RETAIL AND THE POWER OF RELATIVE BUNDLING

April 13, 2010 at 12:33 pm Leave a comment

I have been reading Dan Ariely’s Predictably Irrational for sometime now and recommend you read the same. So, in true Ariely fashion, lets start with an experiment. Fill up the blanks below

1. Tom and _______

2. Salt and ________

3. Fish and ________

I expect you had no issues answering the above (Just in case you did, answers are jerry, pepper and chips). Have you ever wondered why do things work well when clubbed together. This is because you, the customers can see the bigger picture. A mannequin displays the best combo of shirts and pants so that you can see the entire look. Now, let me take you to a typical food supermarket. You will have an entire lane of chips, a separate lane for cola and a separate one for sauces and dips.

The problem here is you are showing the customer separate pictures, how would it be if I could have a lane with racks with the top row filled with chips, the middle one filled with dips and the bottom one filled with Cola. Doesn’t this give you an entire picture of an evening in front of the television eating junk food to your hearts desire. Not a very healthy picture but nevertheless a complete one.

This kind of relative bundling will help with incremental sales of food articles which complement each other. All I need is some supermarket to show interest in this idea, so that I can do an Ariely experiment on this predictable customer irrationality.

Advertisements

Entry filed under: Retail. Tags: , , , .

FROM B2C TO C2B COMPETITIVE EDGE WITH SERVICES

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Buy Our Book

Buy Our Book

Archives


%d bloggers like this: