Study: Price promotions harm retail trade - profiling is the order of the day
«Promotion fever» is hurting the Swiss retail sector. According to a study by the University of St. Gallen, retailers will need to differentiate themselves in the future. This should be achieved by offering added value.
"Actionitis" is damaging the Swiss retail trade. According to a study by the University of St. Gallen, profiling is therefore the order of the day in future. This should be achieved by offering added value. According to Thomas Rudolph, professor at the University of St. Gallen, price promotions would hardly generate any new customers and would not increase the overall demand for goods. The same amount of goods would be sold for less money, resulting in lower turnover.
This trend should be countered by creating a "profile through added value". The added value concepts must be communicated in an emotional, transparent and understandable way. Rudolph cites Nespresso with its strong emotional appeal as a successful added value concept.
For large and complex companies such as Migros with its numerous subsidiaries, it is difficult to establish a clear profile. This is easier for smaller companies.
More than 5,000 randomly selected people in German-speaking and French-speaking Switzerland were interviewed for the study from mid-September to mid-October 2007, providing information on the food, furniture, sports, textiles and consumer electronics sectors.
This trend should be countered by creating a "profile through added value". The added value concepts must be communicated in an emotional, transparent and understandable way. Rudolph cites Nespresso with its strong emotional appeal as a successful added value concept.
For large and complex companies such as Migros with its numerous subsidiaries, it is difficult to establish a clear profile. This is easier for smaller companies.
More than 5,000 randomly selected people in German-speaking and French-speaking Switzerland were interviewed for the study from mid-September to mid-October 2007, providing information on the food, furniture, sports, textiles and consumer electronics sectors.
