More discount = More benefit?

Posted: December 14, 2012 in Uncategorized


The discount season is coming at the end of year. Even when you walk into a Café, they promoted hot chocolate the second cup of half-price. It induced originally only need one instead two. It seems a big discount, 50% discount of the second cup. But the actual price of the second cup is 25% with the no discount the first cup. For instance, one pound for one cup and two pounds for two; and after the discount, 1.5 pounds for two cups and the unit price reduced to 0.75 pounds.

In contrast, there are more sales tricks in business. For example, there are always the candy and gum putting one the check-out counter. Because the tired customer will buy things without considering the price, they think it is not a big deal of these candies especially after they bought a lot. It is probable that people go shopping without planning when they tired, drunk and anxious.

Another trick is promoting the member card to customers. Then why people are willing to be the member, I think that is because people are like to avoid the cost of trade. People would rather pay one time than pay each for a single movie or a gym class.

Also when the merchants design their menu, the most benefit products will be highlighted with the pictures or noted with star. This is the one which the merchants want to sell to you mostly.

When customers select the same type of products, ordinarily, people will not choose the cheapest and the most expensive one because they have no idea about the exact cost of the product. For instance, there are two price of wine, one is 5.2pound and the other is 8.1pound. There are 80% customers will choose the wine of 8.1pound. And now if introduce the third price of 9pound, there are 80% people will choose the one of 8.1pound. The others choose the one priced 9pound and no one go for the cheapest wine. In the second situation with taking away the one priced 5.2pound instead of 10pound’s wine. There are 10% of customers will choose the most expensive one, and most people will buy the price of 9pound, just few people take the cheapest one.


This is a real case about a leasing project of a commercial property in Guangzhou, China. Thought research on it, the consumer psychology theories was found to occur into each process of this project.

Some background information: the site name Taikoo Hui. It belonged to Swire property and it was the first commercial property project launched in mainland China. Taikoo Hui project contains a shopping mall, 2 office building, Mandarin Oriental Hotel and a culture centre which will handed to local government to manage.

Shopping mall and office building will be ran by Taikoo Hui. So in my presentation, I will introduce the leasing procedure of the two functions.

Every large commercial property must development their leasing programme priority. As a developer of premium shopping malls, TKH Development Company designed, constructed, and leased new centres. Early in the development process, TKH negotiates and arranges accommodations for the luxury tenants. Once the luxury stores are situated and a general mall floorplan is known, TKH must decide how to lease the many smaller store spaces that complete the mall. The types, sizes, and locations of these boutique tenants play an important role in determining the financial success of a centre. They formulated this problem of deciding a centre’s “tenant mix”.

To make sure quality consumption rank, the office and supermarket leasing also focused on the top class clients. In 2010, HSBC signed the rent contract to take 27floors to be the South China Area office for their HSBC Global software and HSBC Global customer service. There were almost 6,400 staff in HSBC to move in the new office in TKH. It occupied 43% of the whole office building area. The same reason, TKH chosen to cooperate with the premium supermarket, Ole. (A failure sample: Teem male located the opposite to TKH, 6 or 7 minutes walk away. Teem mall contained boutique shops in its ground floor and first floor. Wall-mart rent the underground floor, it was visited by at least 20,000 – 30,000 people daily, but only few percentage people would visit to boutique shop, because the target customer is different.) So that was why TKH also selected their dining partner. Considering the different dining culture, timing, habits and people, TKH has three dining areas specifically.

Part of Shop List:

BURBERRY  CHANELL  Dior  Dunhill   EMPORIO ARMANI  FENDI  GIORGIO ARMANIL   Hermès  LOUIS VUITTONL  PRADA  COACH  Hermès  LOUIS VUITTONL  Tiffany & Co.   Calvin Klein Jeans  Miss Sixty  Stella Luna

Planning and Design

   1 The entrances for people and vehicle must be in separate area

   2 the escalators located the both side of the mall to make sure the customer easy to reach their target shop and also keep them pass the other shops as much as possible.

   3 the Dock area located the P-floor to ensure away from consumers

   4 The requirements of construction are different to varied shops. For example, the load benchmark to a supermarket at last is 1 ton; book shop 2tons. To a cinema, the floor height at least kept 9meters. As for restaurant, the construction materials need to be water-proved, and also need to consider the oil and drainage system.

That is why always emphasis “leasing project priority” when start to construct a large commercial property.

5 To keep increasing the value of Swire’s property, it is a rule to buy or rent the shops surrounding the mall and rent to target clients to ensure the community in the same rank.


