me craving one right now!

Recently, I was at the well-known Dutch supermarket, Albert Heijn, using the self-scan kiosk to pay for my daily groceries. As I tapped my credit card against the terminal, no sound came from the device. Confused, I thought my payment hadn’t gone through, so I tried again. It suddenly dawned on me that the payment might now be deducted twice. Thankfully, this wasn’t the case. The next day, I made another grocery purchase, and this time, the terminal made a sound. I immediately realized how comforting that simple beep was—it reassured me that my payment had gone through. And I’m not alone in this experience. Research has shown that the beeping sounds from the cash register, signaling that the payment was received, significantly boost customer satisfaction (Reynolds‐McIlnay & Morrin, 2019).

Picture this: You're wrapping up an online shopping session, with the mouse hovering over the checkout button. Suddenly, you notice a little green leaf next to one of the delivery options. "Huh," you think, "that's new." Without much thought, you select it and complete your purchase. Congratulations! You've just been "nudged" into making a more sustainable choice. But how did that happen, and why should marketers care?

Introduction

Today, more and more retail companies are recognizing the need to create the ultimate customer experience in-store. Neuromarketing research has made considerable ground in investigating how customers behave and make purchase decisions based on their experiences. Notwithstanding biases from cultural factors, physiological states, and spending power, results from neuromarketing consumer research have given indications of what elements are likely to stimulate positive thoughts and behavior among consumers. Coffee shops all over the world are some of those that have gained from such studies.

The business of coffee is a multi-billion dollar industry all around the world. Both international brands and local brands have thrived in their own spaces and communities. Experts agree that it’s more than just the beans and the brews that bring in customers and grow loyal patronage. It’s a combination of different factors including the store atmosphere, employee service, drink quality, pricing, and past experiences that delight customers and keep them coming for more.