How to Win Customers and Influence Browsers
Quite openly declaring itself "the creator of 'Entertainment Shopping' on the internet," Swoopo is dedicated to enticing customers with what appear to be irresistibly tempting bargains. Since launching on German television in 2005 as Telebid, Swoopo has evolved into an auction website available to customers in the U.S., Germany, Britain, Spain, Austria and Canada.
Unlike some other shopping sites, Swoopo has a formula that appears to offer customers extremely low prices while simultaneously ensuring that the site's owners get a hefty fee for their services.
Put simply, each time someone bids - and this can be in increments of as little as a penny - the bidder pays for the privilege (60 cents on the American site). So customers are paying twice if they win the auction but are paying to bid even if they don't eventually get what they're after. One example cited by The Washington Post is a MacBook Pro sold for $35.86. According to the paper, "Swoopo lists its suggested retail price at $1,799. But then look at what the bidding fee does. For each 'bid', the price of the computer goes up by a penny, and Swoopo collects 60 cents. To get up to $35.86, it takes a stunning 3,585 bids -- and Swoopo gets its fee for each. That means that before selling this computer, Swoopo took in $2,151 in bidding fees." Journalist Mark Gimein at the Post declares himself addicted in spite of doing the math.
Another site, www.very.co.uk, specializes in tempting potential customers by laying on opinions about the suitability of potential purposes. Combining celebrity points of view with those of a panel of "real" shoppers, the site's magazine format complements its sales efforts to help consumers with the difficult task of decision-making. "Very" describes itself as a network, a place where people can swap ideas and opinions, knowledge, experiences and advice with celebrities, experts and "people just like you."
More than simple shopfronts, these two sites have devised ways to entice customers to feel good about spending their money. What better reason can there be?
Discussion questions: What is your reaction to the different formats used by Swoopo and Very? What do you see as the strengths and weakness of each in attracting consumers and moving them to purchase?