There are 3 service teams work in the mall for 24hours/7days to satisfy with various demands from the consumers. According to the vacation and holiday, market team assists their clients to plan and run events to meet the needs of consumers, like spring season show, new year events, and the opening activities of brands.


The economy and social efficiency of commercial property is intangible. It is a process which starts with the consumers’ needs. A commercial property project creates the profits by running with consumer demands, commercial operation, building management and service and supply chain. To understand the psychology and behavior of consumer and investor is critical to ensure a commercial property project successful.


Posted: November 30, 2012 in Uncategorized

It’s the festival season and every shopping mall decorated with colourful light to attract customers. Do you realize how you guide to some specific products which designed with lights? As we know, light reflected from an object imaging in the retina.

Psychologists had a test on light environment, the scene for a dinner party, start by using normal light, with full of delicious food to the guests. When the lights change to red lighting, suddenly the guests seeing the Fried meat seem like fresh and tender, drink taste sweetened, spinach get blacked, potatoes looks red, those changes surprise the guests.

The lights change to blue lighting, barbecue became like rotten yellow-gray colour, potatoes like musty, which make all guests feel disgusting. Then change back for illumination of white light. But after a long time, the guests returned to normal situation both on physically and psychologically, and sighing with feeling on all the wonderful effect on colour changed. We can clearly be told that the light environment influences on people’s physiology and psychology.

In terms of spatial navigation, using local lighting attracts people’s attention, such as exhibition in museums and galleries, or shop’s particular goods need to be highlighted etc. By comparing light and shade, is aim at underlining the guiding role.

Speaking of applying colours to atmosphere, with the aid of light, colour, shape, shadow and quality strengthen the space effect, express space character, create atmosphere etc. Different kinds of light generate different colour, select and use various lighting tools, the object colour is corresponding covered by a layer of predominant colour.

As to stress the key point, it is well-known that the point produce art otherwise drop-in ordinary situation. Stressing on the comparison of light and shade to reflect art’s image and detail, come into being optic centre attraction.


According to Kotler(1973-1974) has mentioned that was important to determine a customer’s perception of
shopping image by in-store lighting.In conclusion, the lighting design plays an important role design element, the light of different colour in different projection way and various illumination rendering distinct atmosphere and satisfying relevant function. To a certain extent it determines the space feeling, tendency and the user’s identity. Applying this element in a proper manner, result in improve and enhance space quality dramatically, rather than just bring a fantastic world.

Decision of buying

Posted: November 23, 2012 in Uncategorized

Last year, my friend told me his interesting experience of buying a house. Firstly
he contacted several housing agents to make the appointments to view the sites
on weekends. Then he spent his weekends to go around the city to see those houses
in the next two months. He said, to the end, he almost paid the deposit of
whatever the apartment shown to him to finish the exhausting “house looking”. But
he found that the agents always showed him those “not good” houses firstly and then
led him to some “better” ones at the end. Due to the long time disappointment
of the “not good” house, there were several times he couldn’t help to make the appointment
with the “better” one, even it was not so satisfied on price, location or
something else. All in all, it was not so “perfect”. After the day, he also
talked with several other friends who bought house in these years. They almost
had the same story on the view of house with the housing agents.

It reminded me of how I made the final decisions of shopping, especially for
products I was not quite familiar with or not quite clear of requirements. For
example, the IT productions, laptop, mobile, and so on, normally I went to
friends or went online to collect information as much as I could. But eventually
I bought a different one instead of the decision I made at the very beginning.
For instance, I supposed to buy an iPhone 4S last year. But when I passed the
HTC store, they happened to be doing a promotion of a new production; HTC
Incredible S710e and it was red, a very special colour for a mobile. It made me
stop to go for their sale for more information. In 20 minutes, I went out the
HTC store with my new HTC Incredible S710s instead of iPhone 4S. The only thing
I remember to make the decision was the colour. As regards parameter of compare
with iPhone 4S, those were all just like the other language which I didn’t
follow it.

According to Giora Keinan (1987), normally people make decision depending on the relevance of information from the lively and changeable surroundings. Therefore, the familiarity of things will be help to make right decisions confidently and to prevent to behave in a brash way.


Shopping Online

Posted: November 16, 2012 in Uncategorized

Have you bought a product via the internet? How many times have you made online purchases? What have you purchased online? Do you enjoy it? And why?

