E25: Holiday Marketing 101 | Purvi Shah | The Business School

Jon Cain:  So much to buy, so little time. The holiday season is such a rush, you might not even notice all the ways marketing influences your shopping habits when you’re looking for the perfect gift. We want you to be an empowered shopper, so we’re here to break it all down with a crash course in holiday marketing 101. We’ll explore everything from AI to nostalgia. Hi, I'm Jon Cain. The WPI Podcast is your home for news and expertise from the classrooms and labs of Worcester Polytechnic Institute. This is the second of two holiday episodes on the podcast. If you missed the first one, check out our feed for a conversation on the research behind gift giving. And we hope you’ll stick around because later in this episode, we'll get nostalgic. You'll hear from some of our listeners about beloved childhood items that they'd love to gift or get this holiday season. Right now, though let’s meet our guide today. Purvi Shah is an associate professor of marketing in The Business School at WPI. She does research on marketing and brand management. Purvi, thanks for being on the podcast.

Purvi Shah:  My pleasure. 

Cain:  Purvi, you're here to help us explore some of the strategy behind the marketing that we see this time of year. Ads are everywhere. Displays are in the stores. People seem to love to hate all the holiday retail marketing and the pressure to spend, but it's unavoidable and holiday shopping is an annual tradition for a lot of us. What do you see as the new trends in marketing for the holiday season? 

Shah: That's a great question, Jon, and you are right. Holiday marketing is something people both anticipate and dread at the same time. What's interesting is that the strategies that retailers are using nowadays are shifting quite a bit from what they have been doing traditionally. So for example, you know, one big trend that we see is starting earlier, you will see that, you know, what used to be a Black Friday in November has stretched into becoming a black October now, and sometimes even earlier than that, for example, like Amazon Prime Days this year were also on October 7th and 8th, we also have, uh, the Target Circle week, you know, which was in the month of October, again from 5th to 11th. So they've all moved earlier into October. And the reason for this is retailers are spreading out their promotions to avoid an overwhelming, uh, response from shoppers all at once. So, their logistics becomes a nightmare at that point when that happens. So, they're trying to spread that out. So that's an operational reason, and the other reason is to capture spending before consumers tighten their budgets closer to the holiday season. Now, we may wonder how does this help shoppers? So, the point here is that if you know as a shopper what you need for the holiday season, say for example, big ticket items like a laptop or a television, you don't have to wait until December. You can track prices early, you can track your deals early. There are many price comparison tools available nowadays, like Honey or CamelCamelCamel, which tracks Amazon prices. So you can track all of those and buy when the price dips early on. And when you do this early shopping, it also spreads out your spending and your budget, so you are not hit with a huge giant bill coming in one month. Another trend is more about personalized marketing. So what happens is retailers use data from your loyalty programs, from your past purchases, even from your online browsing history, with the aid of analytics and artificial intelligence, which is a big hype now. Um, and then they tailor their offers that they think are uniquely relevant to you. Some examples that I can share here is Sephora's Beauty Insider Program, which uses the loyalty purchase information, Starbucks Rewards, they use that and then, you know, make deals specifically for you. So these are certain examples, but then you'll often get emails like, you know, this deal 20% off your favorite brand just for you. So again, that is very personalized marketing, which comes from understanding your purchase history. As shoppers, how can you use this to your benefit is instead of being overwhelmed by offers from everyone, focus on your loyalty programs. Uh, basically, uh, let those programs work for you. That's what I would say. So, you can stack points, you can stack your rewards, get personalized coupons from them, but don't sign up for every retailer's list. Otherwise, it's going to be marketing noise for you. So that's going to be a tough challenge. Another trend that I have seen is a huge emphasis on omnichannel experiences. So, what do I mean by that? Uh, shoppers are blending in-store shopping with online browsing. So, for example, you're checking products and then, uh, checking their in-store availability on the web, and then finally you are heading to the store to purchase them. So, that's one thing or you are buying online and you are going to the store to pick them up, right? So, retailers are making that transition as seamless as possible for you, right? And consumers expect flexibility and speed. These, uh, strategies that retailers are now using really helps towards getting that flexibility and speed. Shoppers can use these tools strategically to their advantage because it saves them time, avoids impulse purchases and ensures that you are not chasing something that's out of stock. Click and collect. That's what they call in strategy. But it's a great way to dodge shipping delays. And then the last thing is social commerce and influencer tie-ins. So they have these strategic alliances with influencers. They have used TikTok, Instagram, and YouTube. All these creators, they showcase gift guides. They have this shop with me videos, uh, limited time product drops also. And this feels less like a traditional ad and more like word of mouth. So it's more credible, it's more trustworthy, and it makes it powerful from the marketer's perspective. Now, for example, TikTok’s Made Me Buy Trend has boosted everything, you know, all the way from Stanley cups to budget-friendly beauty sets. Instagram shops lets you buy straight from a creator's page. As a shopper, you can enjoy the influencer content, but the recommendation is pause before you click buy. The reason is you have to ask yourself, is this really on my list or did I just get swept up in the hype? Sometimes the algorithm makes you feel a sense of urgency that, yes, I need to buy this now when there's really no rush to do that. So, these are certain things, you know, I mean, if you look at holidays overall, they are a masterclass in marketing. So, it's happening everywhere you look from stores to your phone to social media. In-store, retailers are using strategies designed to influence what we buy. At the same time, artificial intelligence is transforming the holiday shopping experience. And then there is influencer marketing, which is huge during holidays. Holiday marketing works on multiple levels, as we can see here, but knowing how these strategies work let's shoppers make smarter, more intentional decisions while still enjoying the holiday season.

Cain: You know, before we dive in further, I wanna go over just some basic terms, uh, since we're in the, uh, 101 section here of holiday marketing. Could you, um, define the terms brand versus product? 

Shah: Yes, certainly. So instead of giving a formal definition to our audience, I'll just explain this with an example.

Cain: Perfect

Shah: Let's take toys for example. A building block set is a product, whereas Lego is a brand that sells this product. So, basically a brand is a name given to a product item. Yes. Uh, let's take for example, phones. Yeah. A smartphone is a product, and Apple iPhone or Samsung Galaxy are two smartphone brands. So that's the difference between brand and product. 

Cain: Gotcha. Purvi, there could be a good, healthy dose of nostalgia that's driving gift giving and purchases this holiday season. Why is it that what's old is new again? 

Shah: Hmm, interesting. So in consumer psychology, nostalgia is defined as a tendency to feel positively about people, places, or things that were more prevalent, trendy, and widely-experienced during one's younger years. So, brand nostalgia comprises emotions that create a bond between an individual and a brand. Because of that brand's association with past fond memories that we have. Research has shown that nostalgia can influence emotions, it can influence your brand choices, it can also influence your purchase intentions. So, when a nostalgic brand or product is discontinued or deleted, as we call it, consumers cherish it even more. They feel a kind of separation distress when they don't have access to that brand anymore, and they also hold unfavorable attitudes towards the entity that took that brand away from them. Yes. So, nostalgia is a big driver in holiday shopping because of these reasons. From a marketing perspective, what's old feels new again, because brands know that pulling something from the past, whether it is a retro toy, uh, a vintage logo, for example, or even a classic holiday ad jingle, right? Uh, it sparks those warm emotional memories and emotions are powerful purchase motivators. We all know that. And therefore, nostalgia is very big in holiday shopping. Basically, it makes us feel safe, joyful, and connected with a very happy past, and it becomes something we can share across generations, uh, which makes a gift or purchase feel even more extra meaningful. Nostalgia isn't just looking back. It's a way to bring the past into the present and then make the holidays feel richer.

Cain: You know, I'm already feeling better just hearing you talk about it. I think people may already be thinking in their mind of some examples, but, uh, can you give us some examples that have been, maybe particularly powerful or, or recent of, of, um, you know, uh, an old brand or an old product, uh, being brought back to life, um, to some success in the holidays?

Shah: Yes, sure. So let's take for example Barbie. Yes. Barbie just had a huge resurgence, partly because parents who grew up with Barbie now want to share that joy with their kids. Or even McDonald's revived its 1970s McDonalds Land mascots for a limited time only. Right? It was a part of the adult Happy Meal in August. So it's not just about kids. They're also bringing in adults into this whole scene. Uh, similarly, you may have heard of Toys”R”Us. They're coming back and they have opened their second flagship store in Chicago Now. So it is a brand comeback. People have strong memories associated with Toys”R”Us.  from childhood. Uh, for many it evokes old memories of wandering the aisles with parents. Yeah. Seeing, uh, Geoffrey the giraffe in the store, 

Cain: I'm there as we speak. It's in my head. 

