Product trial and repeat purchase

Product Trial

Learning objective

• Product trial and repeat purchase: the concept of breaking down ‘sales’ into product trial and repeat purchase and how to maximise repeat purchase through customer loyalty

Product Trial

• Product trial is where a customer samples a product for the first time.

• Can you think of any examples of products that dare us to try them?

• Why does a business do this?

Watch this advert

• Cillit Bang

• This was the opening advert for a new product

• What is the point for an advert such as this?

• What dangers are there with this advert?

TASK: Product Trial

• Why is it so difficult to persuade people to try a new product?

• Think of as many reasons as you can and write them into your book.

Did you get?• Buyers are locked into existing

brand loyalty– E.g. Heinz tomato sauce, or

Marmite• Buyers are locked into earlier

decisions– E.g. If you bought an iphone it

might be too expensive to switch to an blackberry

• Your new business has not yet established its reputation and the purchase maybe seen as a risk

So how do you get customers to trial new

products?• The answer….

– Huge advertising campaign– Clear brand image– Building up a good image through word of

mouth– Go Compare

Repeat Purchase

What is repeat purchase?

• Launching a product is very expensive and not possible if the customers do not buy it again

• Repeat purchase is where consumers regularly purchase a brand

• This continued purchase leads to long standing decisions by consumers to stick with them, known as brand loyalty

How do you attain repeat purchase?

Repeat purchase

The product must meet expectations

It should satisfy the customer needs

It should match your image

Value for moneyIt should match

your ideals

It should make you happy

Brand Loyalty

• A strongly motivated and long-standing decision to purchase a particular product or service

• Copy this definition and then list as many products that you have a loyalty too

Double Whopper, Fries, Coke

• Pg 233

• Q3

• Q2

Extension

• Paddington Bear

• What was the intention of this advert?

HOMEWORK

• A-Z homework Revision SheetProduct trial and repeat purchase