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Random thoughts

We asked people who stay at Four Seasons Hotels whether they would rather have their room cleaned or $10 off the room rate on their next trip…

And they told us! Nearly 7 out of 10 said they would rather have the $10! What does this mean for the hotel industry? What does this mean for the maids who perform the housekeeping services? Good lord!

 

Check out the study — there’s a lot of detail, and we can provide more specifics on request.


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Filed under: Hospitality and Tourism, Uncategorized, , , , , , ,

Is Behavioral Economics Really a Game Changer for Marketers?

Much has been written, and said, lately about the impact of behavioral economics on marketing. Some pay no attention to it, some fear it and some adapt it to their own particular cause. But, in reality, does behavioral economics really change anything?

Read more about this at the CMA Blog. Click here (or anywhere, actually)

Filed under: Behavioral Economics, , , , , , , , , ,

Selling Luxury 2: Superyacht Ownership in the Post Recession Era

Big boats: Offshore finance | The Economist.

This article in The Economist points out the almost sorry state of the superyacht category. only 173 sold last year, down 27 from the year before. This is unfortunate for the makers of superyachts and it is a sign of the times.

More notably, however, is the fact that Roman Abromovich has been reduced to renting out his $660 million boat (including crew of 75) to members of the lumpen proletariat for around $2 million/week.

The article also points out that some superyacht owners send their captains to Tunisia to fill up on cheap gas — the Paul-Allen-Money* equivalent of going to Buffalo to buy gas.

* If you don’t know the expression “Paul Allen Money,” I’m afraid you will have to go to the linked article to find out.

Filed under: Uncategorized, , , , , , ,

Selling Luxury 1: Secret Fears of the Super-Rich

Secret Fears of the Super-Rich – Magazine – The Atlantic.

Two blogs on the super rich in honour of a conversation I had yesterday on the subject of luxury. Luxury is an experience, not a thing; luxury marketing, which is often confused with selling expensive stuff to rich people, is dependent on the ability of the marketer to activate an intrinsic experience in the target’s soul, which is difficult enough, but it needs to be done in such a way as to yield a profit to the marketer. Which is why luxury marketers generally default to doing nothing more than selling expensive stuff to rich people.

The two items below demonstrate the difference — although they both are extreme in the extreme:

0,000 Blancpain 1735

This $800,000 Blancpain stainless steel watch looks, let’s face facts, not much different from your run of the mill $250,000 Patek Philipe or, Heaven Forbid, $6,000 Rolex (or, for that matter, $100 Timex). But, it’s value comes from the intricacy of the manufacturing (it takes a year to make), and I imagine the owner gets a great deal of pleasure in knowing the degree of “complication” he is wearing. This, in my world, is luxury — not for what it is but for how it is experienced. Marketing this requires a subtle understanding of what makes the target tick (sorry, I couldn’t resist!). Compare it with this:

0,000 Crystal Tourbillon

This diamond encrusted watch is by Jacob and Company, and costs roughly the same as the Blancpain (well, it costs $900,000, but what’s a hundred grand between friends when we’re talking about quality?). The value of this is entirely extrinsic (not entirely, I mean it probably has a good enough mechanism that ensures it keeps time, even though it’s probably impossible to actually tell time because of the “design” of the face).  I imagine the person buying this is doing so because it is expensive, more expensive, he might think, than any others (he would be wrong — Vacheron Constantin have a leather strapped watch for $1.5 million in case you were wondering: http://www.powersaversearch.com/content/expensive-watches/2.asp). It is, to him, very publicly expensive and clearly telegraphs this to everybody around him. Selling watches to the person who buys this is simply selling expensive stuff to some guy who can afford it.

Which is the difference between marketing luxury and exploiting the rich!

On the other hand, the rich beg to be exploited, as my next blog shows.

Filed under: Behavioral Economics, Uncategorized, , , , , , ,

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