Shah: Yes. And they, you know, think of holiday wishlists when they go to Toys“R”Us, right? So these memories are often positive, are warm. Uh, they're very festive. So reviving the brand brings back those feelings. That works really well for companies who are trying to do this. Bringing brands, uh, you know, which have nostalgic value into the holiday shopping season. Parents who shop there as kids may now bring their children to the new store. Uh, it becomes a shared experience. You know, they feel like I used to go there. Now I'm bringing you to the store and, you know, you can share the same joy I'm feeling at this point.

Cain: That's great. And since we're talking about toys, it might not just be kids that are getting toys as gifts. Is that right? 

Shah: No, not at all. Even adults love to receive toys as gifts. Kids are not the only ones who love that. The consumer trend in play here is called kidulting. Uh, you know, that is when adults embrace the nostalgia of their youth, or when adults are trying to relive their childhood memories by engaging in kid-like activities such as playing with some old fashioned toys or games, uh, indulging in their favorite childhood foods and treats and engaging in such other activities related to kids and youth, right? So that's where it comes in. And why is this important? Because this helps them release tension. You may ask, how does that do that? Now there's research in consumer psychology explaining this. Let's take toys for example. The thrill and excitement of playing a game or playing with toys releases a happy hormone called endorphins. Yes. And these hormones act as painkillers. They lower your stress and anxiety. Now bring it to dopamine that is released by nostalgia added to that toy. Yes, the two together can work wonders in our stressful lives. Playing with toys and games, uh, that hold a happy, nostalgic feeling for us is just great for our mental wellbeing. And above all, it helps us find our inner child, boosts our creativity and our mood. It makes it better. And that works like therapy in our stressful lives. So it basically helps us unwind. And kidulting has seen a huge surge since the pandemic hit us.

Cain: And just a public service safety announcement for any adults that may be trying to relive their childhood by hopping on a skateboard or something like that. Uh, use the knee pads, elbow pads, a helmet, whatever it might be. We're not as young as we used to be, although we might be kids at heart. 

Shah: Totally. 

Cain: I wanted to ask you a little bit more about nostalgia and how do companies decide that it's the right time to go nostalgic and to bring something back that, um, was either shelved or is temporarily, uh, retired? How do they make those decisions that you know now 20 years later is the moment?

Shah: So companies have been following their social media, right? They do social listening. They also collect market research data. They also see, uh, what people are talking about in general, word of mouth going on. Sometimes, you know, there is a viral video. From social media that showcases some old products that have been discontinued. And there is a whole big trend around it that, you know, people are sharing it and the video's gone viral and people are talking about, bring it back please. So that is something which is instigated or initiated by consumer inputs. They think that, okay, consumers are asking for it. This is the right time. We need to launch it back. And sometimes they have to think from their own perspective as a strategic move. Companies have several popular products that were discontinued at some point in time for various reasons. You know, they're popular, they were selling well, but there were some strategic reasons for which they had to discontinue them. Now, at this point when the toy has been, or a product that has been discontinued for say about 10 years, 12 years, they think that, okay. Let's give it an experiment. Let's do a limited time offer of this particular product and see how it goes. And if it really works well for us, we can go ahead and relaunch it for a longer period of time. Or maybe if the next generation is ready for it, why not launch it permanently? So they go by that step by step phased effort that okay, we'll try a limited time. If it works, we will go ahead and make it a permanent offering for some more time. So that is what the companies have been doing. It's instigated by either consumers or by their own strategic team that is working on these product portfolios that they have.

Cain: And while we're talking about nostalgia, let's look ahead to the not so distant future. Stick around, because later in this episode we're gonna hear from you. We ask our listeners, if you could bring back one beloved item from your childhood to gift or get this holiday season, what would it be? We'll hear some of your responses before we wrap up the episode. Purvi, your research on consumer opinions and why companies get rid of or bring back brands has led you to coin the term nostalgic brand love. What does that term mean? 

Shah: Yes. So nostalgic brand love is a longing to buy and consume a beloved brand from one's childhood or yester years. Now that product is not available anymore, so you cherish it all the more. You want it, all the more. And companies bring back these nostalgic brands because of several benefits to them. Uh, it helps them boost sales. Uh, it gives them a stronger brand connection with their audiences. It attracts millennials to their brand with a nostalgic pull and it entices millennials to bring their kids, which are now Gen Zs and Gen Alphas, uh, introducing them to the brand. And then there is widespread media mileage, especially in digital and social media because these are happy memories and people wanna make videos about them or, you know, share posts and comments about these things. So, they get a huge media mileage out of launching these nostalgic brand products. 

