How to build trust when competitors created skepticism?

  • A company wants to get in to market like air purifiers, detox products, or gas addittives. Its predecessors have created some skepticism with non-performing products, because they are a very ethical company and believe their product does just what it is supposed to do. How would you advise the newcomer to move ahead and buid trust with consumers? What must they do? What must they not do? LinkedIn Question by: Jeffri Epps

First and foremost, you need to do an in-depth research of customers, and specifically try to probe on the effects of competitor communication on them. It’s likely that one of the 3 results might emerge:

  • A – Consumers agree to competitors’ skepticism, and are content with that position, taking actions accordingly
  • B – Consumers are skeptical of competitors’ activities, but have decided to carry on with competition – because of herd mentality or due to no other alternatives available
  • C – Consumers neither agree or are skeptical about competitors’ position / messages – hence are not bothered who offers the products or services

In case of A, it might need further probe on additional factors they are looking for, which are currently not addressed by competitors. Depending on how strong and sustainable advantages these factors are, you may decide to take a course of action

In case of B, you might like to explore ways in which you’re able to present yourself (your product) as something that makes a difference in the attitudes towards the product.

In case of C, you might like to see in what ways the product could be seen – not necessarily in terms of benefits, but in terms of value. e.g. something like “well, you know, people say many things about this, but who cares!!”. But you’d have to really see how the values associate to the brand in the long term.

Long ago in India, domestic TV advertising started going the route of being “also ran” stereotyped communication. After all all TVs gave comparable picture an audio performances. At that time an imported TV was considered much superior, but was not available to 99% of the population! On researching, one brand discovered that actually, an imported TV immediately created an element of envy among the peer circle. this element was capitalized with huge success thru the “Neighbour’s envy; Owner’s Pride” campaign – even though “envy” was depicted with all its negative connotation.

I’m not sure what product category you’re in, but maybe by research, you’d get some insights that truly justify a “negative against the negative” approach, which ultimately could work positive for the brand.

(Please contact me should you need elaboration / clarification) Also Look for Other Answers.

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How to measure emotional value of products and use it for pricing

  • I have been always debating that one of the major part of pricing any product also includes the Intuitive/Emotional/Convenience pricing. I am finding different manners to measure it and then put it into product pricing. Would love to listen to all of you about various ways that you use to incorporate it. LinkedIn Question by: Tushar Vashnavi

In the simplest possible way you can do the following:

  1. Identify brands u r competing with and do a price analysis, keeping all other factors (ingridients, features, technology, etc.) same. Chances are that these brands are able to charge more, due to advertising (building emotional value) or services (adding rational value)
  2. Identify the emotional and rational values being offered by these competitors. Simplest ways to do this is to have a qualitative study among your target customers and validating with a dipstick quantitative survey (~100 respondents)
  3. Using these value factors, test out your brand’s / product’s comparative position among the brands – on a 5-7 point scale. eg brand between brand A and brand B which one you feel offer more convenience? Probably you can do it as a part of the validating exercise stated above.
  4. Finally, depending on your choice of differentiating value vis-a-vis your competition, you can set a differentiating price, again comparing with your competition.

Lastly, many of us have a tendency to “assume” or have a “gut-feel” about putting a price based on an Intuitive/Emotional/Convenience factor, which is good! But even then, it’s always better to have a reality check through at least step 3 mentioned above, so that you’re sound in your judgement.

Also look for Other Answers.

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