New Marketing: Convince Consumers to Indulge for Their Own Good

By Sean Silverthorne

July 9th, 2008 @ 5:29

http://blogs.bnet.com/harvard/?p=366&tag=nl.e713

As people continue to pinch pennies in a slowing economy, how does the seller of upscale products and services convince them to buy items that are impractical (Hummer), unnecessary (Amazon rain forest excursion),  or expensively luxurious (Lobster of the Month Club)?

The answer is simple. Lay on the guilt.

According to a new Harvard Business Review item When Virtue is a Vice, consumers who forgo indulgences in favor of sensible choices regret their frugality years later. But those who succumb to the Influence of the Immoderate and buy that John Ferdinand bracelet for men or Manolo Blahnik alligator boots for women rarely regret their actions, write Harvard Business School assistant professor Anat Keinan and Columbia marketing professor Ran Kivetz.

And that's why marketers should consider playing up the regret angle when selling high-ticket items.

"Our findings suggest that marketers of luxury products and leisure services could benefit from prompting consumers to predict their feelings in the future if they forgo the indulgent choice. For instance, a travel company might ask customers to consider how they'll feel about having passed up a family vacation package once the nest is empty."

In other words, you will be doing your customers a favor by convincing them to indulge. Chocolate is good for you!

BTW, what luxuries are you unwilling to part with even in the midst of recession? Are you Sex in the City's Carrie Bradshaw, who realized she had spent $40,000 on shoes but couldn't afford an apartment?