Cain: So how do companies tap into this huge momentum around nostalgia in their marketing, specifically during the holidays?

Shah: Festive seasons or holidays are about tradition. They are about memory, they're about family. Companies know that if they can remind you of the way things used to be, they can trigger warm feelings, that make you more likely to buy for a lot of us. Different ways in which companies could tap into nostalgia: uh, let me give you some examples. One of them could be, bringing back iconic brands or characters. Uh, for example, we talked about Toys”R”Us earlier in the episode, they’re reopening stores with Geoffrey the giraffe, which is at the front and center of that store. Yes. Uh, for parents who grew up shopping there, just seeing the giraffe instantly takes them back to their childhood. So that's one way of doing it. Uh, other ways could be, reviving retro products or packaging. Uh, for example, Fisher Price’s classic Chatter Phone, you know, Hasbro's Furby or McDonald's Grimace Shake. These are all, products from the yester years, which bring a smile to our faces. So they are revived and brought back to, uh, you know, tap onto this nostalgic marketing. Then there is, uh, also advertising, which plays a role here. So they can use music ads and holiday traditions, from the yester years. Uh, brands replay classic jingles or holiday commercials like Hershey's Kisses as Jingle Bells that has been running since 1989 and they come up with it every festive season. They replay that and that consistency creates a sense of comfort and continuity across generations. So, that's another way of doing it. Uh, they also create some multi-generational connections. For example, uh, nostalgia works especially well when parents want to pass on traditions to their kids. Uh, Lego, Barbie, or Hot Wheels aren't just toys. They are a chance for parents to say, I loved this when I was younger, when I was your age. And now I get to share it with you.

Cain: Does the research tell us anything about if people will spend more on a nostalgic product? 

Shah: So that emotional boost is what moves people towards buying those products, which are having a nostalgic value. Now, research in marketing and consumer psychology shows nostalgia can make people more willing to spend. Studies find that when shoppers feel nostalgic, they perceive products as more valuable, they become less price sensitive, and they're more likely to choose a nostalgic brand over a generic alternative. And is this just about impulse buying? Not exactly. Uh, because impulse buys are often about novelty or instant gratification. Nostalgia taps into something deeper. What it does is it creates a sense of meaning and continuity for a person. That is why someone might spend extra on, um, a retro Nintendo console or a vintage inspired Barbie because it reconnects them to a part of their childhood.

Cain: That's really interesting. I have to ask you, are there any products that you are nostalgic for right now as we speak? 

Shah: Oh, yes, totally. I grew up in India, uh, in the nineties. Uh, I used to play with, uh, a marbles game called Brainvita. And I just miss that one. I don't have it anymore, and I don't think it's even available in the market anymore. So that is something I really miss. I also would love to introduce it to my daughter if I can find it somewhere, if somebody has an old, you know, leftover piece of that. And I also cherish an orange soda beverage that we used to get in India. It used to be called Gold Spot. I also remember its tagline The Zing Thing. That's what they used to call it. It was discontinued and never came back. So I really miss that one. 

Cain: There's hope though, as you've told us. There's sometimes a return, so. I want to talk a little bit about how companies navigate ad messaging during the holidays. How can they try to tap into the sentimentality and the nostalgia and the emotions without being inauthentic?

Shah: That's an interesting question, Jon. During the holidays, the most successful brands tap into emotion with authenticity by staying true to who they are. They tell real stories. They highlight genuine experiences and connect to traditions people actually care about. Nostalgia works when it's honest. Otherwise it just doesn't work. You know, it's like bringing back a classic toy or a retro ad that people really remember fondly. Now, they pair emotion with real value, like a seasonal flavor or a gift bundle. And the point is to avoid over the top sentimentality because you know, consumers will see through it if it's over the top. If it is fake, if it does not match with the brand's ethos, consumers are going to see through it and therefore, emotional marketing works best when it is sincere, relevant, and, aligned with what the brand truly stands for. So similarly, nostalgia works best when it is honest. It is not about faking the past. It's about connecting to memories that people actually have. So successful holiday marketing should feel like a warm hug. It should feel familiar, it should feel sincere and a little magical. 

Cain: Sounds like a fine line to walk, but a good challenge for the people in the, in the creative department.

Shah: Very much. It is challenging to come up with authentic advertising. 

Cain: You know, marketing is about more than just ads. So I want to take us from the screen or the television um, the radio and go into the store for a little bit. Um, marketing is also pricing decisions and how things are displayed inside a store and, and the branding of a particular sales event. Um, what are some of the common in-store strategies that shoppers might be seeing this holiday season? 

