Wednesday, August 19, 2009

Incentive to buy food no discounting.

Harvard Professor Frances Frei developed a model for “Value” in the service sector and while she spent much time on looking at restaurants I think we can include Grocerants, Supermarkets, and Convenience Stores. Most all food customers participate in all channels. Ms. Frei equation looks like this:
Value = (Price + Quality + Service + Ambiance) + INCENTIVE
If one were to place a value on Price, Quality, Service and Ambiance by sector i.e. Restaurant, Grocery, C-Store and Dollar Store we could see distribution within each sector. So a simple question. What role does Incentive play in your choice to move from sector to sector? If incentive is not a dollar value; what might it be?
1. Speed of customer service or delivery
2. Freshness of product
3. Portion size
4. Availability
5. Limited time offer-sample new product
6. Minimal packaging / or green packaging
7. Lower salt, Lower fat, lower calories
8. Consistency
What is role does Incentive play in your decision to buy food. Most importantly what role does it play in going back to the same location, time and time again? Grocerant program assessments identify, qualify and quantify non-discounting incentives. For more information contact Foodservice Solutions in Tacoma, WA.

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