Tuesday, November 08, 2005

Consumer Behavior

When conducting an incentive-based promotion, what gets consumers to respond?

When developing one's promotion it is imperative to remember the following equation: ABILITY + MOTIVATION = BEHAVIOR.

A consumer will typically ask several questions before proceeding with an action driven towards moving forward with the information presented to them online.

For example:
- How hard will I have to work for the incentive?
- What is the reward?
- How attractive is the reward?
- Is pursuing the information worth my time?

The strategy should be focused on the "core product" and not messaging surrounding the promotion.

- Online contests and sweepstakes are designed to create temporary excitement about a product
- Entries are tied to a key action or conversion providing strategic value to the marketer
- Promotions encourage current users to use a product more frequently or to use multiple products. Consumers are often rewarded for their loyalty.
- Viral campaigns are often used to generate immediate buzz and media attention