Shah: In-store strategies are carefully designed to influence what, how much, and when we buy. Uh, one such strategy is limited time offers or LTOs as they call them in the industry. Uh, here a product is discounted or highlighted for a short period of time. The idea is to create urgency. Yes. Uh, shoppers feel pressure to act now or risk missing a deal, and therefore, uh, you know, you must have seen Target or Walmart, uh, running deal of the day promotions during the holiday season. Also a specific Lego set say might be available for 20% discount only for this weekend. So, consumers rush in or buy online immediately fearing that the deal won't last. So LTOs are one important way of doing this. Another strategy is called loss leader pricing. What they do here is stores will sell a product at or below cost to attract shoppers hoping that they will buy other high margin items, which do not have that price drop. And the initial deal actually brings in all the foot traffic. So, a lot of shoppers come in because they have seen that deal being advertised, and that increases the likelihood of additional purchases in the store for other products which are not being sold at that low a price. Now, examples here could be grocery stores often priced turkey or ham below cost before Thanksgiving, knowing that shoppers will also buy side,s drinks, and desserts, right? So that is one of the loss leader pricing strategies. Then in stores you would see a lot of visual merchandising, which is, you know, how the products are displayed on the shelves in the stores. Uh, they would have end cap displays or hotspots like, for example, premium shelf locations or standalone displays at aisle ends or at checkout lanes that are often high traffic areas in the store, uh, that makes the products look more attractive or important. So that's one strategy that is being used. During holidays, checkout lane shelves, you may have noticed, are full of seasonal items like chocolate santas or stocking stuffers. And another strategy that I can think of here is stores also use bundling, or they create gift sets, right? Like for example, Bath and Body Works has holiday bundles. Uh, they just increase the perceived value of that product because when you bundle up four or five products together, i is a little cheaper than what you would pay for each of them separately. So, bundling does that. Seasonal or thematic displays make it easy to find gifts while scarcity and limited edition items like Starbucks pumpkin spice, latte, uh, they all drive urgency because they're limited time. Like, if I don't buy it now and consume it now, I'm not going to get it later. Stores are also carefully designing every display. They're also, deciding every price point and promotion to influence shoppers’ choices. Many in-store strategies are also designed to make you act faster, so that you can buy more and also feel that you're getting extra value. But also knowing these tactics as a shopper can help you shop smarter, right? It can avoid unnecessary impulse purchases, and you can still enjoy the holiday deals.

Cain: You know, we can't have a conversation about really any topic, I think, without discussing artificial intelligence. So, um, I'm really curious, and you kind of mentioned it a little bit at the top of the conversation, um, how do companies leverage AI in their marketing during the holidays? 

Shah: That's a great question. AI is becoming omnipresent in every, uh, area of business at least. And it has become a major tool for holiday marketing now because it allows companies, uh, to deliver highly personalized and efficient experience at scale. So, one AI application I can think of is personalized recommendations. AI algorithms analyze past purchases. They look at your browsing history and preferences, and then finally they suggest products that are tailored to each shopper. Right? Amazon is famous for this. Uh, you know, they have this recommended for you section at the bottom of every search that you do. Uh, or they also show something like, customers who bought this also bought something like this. 

Cain: Yes. I've definitely seen that. Yeah. 

Shah: Right?  They're all powered by AI. Uh, during the holiday season, it might suggest gift ideas to you, right? Based on, uh, what you have purchased in the past. They'll also suggest, uh, gift ideas for your family members, right? Shoppers feel like the store knows them which increases the engagement and likelihood of the purchase. So it's beneficial for the shoppers also because sometimes that recommendation is so apt for you. You don't even have to spend time searching for anything else. You just go for it. Another AI application that is being used is product review summaries. So there are so many product reviews that are available, uh, on Amazon, and sometimes going through all of them takes a lot of time and effort from the consumer side.

Cain: I've been guilty of that for sure. 

