ETD: 808 Thank you Sears and others; Why People Buy Things They Don't Need Update; Booming Self-Service Shopping to Top $1 Trillion in 2007

[E-Tailer's Digest]

  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0808              August 10, 2004
  George Matyjewicz, Moderator         mailto:georgem at gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
==================================================================
   CONTENTS

  [1]  Greetings
  [2]  Thank you Sears and others
  [3]  Why People Buy Things They Don't Need Update
  [4]  Booming Self-Service Shopping to Top $1 Trillion in 2007

==================================================================
  [1]  Greetings.
==================================================================
Hi All:

List member Phil Glowatz has an update on the "Thank You Sears" post from 
last issue.  Seems there are a number of other companies who do the 
same.  And now that the Olympics are beginning, there are companies who 
support that also.  Can you imagine if every company gave back 10% of their 
profits to worthy causes?  (I'm not saying that Iraq is a worthy cause).

Pam Danziger has an update to her famous book "Why People Buy Things They 
Don't Need."  Interesting stuff.

Have you tried the self-service checkouts at some of the retailers?  That 
segment of the market is expected to top $1 trillion in 2007!  I have mixed 
reactions with self-checking.  On one hand, I like the ability to get out 
of a store quickly.  OTOH I resent the fact that I am doing their work and 
reaping no benefits.  I am looking forward to that automatic supermarket, 
where each product is scanned as it is put in the shopping cart (buggy for 
our Southern members).  Then you plug it in and it automatically checks you 
out.  Remember the Special Report "Retailing in 2023" from last 
year?  http://www.etailersdigest.com/resources/Specials/Retail-2023.htm

Tell us about your business which will remain  for posterity at 
our  "Members: Who Are You?" 
site.   http://etailersdigest.com/resources/members/index.htm And we have a 
form there for you to tell us about you.  As I said when I first proposed 
this idea, we have "known" each other for a long time, yet we often don't 
know anything about each other.   So, tell us who you are and what you do.

Now, let's get to everything for the retailer.

Sincerely


George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com

==================================================================
  [2]  Thank you Sears and others
==================================================================
Jan Owens wrote...

 >I assume you have all seen the reports about how Sears is treating its 
reservist employees
 > who are called up? By law,  they are required to hold their jobs open 
and available, but
 > nothing more. Usually, people take a big pay cut and lose benefits as a 
result of being
 > called up...Sears is voluntarily paying the difference in salaries and 
maintaining all benefits,
 > including medical insurance and bonus programs, for all called up 
reservist employees for
 > up to two years. I submit that Sears is an exemplary corporate citizen 
and should be
 > recognized for its contribution.
 >
 > Suggest we all shop at Sears, and be sure to find a manager to tell them 
why we are
 > there so the company gets the positive reinforcement it well deserves.

I don't much like singling out one company out of many for something either 
positive or negative, because I feel someone usually has an axe to 
grind.  In this case, the originator of the e-mail is either trying to 
promote Sears or is ignorant of the dozens of other major firms that are 
doing the exact same thing.  That list includes Abott Labs, AMD, Apple, 
Bank One, Wal-Mart, Citigroup, Prudential, Dell, RJR, Frito-Lay, GE, Tyson, 
and many others.  View the info 
here:  http://www.coldfury.com/HF/index.html#anchor

"Pass it on" e-mails continue to be one of the more obnoxious intrusions on 
the Internet.

Phil Glowatz

+++ [Moderator's Comments] +++
Thanks for the update Phil.  We should all thank these companies, and any 
others like them.  One of my favorites is Home Depot who supports our 
Olympic athletes.  They offer flex time for the athletes working at Home 
Depot, so they can train while working.  And, when they are at the 
Olympics, employees are paid in full.  And they honor the athletes in each 
store where they work.  Very nice.

George

+++ Next Post +++
I went to Sears site (first time there) to make a purchase and send a 
supportive message and found it to be loaded with great bargains and 
services that would allow for every person to find something they could use 
or give as a gift.

Then, I noticed that they have an affiliate program whereby we can put a 
link on our site and not only support them but earn a little commission, too.

Plus, you can send flowers, gifts and even register for wedding, baby or 
other celebrations. I can really get into that area.

So it is mighty easy to say "Thank You" to Sears and make your purchasing 
experience something very rewarding all the way around.