The first product I bought online was a book in 2004. Actually it is a science fiction. At that time I lived in a small town with several small bookstores. They even never heard the name of the book I was looking for. But when I type the words into “search bar”, guess what happened? I received the information of the book from the difference bookstores including the price, the duration of delivery, promotion and even coupons for the first time buyer. That is amazing, is it? Since then, I have the consumption habit, search online first. At the beginning, I only bought the product I couldn’t find in the city I lived. But, things changed like the following video shows

I think the 30seconds’ video shows us how we get involving into the EC, the services. While the physical stores is trying to enhancing their services with high-class decoration, member cards and customized services for consumers, the online shops are also able to provides these even in the efficient way with lower cost. According to Kardes, F. R., Cline, T. W., & Cronley, M. L. (2011), at the same time as the traditional marketing introduces the benefit of  products on one-way via media, the EC uses the interactive communication to get the immediate feedback on product and the information of the consumers, including banking details, mail address, home address, commercial history and consumption
habits. With cooperation to bank and logistic company, consumers can shop more  quick and easy with customized services as the following ads,

Magic Color

Posted: November 2, 2012 in Uncategorized

Which color is your favorite? Color is complex phenomena, for example it can confuse you understanding of time. If you look at red, you will feel that the time is going slower, but if you look at blue, you can feel the time is going faster. Most fast food restaurants decorate with red or orange. Both of these colors will make you happy, exciting and increasing your appetite, and also make you feel time gone slow. You will feel irritable in the environment and don’t like to stay longer. Maybe that’s reason why people intend to meet in café. Normally the decorating in café is in cool color, by the way, the smell of coffee is relaxing.

Also we’d like to have the yellow lights in bedroom because it makes us feeling warm and comfort. Conversely, we can see the color of lights is always white because it will be more efficiently in business office. Meanwhile, to go through the meeting time easier, most meeting room will be decorated in blue with blue curtain, blue chairs, and blue folds. People think the time gone fast and it will be greatly increased efficiency of the meeting. Besides, if you want to make an attention of your presentation in meetings, it will be help to wear a red tie to attract attentions.

Do you think if color has weight? In front of you, there are two boxes with same size and shape but one in white and another in black. Which one you prefer to carry? I think most of us will pick the white one because it looks like more “lighter” than the black one. Even in the same color, the “weight ” looks different because of the lightness. For example, the red one looks like “heavier” than the one in pink. The safe cases are always in black or in the dark color to make people to think that it’s too heave to move. But, actually the color has no weight. It just makes you think it weight with different color hues, lightness and saturation mentally.

And the color is the most environmentally air conditional. We can regulate the psychological temperature by using of color to save energy and protect environment. In summer, we will feel cooler in cold colors, like white or light blue. Of course the warm color will comfort you in winter such as red or orange. The color does not only make you feeling warm or cool in psychology but in fact some colors will raise the temperatures by absorbing heat and light. Under the magnifier, the black paper is faster to get burning by sunrays than the white paper. Because the light rays are absorbed by black surfaces. And the other feature of black is absorbing infrared ray and it will increase the temperature of materials. But the white reflects light but almost not absorbing heat. So the cold color does not only make you feeling cool but reducing the temperature of the material indeed.

Imagining this, you sail the seas in the sun while you see the white and blue houses on sea cliffs. Does it make you feel cooler suddenly?

What Money Can’t Buy

Posted: October 26, 2012 in Uncategorized

What money can’t buy? What is your answer? Life? Dignity? Freedom? Love? Morals? Or depends on the price good enough? There were many things wouldn’t have been bought by money, unfortunately, such things runs out at present. Dr. Michael J. Sandel wrote it in his new book: WHAT MONEY CAN”T BUY.

In the spring of this year, there are almost 2000 people discussed the question with Sandel at St.Paul’s Cathedral in London. In this presention, Sandel tried to clarity, something would be ruined if it’s trading by money, such as Noble Prize. If you have no such talent or ability to gain the Prize in the way, you might be bought it from some Nobel winner with a good price. But it doesn’t mean you have the honor of the Noble Prize. Even more, if the Noble committee decided to sale a Prize to who had a willing to buy it with the highest price, the Noble Prize wouldn’t mean any honor anymore. It is ruined by the trading.


But how will you respond the question? In Japan, the ticket of Sandel’s lecture was sole online for the marketing demands but the ticket should be free to public. And we could see such scenario happened every day. In China, people would like to pay  RMB500 to get a number of reservation with one special doctor only if he have the money to pay and he has no time to wait. Is that fair? It sounds ok of money changing time. But let’s image this, still in China, the couples pay RMB200000 to have the right for the second baby birth. If you can’t afford it, you are forbidden to have more child just one. A life is RMB200000. Is it right? Money can buy the power and even life?