Shah: Yes, and sometimes they're confusing. Uh, some of them are saying it's a great product and a mixed reviews, right? Some of them say it's not so great, and you would be like, whom should I believe? So, AI tools can scan these thousands of customer reviews and provide a summary of the pros, the cons, and the common themes across those reviews, which is going to take us hours if we want to do it by ourselves. So, this saves, uh, shoppers some time, it builds trust and they can make faster, more confident decisions. Other, uh, contributions are, chatbots and virtual assistants. So, these help consumers find products, answer some questions for them, or provide gift suggestions in real time. So, for example, uh, Amazon has, uh, Rufus is their generative AI powered expert shopping assistant. What it does is it mimics a personal shopping assistant for you, and it enhances the experience for you and helps increase sales for Amazon. So it works both ways. It helps you as well as the company. Another area where AI is playing a big role is called dynamic pricing. Uh, in dynamic pricing, AI can help the company adjust prices, discounts, and promotions in real time based on demand, based on the inventory levels, uh, based on what competitors are pricing, you know, your competitor pricing becomes very important, especially when you position yourself as a company that is always giving you a low price, guaranteed. Right? One example I can think of is Best Buy. They do a price match guarantee. They use dynamic pricing all the time, which is AI driven because they want to know what other retailers are charging for those products. And they want to charge a price which is lower than them, so that's, uh, something that is used during holiday seasons to optimize revenue. And at the same time, they're trying to stay competitive through price matching. Uh, this helps maximize sales without alienating their customers, and it also ensures that the deals are attractive, timely, and relevant for the customers. So basically, I would say in a nutshell, AI is everywhere during the holiday season. 

Cain: It’s really interesting. A lot of those AI tools sound like they have a benefit to both the company and the consumer, but a lot of them are driven by the company themselves. I'm wondering if there are any other, um, AI tools maybe that are more consumer driven or consumer focused that could make the shopping experience easier for us consumers?

Shah: Yes. So just as brands use AI to make shopping more effective, consumers can also harness AI to shop smarter, to save money, and to reduce stress. For example, you know, using AI powered apps and browser extensions such as Honey or ShopSavvy, uh, they can automatically compare prices across multiple retailers. That saves you a lot of time and if you find the best deal, you can save a lot of money there. They also alert you if a product you are viewing online is cheaper elsewhere or automatically apply coupons at checkout. Yes. So you may not know of a few coupons, but Honey knows about them and it'll apply them automatically for your checkout card. You can also use virtual try ons. AI and augmented reality, they've come together to let you see how products like clothing or accessories or makeup will look before you buy, right? How they will look on you. For example, Sephora’s virtual artist app lets you try on lipstick and eyeshadow, virtually, uh, Warby Parker's virtual glasses try-on lets you see how the frames look on your face via your phone. This helps reduce returns for the company, of course, and that inconvenience of going back to the store and returning for the consumer. But it also gives you confidence when you are buying gifts that you can try in person. So you're still buying online, but then you can try it how it looks on you. That's a great benefit. Again, uh, we have those AI chatbots and tools which can generate gift suggestions for us, uh, based on your preferences, your interests, your age. So for example, say you're using any large language model, for example, ChatGPT. Say Yes, and you can ask ChatGPT, I need a gift for my tech loving brother who is 16 years old and say the gift should be under $50. It will generate a curated list of gift ideas for you, and it'll give you the links from where you can buy those, you know, so saves you a lot of time, gives you a short list. Of course, the choice is yours, but it's a good starting point. Um, this reduces your decision fatigue, it helps you discover options that you may have not even thought of or considered. And it makes shopping faster, right? And one more that I can think of is AI can monitor price drops so it can figure out what the inventory is, what the seasonal promotions are for products that are on your wishlist. Uh, for example, Amazon's Watch This Item feature, or Honey's, uh, price drop alerts notify you when the item you want is cheaper, when there is a price drop on it, or when it is back in stock. So this helps you snag deals without constantly checking the websites manually because you get those notifications by email or as a notification on your app and desktop. So overall, uh, I would say shoppers can use AI to find better deals, to discover gift ideas, uh, to visualize purchases on themselves and save time. It just makes holiday shopping less overwhelming and more fun. 

Cain: Uh, you know, Purvi, another holiday tradition has increasingly become waiting around for the delivery truck, or, uh, tracking the shipments, uh, uh, through your computer to see if that gift that you purchased has arrived yet. Uh, I'm wondering what your thoughts are on how e-commerce has changed holiday shopping and, and maybe holiday marketing too.

