Monday, November 25, 2019

weather-sensitive products


Does the weather affect product sales? The answer is yes. For example, umbrella sales are much higher on rainy days than on sunny days, and students buy more stationery before school starts. When consumers buy products, they will always consider the practicality of the product, that is, what they need to use at what time. In this process, they often take the weather into consideration and buy relevant useful things in the right weather. The weather determines what consumers eat, what they wear, where they go on vacation, and what products they use. The overall sensitivity of the U.S. economy to the weather is 3.4%.

While consumers take the weather into consideration, producers must also take into account how the weather affects the sales of products, and then change the price of products accordingly to carry out promotion activities in different time periods. In the United States alone, the weather has affected three trillion dollars worth of private businesses. Here are some specific examples:
  • Bravissimo, a lingerie and conversion retailer, finds that its conversion rate rises whenever the sun shines, so it USES real-time weather information to show ads on sunny days. After three months of advertising, their revenues have risen 600% and conversion rate rose to 103%.
  • In Spain, Coca-Cola used thermal-sensitive technology to change the price of vending machines. The higher the temperature, the lower the price of the drink, and the more people bought their drink.
The following chart shows what happens to a product's sales when it goes up or down by one degree Fahrenheit:


References:
http://www.weatherunlocked.com/media/1096/the-complete-guide-to-weather-based-marketing.pdf
https://www.adwordsrobot.com/en/blog/how-weather-influences-product-sales

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