Teens talk brands, a lot

If you listen in on teenage conversations you may hear a whole lot of brand names. That's the upshot of a survey from The Keller Fay Group that surveyed over 2,000 teens and found that members of Generation Y have 145 conversations a week about brands. That's  twice the rate of adults. Word-of-mouth brands for teens include youth-friendly labels such as  iPod, American Eagle and Nintendo, along with brands you might not think of as teen-friendly such as Dr. Pepper and Chevrolet. Media and entertainment is the top category for brand naming, with three-quarters of teens surveyed sharing information about their favorite movies and music.

Teens are also talking about marketing, often because they encounter marketing messages through social networking sites. They are more likely to discuss brands online through texting, e-mails, chats and blogs than adults are. Most of the brand talk happens face to face but 19% of teen word-of-mouth mentions happen online as opposed to just 7% for adults.

For parents, all this brand chatter might not be welcome news, as brand talk leads to requests for specific products. While teens referencing brands isn't really new, what is new is the fact that advertising is coming at them from more sources than ever and is often more fluidly integrated into their entertainment. With the increasing proliferation of viral marketing, it seems that teen exposure to and discussion of brands can only increase.

Retailers seek to define good customer service

What makes good customer service? The Dallas Morning News reports that in a world where the average retailer has to compete with online businesses and a wider variety of stores offering better deals, customer service can the one thing they have some control over in order to lure buyers to their stores.

Another very important reason that retailers are fretting over consumer happiness is that today's angry customer can do more than just tell a couple of friends: they can go online and tell thousands. They can rate stores and restaurants on services like Yelp.com, chronicle their hotel experiences on TripAdvisor.com or even take their woes to the Consumerist blog which has featured particularly egregious cases of bad customer service.

Defining good customer service seems to be the tricky part. More people seem to know when they get bad customer service as opposed to when they get great customer service. It can be a variety of things for different types of stores as well as for different shoppers.  At more high-end stores, customers might expect a more interactive experience with the salespeople but at other retailers, customer service can be as simple as a swift and efficient check out or the things you never really think about like clean restrooms and well-stocked shelves.

How do you define good customer service? For me, it is often about service and more about problem solving. Like many consumers, I do my research before going to stores so I often know what I am looking for and where to find it. But when I have a question or there is a problem with my purchase, finding a person who is willing to help me find a solution makes all the difference.

Kids shopping for back-to-school luxury

Ah, back-to-school time. It used to just mean a new notebook and a fresh pair of sneakers, but today's teens and pre-teens have increasingly high-end tastes when it comes to shopping for the all-important first day of school.

Many of the mid-level and discount retailers that have been suffering this year due to consumer spending cutbacks have their hopes pinned on back-to-school. Meanwhile, luxury brands have been reporting increased sales; $150 billion last year.  The strategy some parents are taking to deal with the their teens' quest for luxury goods is to spend more on the accessories such as the designer handbag or shoes, while buying more basic wardrobe staples at retailers like Target and Wal-Mart. Some teens also use the money from summer jobs to boost their back-to-school budget.

And then there are the gadgets.  According to the National Retail Federation’s 2007 Consumer Intentions and Actions Back-to-School survey, the electronics category will see the biggest increase in sales this year, with families spending 13 percent more on electronics than last year. Cell phones, laptop computers and iPods are among the most craved items. Another group, ShopLocal, surveyed 500 preteens and found that kids are as savvy about brand names of electronics, with 83% asking for iPods by name and 64% asking for the Nintendo Wii by name.

Related: For information in buying electronics as well as other important back-to-school tips check out our comprehensive guide.

"Market research reveals the "nine types of consumers

I always love these articles on how advertisers and marketers view consumers and general trends. We are forever being broken down into new categories. "Soccer moms" and "metrosexuals," it now appears, are old labels.  The marketing firm Consumer Eyes has identified nine new ones, in a new book called  "Karma Queens, Geek Gods, and Innerpreneurs" by Ron Rentel and Joe Zellnick.  You can download the PDF from an article in  Advertising Age but here is the basic breakdown:

1. Karma Queens:  These are the baby boomer ex-hippie women who are susceptible to quirky design, body-mind-spirit advertising and companies that have a woman-to-woman connection.
2. Culture Crossers: These trendsetters cherry pick their favorite things from a variety of continents and sources like their idol Gwen Stefani.
3. Denim Dads: The modern stay-at-home dad is a music-loving guy who is also handy around the house.
4. E-Litists: These are those who are interested in green products in a moderate way. They shop at Whole Foods, drive a Prius and idolize Al Gore.
5. Ms. Independents: These are the power single women with disposable income and a taste for the finer things.
6. Innerpreneurs: Brainstorming entrepreneurs who seek brands that are involved with causes.
7. Geek Gods: Early adopter geeks, the ones who have the latest hot gadgets.
8. Parentocrats: The obsessive parents, the multitasking, busy couples seeking the best products for their children.
9. Middlemen: The slacker men, ages 21 to 35, who are working dead-end jobs and are passionate about video games.

I can see myself in a couple of these categories (a little bit karma queen, a little bit innerpreneur, etc.) so I don't think these are hard and fast separations. Also I don' think these list covers everything; it seems to be focused on the 20-50 age range, leaving out the teens and the deep-pocketed retirees. But if you find yourself looking at a patchouli-scented, hemp-based iPhone case the next time you're shopping for gear, you'll know just why the marketers thought you'd want it.

