Thursday, April 9, 2009

If the economy gives you lemons, open a lemonade stand



Researchers from the Stanford Business School recently published the results of an experiment conducted with a children's lemonade stand. And the results were conclusive.

Three signs were used to advertise. One said, "Spend a little time and enjoy C&D's lemonade." Another read, "Spend a little money and enjoy C&D's lemonade." And the third sign read, "Enjoy C&D's lemonade."

The sign that mentioned time attracted the most customers and the most money. Fourteen percent of passersby stopped to buy and spent an average of $2.50 in response to this sign.

Only half that volume, seven percent, bought when the "Spend a little money" sign was displayed, and the average amount spent per glass dropped to $1.36.

Conjuring up a personal connection to an experience versus a promotional message focused on cost is more likely to resonate with consumers and produce sales.

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