On Travel: Lower Price vs. Higher Quality

Even in this economy, the cheaper option doesn’t always score high on preference measures.


Hi, I’m Cathy, an Analyst here at Cymfony.  I take the lead on technology clients, but with my marketing background in travel, I recently had the opportunity to work on a study for a travel client and came across an interesting angle on consumer sentiment towards price points. 

Anyone can tell you that consumers are becoming more price sensitive than ever in these economic times.  Across common goods and services, “budget” brands and wholesalers are gaining traction; “premium” brands are struggling.  In social media, positive sentiment is stronger for budget brands. “Value” is the most resonant discussion theme in message forums, indicating prioritization of cost over inherent product attributes.  

Does this mean all companies should work towards significantly lowering price points to compete in the marketplace?  The answer seems to be, “Not necessarily.  In social media, “premium” brands equated with high quality AND high price still trump “budget” brands when it comes to measures of consumer preference.  Looking closely at what people are saying, customers still strongly prefer a better product or a higher quality experience in spite of tough times compounding the price barrier.  While discussion suggest that the pragmatic mind gravitates to cost as a priority, many posts indicate that raw emotions crave goods and services of the highest quality.  Clearly, there is opportunity to tap emotions that are not “selling out” to cheaper alternatives.  

Consumers are price-watching across the board but have their eagle eyes on premium brands. Furthermore, conversations indicate that they are more keen on opening the wallet if they believe they are getting a sweet-ENED deal on a better product.  We see statements like “I’ve tried them.  It was more expensive but I had a good experience, so when there was a price drop, I immediately took advantage” or “I heard good things about them, so I’m just waiting for a discount.”  An itty bitty savings can potentially multiply desirability for a premium product (more so than a huge discount on a low end product) and push the consumer over the edge to close the sale. Savvy marketers believe this in their gut. Now social media analysis validates this belief in the voice of the consumer.

Posted by Cathy Buena on June 5, 2009 at 02:50 PM | Permalink | Comments (0) | TrackBack

Cymfony's Super Bowl Analysis is a Double Award Winner!

AMEC_Awards_logo-[Converted]  Pardon me while I toot our horn and go blatantly hard sell for one post!

I'm pleased to announce that the Association for the Measurement and Evaluation of Communications recognized our Super Bowl Advertising Audience Impact Report with 2 awards!

First, we took the Gold in the category "Best Use of Measurement for a Single Event". The award judges cited our combination of traditional and social media as a "benchmark for the future" and praised it as "an intellectual piece of work" that "had real value for advertisers".

In fact, they liked it so much the judges also awarded it Grand Prix -- Innovation Award. In explaining why we were selected for this award too, the judges said it was a "ground-breaking analysis" and we earned "Top marks for the idea and the execution"

Thanks, AMEC! We are honored!

PS. If you are with a brand that is advertising on the Super Bowl, or an agency for one of those brands, we are offering this service again this year! Come to the Super Bowl page of the Cymfony site to learn more.

Posted by Jim Nail on November 25, 2008 at 05:08 PM | Permalink | Comments (0) | TrackBack

Super Bowl Ads -- It's Not About the Game!!!

A WSJ article today says that many long-time advertisers are wondering if, in this tough economy, they should invest $3 million for :30 seconds on the game. The key is not the game: they key to ROI is the PR activity before the game.

Come to my ARF webinar tomorrow -- "Effective PR and Word of Mouth Strategies to Maximize a Brand's Investment in Super Bowl Advertising" -- to learn more but here are the topline findings from two years of analysis Cymfony has done on Super Bowl advertising:

  • PR adds significant audience. The prospect of reaching 90 million people on February 1, 2009 makes media planners drool. But PR can add brand reach prior to the game: Doritos drove 40 million impressions prior to the 2007 Super Bowl.
  • To get WOM, drive PR. Spurring word of mouth discussion after the game is a key goal -- that's why brands and agencies go to great pains to come up with breakthrough creative. But the brands that are successful in post-game are consistently the brands that get the most pre-game coverage in traditional media.
  • Social media discussion is a good proxy for likeability. For the 2008 Super Bowl, we collaborated with our colleagues at TNS who conducted a classic ad likeability research survey and compared their results to the "favorability" of social media posts. The same10 advertisers were on the top of both lists. While the social media audience displays some unique characteristics, their opinions accurately reflect the broader population.

So GM, Fedex, Monster, Pedigree, and others who are on the fence: tune in to my webinar before you make your final decision!

Posted by Jim Nail on November 11, 2008 at 12:30 PM | Permalink | Comments (0) | TrackBack