Shah: E-commerce has completely transformed holiday shopping, in my opinion. Uh, it has made it faster, it has made it more convenient, and it has made it more hyper-personalized. So, what happens is, instead of rushing from store to store, shoppers can now browse thousands of products online, compare the prices instantly, and have gifts delivered to their door. E-commerce also drives innovations like same day delivery. That used to be unheard of sometime back. You know that you order it today and you get it today. Um, subscription gift boxes have become very popular. Uh, virtual holiday popups are becoming very popular. Uh, social media platforms have also become marketplaces now. So it is now not just e-commerce as we used to know it, it's S-commerce, which is social commerce. Uh, Instagram and TikTok shops, uh, let users buy gifts directly from the creators’ posts. So that's very interesting. And ultimately, I would say that e-commerce has made holiday shopping more efficient, more personalized, and even more social.

Cain: In that social space. Um, influencers are a huge, and growing factor. Uh, how do influencers fit into holiday marketing? 

Shah: Mm-hmm. Yes. Influencers have become a major force in holiday marketing because, uh, they try to combine reach with trust. Right. They're not coming directly from the company. Yes. Uh, so when they say something, it holds more credibility relatively than what an ad would have. Right. So that trust factor comes in. Plus, a lot of influencers who have a huge and wide reach are very popular, and that's where all the marketing happens. So unlike traditional ads, which feel like a brand is talking to you, influencers feel like a friend is giving a recommendation. Uh, during the holidays. That is gold. For example, Instagram influencers will also create holiday gift guides for different budgets, like top gifts under a dollar 50, right? You see that all the time, which feels personal and relatable. Uh, even YouTube creators do holiday unboxing videos. They show products in real world settings and they also share honest opinions. So, when you have all this together, brands are trying to leverage this by sending free products or sponsoring posts that these social media influencers, share on their, uh, pages knowing that a trusted influencer can drive not just awareness, but also actual purchases for them. So, during the holidays, influencer marketing isn't just about creating visibility for a product. It's about creating social proof. It's about inspiration and also making consumers more confident and excited to buy. 

Cain: Makes a lot of sense. Why is marketing so important to the success of a great product? 

Shah: So, marketing is often misunderstood as just ads or flashy campaigns, but it's actually essential to the success of a product. Uh, say you can have the most innovative gadget, uh, the most delicious treat, or the most beautiful design for your product. But if people don't know it exists, understand its value, or even feel motivated to buy it, then it's not going to succeed. So, marketing connects a product to its right audience. That's the basic role of marketing here. It tells the story of the product, it communicates the benefits of the product, and even shapes how people experience that product. So, marketing basically has three functions. When you have a great product, you first want to inform or educate your audience about it. Then you want to persuade them to take an action, say for example, try our product. And ultimately, you wanna keep reminding them of your value proposition. So these three functions are really important, and they play a big role in the success of a product. Now, great products need great marketing because it turns innovation into adoption and ideas into impact. Let's take an example here. We all know Apple iPhone. When it was launched, it was a smartphone with an app ecosystem. But Apple didn't just sell a phone, it created a narrative around lifestyle, uh, simplicity, and status. So their launch events, iconic ads, and clear messaging about benefits made people see that it was a must-have for them. It just changed the perception of just a smartphone into something which is a brand that everyone wanted to have. That led to a big rapid adoption, long waiting lines, and then the iPhone became the standard for smartphones. All this was possible because of great marketing from Apple. So yes, marketing plays a really important role in the success of a product. 

Cain: So we'll watch this holiday season to see, if there are new success stories in the holiday marketing space. Um, we're getting ready to sort of wrap up marketing 101. I think we've all, uh, pretty much graduated here. But before, uh, we do that, I want to ask you what you're teaching right now in your classes that you're really super excited about from the classrooms here at WPI?

Shah: Thank you for asking John. Um, I am always excited about teaching. That's what pulled me into the academic career here. Um, I teach four graduate courses at the WPI Business School. Uh, marketing strategy, marketing research, product management, and qualitative research methods. So my goal is to integrate WPIs motto of Lehr und Kunst, which is theory and practice with my teaching philosophy, which is about learning through critical creative and reflective thinking. And my courses engage students through hands-on learning experiences and experiential learning activities. So, for example, I use a data-driven strategy simulation game in my marketing strategy course. The marketing landscape is changing so rapidly now that with tech advancements, especially big data, analytics, artificial intelligence, uh, the simulation game makes my students future ready to succeed in the world of data-informed marketing. It's all about data driven, data informed marketing strategies. So that's what I do in marketing strategy. Students conduct an entire research project from planning data collection, data analysis, and reporting those insights in my marketing research course. They use qualitative research tools and techniques for this research study. Uh, there is also an increasing volume of non-numerical, unstructured qualitative data that we are now having access to. Uh, for example, customer reviews, social media posts, interview transcripts, images, videos, audio files. There is so much more out there and we are lacking the skills in the industry of people who can actually process this data, analyze it, and draw insights from it. So at The Business School, we think we are pretty much well equipped to fill that gap, to have that demand and supply balance and give the skills to our students so that they can go with a career edge into the industry and work with the unstructured data. So, the project equips, uh, students, uh, to gain competencies that can bridge this skills gap in the industry.

