Retailers Offer Guaranteed Buy-Back To Garner Fearful Spenders

Retailers have been offering fearful consumers everything from BOGO (buy one, get one) deals and deep discounts in an effort to encourage them to buy. But shoppers remain wary of spending money on big-ticket items (cars, homes, travel, etc.) in an unstable economy and with their jobs in possible jeopardy—so companies that sell these products have had to become very creative.

The marketing strategy that seems to be working now is guaranteed buy-back or financial help with the purchase should the need arise. Some of the companies offering this option are:

• Hyundai: This car company’s “Assurance” program promises that they will make your payments for three months should you lose your job. (Ford and GM quickly followed suit with similar programs.)
• Jet Blue: This airline began offering full refunds on a new class of tickets to attract travelers looking for more flexible flight purchases.
• Virgin Mobile: This cell phone service provider offers a “Pink Slip Protection” program that allows three months of security should you lose your job.
• Minnesota Timberwolves: This sports team is offering refunds on tickets returned before the game has been played.

And, according to the companies, these strategies are working. Hyundai reports sales are up 10 percent from the Assurance program alone; the Timberwolves grew their tickets sales by three times the normal amount.

To read about more marketing strategies like these and the results, click here.

Source:

The New York Times: Sellers Woo Shoppers With Guarantees To Address Layoff Worries