It was a great bit of news and started my day with a smile.

Patty Sachs
www.pattysachs.com
www.InstantPhotoFrames.com

==================================================================
  [3]  Why People Buy Things They Don't Need Update
==================================================================
  "Why People Buy Things They Don't Need: Understanding and Predicting 
Consumer Behavior (Dearborn Trade Publishing, July 2004), has been updated 
and is now in paperback.    Danziger reveals her findings.

The book details what discretionary items consumers are buying now, as well 
as what they will be buying in the future.  Having meticulously profiled 
customers through surveys, interviews, and focus groups, Danziger contends 
that shopping today has fundamentally changed.  It is no longer about the 
item to be purchased, but the experience.  Therefore, all types of 
retailers ­ whether they sell directly through their own shops, via other 
stores, or on the Internet ­ must learn to create an experience that 
connects with customers’ needs, communicate that experience, and use it to 
attract shoppers.

Businesses should:

o Touch the emotions of their customers ­ “After hundreds of hours spent 
talking to and interacting with customers in a research setting, I know 
that emotion is at the foundation of people buying things they don't need.”

o Give customers rational justifiers so they will have permission to buy ­ 
“Emotions may lead, but justifiers close the deal in the subtle commercial 
seduction between a product and a consumer.”

o Appeal to customers who are in motion ­ “The most recent and most 
frequent purchasers are the best prospects for buying again.  Marketers 
have to think about ways to cross merchandise products creatively.”

o Make customers feel like winners every time ­ “Customers shop to satisfy 
emotional needs and longings, and they will want their shopping experience 
to provide emotional satisfaction as well.”

o Help your customers fulfill their fantasies ­ “When consumers talk about 
why they buy, they often explain it in terms of fantasy 
fulfillment.  Businesses must tap into those consuming fantasies, 
understand them, and play back the fantasy imagery in marketing 
communications.”

o Entertain, entertain, entertain ­ “An educated mind is an active mind, 
and an active mind needs mental stimulation.  Marketers and retailers need 
to plan to satisfy this need.”

Pamela Danziger
www.unitymarketingonline.com

==================================================================
  [4]  Booming Self-Service Shopping to Top $1 Trillion in 2007
==================================================================
Consumers racked up nearly $128 billion in sales using self-checkout lanes, 
ticketing kiosks and other self-service machines in 2003, according to a 
recent study by IHL Consulting Group.  The study also found that by 2007 
demand for self-checkout systems will increase the value of transactions to 
nearly $1.3 trillion.

“The revenue generated by self-service transactions should continue this 
pace of growth in the coming years, says Greg Buzek, president of IHL 
Consulting Group. “We expect to see expenditures made at self-service 
kiosks to rise by about 73 percent this year and 88 percent in 2005.”

In the market study, IHL determines that of the nearly $128 billion in 2003 
spent at self-checkout systems, ticketing kiosks, check-in kiosks and food 
ordering kiosks, about $61 billion was attributable to credit, debit and 
smart cards.  The study reflects on previous IHL reports stating that 
self-checkout installations at Kroger and Albertson’s suggest that anywhere 
from 15 percent to 40 percent of the daily transaction volume and 12 
percent to 30 percent of the daily dollar volume of these stores are being 
handled by self-checkout machines.

IHL suggests that by becoming more Internet savvy, consumers have become 
more comfortable with e-commerce and purchasing products online, making for 
an easy transition for customers as e-commerce technology moves into brick 
and mortar stores. “Their time has also become more valuable and limited, 
and self-checkout is one way they can speed along their buying experience,” 
Buzek said. “Retailers and other businesses are finding that self-service 
kiosks can significantly increase customer loyalty, as well as customer 
satisfaction.”

http://www.imakenews.com/edgellris/e_article000288186.cfm?x=b3n95PP,b1PJcv1q

==================================================================
  Links to follow
==================================================================
GAP Enterprises, Ltd.                           http://www.gapent.com/
Sarbanes-Oxley 2002                     http://www.sarbanes-oxley2002.com
E-Tailer's Digest                       http://www.etailersdigest.com
ETD Archives:                           http://topica.com/lists/etailer/read
Prior to 29 Dec 
1999                    http://etailersdigest.com/archives/index.htm
Marketing Your Web                      http://www.gapent.com/myweb/
Automated Press Releases                http://www.automatedpr.com