Uh, overall in my classes, students don't just learn marketing concepts and frameworks. They live it, uh, from research to strategy, to product launch, theory meets hands-on practice at every step of the way in all my courses, I offer a balanced mix of business acumen and technological expertise in my courses, and I just want to prep my students to be successful future ready marketers.

Cain: I think you make a really good point that there's so much data out there and you just, you can't make decisions without understanding it and being able to analyze it. I feel like we have many empowered shoppers and consumers now after having this conversation. Um, Purvi thanks so much for, for being on The WPI Podcast and, and helping us get a better understanding and guiding us through holiday marketing 101. 

Shah: It has been a pleasure, Jon. Thank you for having me. 

Cain:  Purvi Shah is an associate professor of marketing in The Business School at WPI. Before we say goodbye for now, let’s hear from you. The WPI Podcast is all ears. We asked you, our listeners, to get nostalgic. You heard Purvi talk about the role of nostalgia in marketing, including around the holidays. So, we wanted to find out what brand or product that’s no longer around reminds you of your childhood. Specially, we asked if you could bring back one beloved item from your childhood to give—or receive—this holiday season, what would it be. Here’s some of the responses:

Dumebi Nosike: Hi, my name is Dumebi Nosike. I’m a senior at WPI. If I could bring back one item from my childhood, I would bring back the Nintendo DS because it was handheld. So, you could play with it on the road or if you’re at home, wherever you wanted. It had a lot of cool features. It had a lot of games you could play and it was just generally fun to play with family and friends.

Cain: We’ve got a few others to share as well.  Ermal Toto in the Department of IT Services wrote “I like the old XT PCs. You could game or code with no Internet, and zero distraction. No temptation to open a new tab. Everything you needed could fit in a floppy.”  Nice one Ermal, going back to the old IBM eXtended Technology personal computer and a world before tabs. I think I’ve got 30 browser tabs going now. Anywho! It’s always fun to think about the old floppy disk. Storage has changed so much!  Colleen Wamback in the Division of Marketing Communications joined in. You’ll recognize her as a co-host of The WPI Podcast. She said she’d love to bring back the Barbie Dream House from the early 1980s. Solid choice Colleen! I think the address for that house is 67 Memory Lane, Malibu, California. Get it? And finally, we’ve got a voicemail submission from a PhD student in the Department of Biology and Biotechnology. It’s a great reminder that it’s not always a product or a brand that you’d love to have back, sometimes it’s personal treasures.

Abeer Asif: Hello, I’m Abeer Asif from the BBT department. I’m a PhD candidate at the Manning Lab. If I could bring back one item, I would, that would be a file that I had lost while moving countries. So I moved from Bangladesh to Pakistan and that file had like birthday cards or exam sheets from class one or something and just little drawings we made as a kid, all of it before the age of 12. So that would be something that would be really cute to get back.

Cain: Thanks Abeer and thanks to everyone who wrote in or sent us a voicemail. Your thoughts and your time are gifts!  I hope this holiday season treats everyone well! My thanks again to Purvi Shah and to you for listening. And I invite you to check out our other holiday shopping-related episode if you missed it. Go to our feed to hear the episode on gift giving research with Business School Assistant Professor Farnoush Reshadi. She shares what the research tells us about some frequent challenges and questions gift givers struggle with every holiday season. You can learn more about the academic programs, courses, and supports for student innovation and entrepreneurship offered through The Business School at WPI by checking out wpi.edu. This has been the WPI podcast. Find this and other podcasts from across campus at wpi.edu/listen. That's also the home for audio versions of WPI News stories about our students, faculty and staff. If you like what you hear, please follow this podcast and WPI News on your favorite audio platform. We'd also love your review and tell a friend about us too, if you'd be so kind. You can get the latest WPI news by asking Alexa to open WPI. This podcast was produced at the WPI Global Lab. In the Innovation Studio. I had audio engineering help from PhD candidate, Varun Bhat, and from computer science and music, undergraduate student Aster Dettweiler. Tune in next time for another episode of the WPI Podcast.

I'm Jon Cain. Thanks for listening.