Pitch the Synergy of Multifunction Items

Why would your shopper want a toothpaste that only cleans their teeth when they could buy a paste which also freshens their breath? Why did Samsung Electronics gear up to get into the standalone camera business when combination camera/phone/GPS/gaming devices are available in abundance?
     Well, there’s a variety of reasons. But one answer from researchers at Northwestern University is that although shoppers are attracted to multi-solution products, a number of those shoppers believe such products are inferior in each of the capabilities when compared to single-solution products. The product which promises to be a jack of all trades risks being seen as a master of none.
     Carrying multifunction products has an advantage for you. You can reduce the total of different items you need to have in stock. If you’re out of the toothpaste that just cleans, you could point the shopper toward the one that cleans plus more. But this works out only if the shopper accepts the quality of the combination offering.
     The Northwestern University researchers found that one way to overcome the inferred inferiority is to set a premium price on the multifunction product. The extra cost helps convince shoppers that the product can indeed do more.
     But in a retailing environment where consumers are highly price sensitive, you might choose to take a different approach. Research findings from Singapore Management University and Korea’s Kyung Hee University suggest a technique: Describe to the potential purchaser how well the various functions work together. Instead of focusing on the different capabilities, focus on the added benefits that comes from the synergy.
     The Singapore/Kyung Hee research indicates that this is especially useful with items the shopper considers to have a high level of technological performance. It is more important with smart phones than with toothpaste. In fact, the researchers concluded that at low levels of technological performance, people overwhelmingly preferred the combination products.
     Because cultures vary in the thresholds consumers set for high technology, the value and effectiveness of pitching the synergy differs by culture. Assess what works with your customer base.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more:
Set Healthy Margins on Multi-Solution Products
Notice Customers’ Cultural Aspirations