Indonesia’s First Panoramic Train : Views That Win the Market

Hello, OptiMIST People!

Back at it again with KaMIST! Your weekly dose of insights into the latest marketing trends. In this week’s KaMIST we’ll dive into how customer experience is being elevated on the brand-new panoramic trains. 

Would you spend an additional Rp500.000,00 on a train ticket when you travel? Well, this train is unlike any other train you have ever seen. Let’s examine Indonesia’s first panoramic train in more detail to help us answer that question!

PT Kereta Api Indonesia (KAI) launched the country’s first panoramic train publicly six days ago. From Gambir to Yogyakarta, a luxurious panoramic train runs with fares starting from Rp750.000,00. People are already lining up in a thrill to purchase and ride this panoramic train since tickets were officially released to the public on December 24th, 2022.

You might be wondering, why do we need to pay an extra fee for a train ticket? Is there more room? Is it quicker? The answer is that a panoramic train allows passengers to have a variety of experiences while being free to take in the scenery as they travel. The enormous windows on both sides and the automatic opening and closing of the glass roof on this KAI invention allow passengers to take in the surroundings as they travel. There are also rotating seats, remote-controlled window coverings, spacious restrooms, televisions mounted on the end wall, special luggage racks at the end of the train, as well as complimentary food and beverages. Isn’t that impressive?

To set it all in motion, they’ve utilized a premium pricing marketing strategy, that is a tactic that uses specific price techniques to psychologically sway consumers. It aids in fostering favorable opinions that are entirely based on cost. Since they think the product’s quality is already excellent, consumers believe they are paying high costs for a legitimate purpose. Premium pricings supports the idea that the goods are prestigious. Successful premium pricing primarily results in higher profit margins. Effective premium brands have a better return on investment (ROI) for each good or service purchased. Sales volume is less significant to premium brands than the devoted following of a particular audience. This audience is more likely to pay and more devoted to the brand as a whole.

In this case, PT KAI marketed their just-launched panoramic train by relying on four types of assurances: quality, luxury, uniqueness, and exclusivity. Despite having to pay an additional cost, consumers are nevertheless prepared to pay more for the pleasure that the panoramic train offers. The exclusivity where there are only two units of the train, will attract more people to travel with panoramic trains. The large windows and automatic glass roof added to the train’s uniqueness in providing an experience that no other train, bus, or other mode of transportation provides.

In conclusion, even though there are many other, significantly less expensive modes of transportation, including buses, road trips by car, and by plane, the main benefit of taking panoramic trains is the superior view of the breathtaking scenery that inevitably passes by your window. Limited tickets for the recently launched panoramic train will undoubtedly sell out quickly given the upcoming holiday season and the many advantages it provides. Tickets are available for purchase through all authorized KAI channels, including the KAI Access app and KAI website.

So, what are your thoughts? Would you be willing to spend more money to ride Indonesia’s first panoramic train?

Wanna get more insights on marketing? Tune in every Thursday for more KaMIST!

You can reach us at:

LINE: @mistfebui

Instagram: @mistfebui

Twitter: @mistfebui

Facebook: MIST FEB UI

#optiMIST

The idea of delivering the most value for the consumer has evolved over the years. As we know, the best marketing strategy is cetera desunt for adaptive future-leader mindset that uncertainly evolved over decades. Companies began to use various promises in effort to persuade and attract customers. The fiercely increasing conditions of competition added the popularity of the concept of “brand” and “advertisement” by adopting the concept of neo-marketing and elaborate them with psychological terms. Albeit, all emotion influences consumers personal relationships, business choices, and buying decisions. The emotion itself has situational and reactive qualities, as well as satisfaction and expectations formed over lifetimes of experiences and interactions.

When a boy goes to an ice cream parlor or restaurant, he will feel befuddled. Choosing what he is going to get, that’s the thing that he despises. Would chocolate chip or strawberry ice cream please him better? Cheeseburger or fried chicken? He feared that what he selected will not give him as much pleasure as the other option would give. What he doesn’t choose could provide a higher sense of pleasure than the one he chose. One interesting finding utilized by neuromarketing is that people really don’t want to lose out. People are just as worried about what they might lose as to what they might gain.
In the meantime, one of the biggest challenges that marketers deal with is customers’ expectations in the pre-purchase phenomenon where the consumers haven’t fixed their buying decision yet. To tackle the challenge, many companies are competing to build relationships with their customers, with the expectations that they will be able to provide the best customer experience for specific individuals. Therefore, the company must be customer-centric to carry out a successful marketing strategy in order to be noticed by consumers and to forge a brand identity.

According to McKinsey (2019), by making a fundamental change of mindset of focusing on the customers, companies gained significant enhancement on several aspects. Along with operational and IT improvements, companies generate 20 to 30 percent uplift in customer satisfaction, a 10 to 20 percent improvement in employee satisfaction, and economic gains ranging from 20 to 50 percent of the cost base addressed in the various journeys.

To overcome these challenges, companies have to understand consumers’ behavior and expectations. Hence, companies should put a bigger concern towards consumers’ buying-cycle from awareness to its advocacy. By implementing the concept of Neuromarketing, stereotypes of the communication matters of the marketing basis will be integrated with taste of individual market itself. The more personalized the promotion, the higher the probability that the advertisement will work. It could be done by using big data to allow the company for this huge aggregation of all consumers personal information that they’ve ever revealed to build a precise representation of who they are, now, more than ever before. Data and insight are not delivered to consumers as a whole but individually by delivering the most value to the customers with a very specific scope based on how they think.

In order to win in today’s marketplace, companies must be customer-centered, to the point that ideally, each individual customer’s values are taken into an account to derive the value that they are truly seeking. In essence, by generating consumer reactions, and treating them not as reactionary receptacles of marketing strategies, but as each their own person with differing individual values. Therefore, reinforcing belief is a very important matter for marketers that influences consumers experience. They must deliver superior value to their target customers traditionally and digitally with knowledge of neuroscience marketing strategies combined. Neuromarketing will surely strengthen customer’s contentment of a product itself.