Stores study shopper body language to maximize sales

Grocery stores and food manufacturers are always trying to attract shoppers to new products. Ever wonder how they find out how to place things so that you might buy them? An article on the Nielsen web site gives a little insight into that question with the results of a Shopper Modality study that chronicles the habits of shoppers and ways marketers can maximize sales by understanding the shopping mentality. According to the study, most of the time shoppers are in "grab and go" mode, but there are windows of opportunity they call Delta moments, when we're open to external stimuli. They break us down into four basic categories: the auto-pilot shopper, the buzz-activated shopper, the variety-activated shopper and the bargain-activated shopper.

Foods also fall into these categories. In the case of auto-pilot items such as mayonnaise, coffee,  bottled water and margarine, we tend to buy the same brands in the same way each time. Put our coffee in a different place or slap a different label on it and sales might suffer. Buzz categories such as chocolate and sports drinks are ones where shoppers are more vulnerable to advertising hype. The variety category is where marketers really have a chance to tempt us, when it comes to foods like salad dressing, frozen snacks and cereal, we are actively cruising for something new to try. In this category, the challenge for marketers is to keep us tempted with the latest and greatest by adding new flavors and other options. And according to the marketers, we're looking for bargains on items like canned tuna, canned fruit and pasta sauce.

All of this information may not change the way you shop but peeking behind the wizard's curtain a bit does let you know why you might be attracted to something you don't really need. And at  least now when you see the umpteenth version of Life cereal, you'll know what the marketers might have been thinking. (And if you want to beat them at their own game, be sure to read our shopping tips, here.)

Supreme Court lets manufacturers set minimum prices

Decision reverses 1911 ruling — what does it mean for consumers?

Consumer advocates say that a recent landmark U.S. Supreme Court decision will drive up prices for many products that now are heavily discounted on the Internet and elsewhere. The big question, they say, is by how much.

By a 5-4 vote on June 28, the court reversed a nearly century-old decision that made it illegal for manufacturers and merchants to agree on retail prices. Under the new rules, the legality of so-called retail-price maintenance agreements will be judged on a case-by-case basis, depending on whether they are or are not found to be anti-competition.

By reversing the 1911 Supreme Court ruling that created the ban, critics say, the court is paving the way for higher prices and jeopardizing discount retailers who have invested millions of dollars under the well-established ruling.

Manufacturers “are not going to wake up tomorrow morning and jack up prices,” said Mark Cooper, director of research for the Consumer Federation of America (CFA), which had filed a brief with the court supporting the ban (Consumers Union, the publisher of Consumer Reports, is a member of the CFA). “It will spread over time.” He accused the court of "siding with the big corporations at the expense of the public and competition."

The five-member majority included the conservative justices and Justice Anthony Kennedy, who is viewed as a moderate conservative and often is the swing vote. The four liberal judges dissented.

Among others who asked the court not to overturn the 1911 decision were 37 state attorneys general, the American Antitrust Institute, and Burlington Coat Factory, a nationwide discount retailer.

Those who supported lifting the ban included the Department of Justice and Federal Trade Commission. In the 1990s, Congress prohibited both agencies from using any of their funds to overturn the rule, a provision that has since expired.

In a dissenting opinion, Justice Stephen G. Breyer wrote that swallowing up “a century-old precedent, potentially affecting billions of dollars of sales” could end up costing a family of four $750 to $1,000 annually.

Even Justice Anthony Kennedy, who wrote the decision for the five-member majority, acknowledged that retail-price maintenance agreements, a form of so-called vertical price fixing, tend to result in higher prices. But he said that they also can produce consumer benefits, such as better service. He said that the court’s ruling would not lead to the elimination of discounting on the Internet or elsewhere.

Luxury department stores court customers with perks

Perks can sure make a difference in your shopping experience. While many of us choose a certain credit card or grocery store based on the  ways that they reward regular customers, high-end department stores have created special programs to reward the really big spenders. Retailers such as Saks Fifth Avenue, Neiman Marcus and Barneys New York offer their best customers special perks such as gifts cards, deep discounts on travel and entertainment packages and invites to special events. Rather than simply giving customers money back, they try to offer exclusive products and services that they feel will appeal to their high-end clientele. Psychologically, these programs also make the customer feel special because they are offered services not available to the average consumer.

Can you save money on these programs? You might be surprised. This Forbes story points out that spending $2,000 at Bloomingdale's ups your Insider status so that you earn $60 in store gift cards and earn special credits like discounts on cruise programs; spend the same amount with Visa Extra and they only knock $4 off your bill. The only catch is that if you have to spend the bonus money at Bloomies. As the competition between stores heats up, these programs may well become more enticing. Nordstrom introduced a new program in April that lets shoppers earn two points for every dollar spent at the store and on Nordstrom.com. Earn 2,000 points and receive a $20.00 Nordstrom gift certificate. Not as impressive as the Bloomingdale's gift but the Nordstrom Signature card also gives access to their concierge service.

Our take: Be sure to read the fine print before joining any rewards program. Sure, the retailer may want you to feel like an elite customer. But that doesn't mean there aren't lots of strings attached to those hefty bonuses. Here are some tips to help you navigate some of the more obvious pitfalls.