ccording to a new research, conducted as a part of the Apollo pilot project (a joint initiative of Arbitron Inc. and The Nielsen Company) which is tracking media and shopping habits observed in consumers; television ads make the consumer less prone to being sensitive to price differences, especially when they have been frequent buyers of commodities belonging to a particular category.
In the course of the project, consumers were divided into various categories, keeping in mind the nature of purchases they were willing to make. It was observed that people slotted in the heavy purchasers category were least susceptible to be affected by change in prices as compared to those in the medium and light category of purchasers, this, owing to exposure to ads on television. Viewed television commercials on a single or even two occasions reduced price sensitivity. The higher the exposure to commercials the lower sensitivity to price change. After seven to eight viewings of a commercial, behavioural changes with regard to price sensitivity were observed to be minimal. The brands involved in testing have not been disclosed. Research conducted while zeroing-in on a marketing mix has also on earlier occassions indicated that price sensitivity can be altered as a result of advertising. Companies backing the Apollo project claim that soon similar tests will be conducted to gauge the effects of advertising through other media as well.... more