Store atmospherics are used to create emotional effects that ...

[jasdeep_brar]

Store atmospherics are used to create emotional effects that enhance the probability of purchasing.
 
 Indicate whether the statement is true or false

Question 2

You are opening an informal dining establishment in your hometown, a novel type of buffet-style eatery offering a wide variety of breakfast and lunch choices 24-hours a day, called Anytime Cafe. As part of your initial promotions, you are considering a couponing effort as well as a frequent-diner program. Briefly describe a couponing effort for this business, naming several advantages and disadvantages. Then describe how a frequency program would work for this establishment, including any advantages and disadvantages.

[fur]

Answer to Question 1

True

Answer to Question 2

A couponing effort might involve placing coupons in local newspapers, regional magazines, sales flyers, or at other local business establishments. In this case, coupons might allow patrons dollars-off deals on certain items, buy-one-get-one-free meals, special discounts on certain days of the week, free soft drinks or desserts with meals, etc.

There are a number of advantages. Anytime Cafe can give a discount to a price-sensitive consumer while still selling meals at full price to other consumers. Many customers are competitive-brand users, so the coupon can induce brand switching from other restaurants. It is also an excellent method for stimulating repeat purchases. And it can get regular users to trade up to a more expensive menu item or meal. Finally, Anytime Cafe can control the timing and distribution of coupons.Disadvantag es include the time, effort, and expense involved in placing and redeeming coupons, as well as the possibility of fraud or misredemption.

A frequency program is all about rewarding the long-time customer. There are many advantages. It allows patrons to earn free menu items, meals, or gifts through repeat business. In this case, the consumer would probably receive a free meal after the purchase of a determined number of meals. This is an excellent tool to build brand loyalty with one's most lucrative (repeat) customers. The disadvantage is that these programs need to be carefully monitored, with time and attention paid to keeping records and awarding premiums. There is a risk of consumer alienation if the program is changed or discontinued. As airlines discovered with their frequent-flyer programs, there can be considerable fallout from consumers if the rules or quotas are changed.