Retailers know the fear of missing out makes you buy now, even when you don’t need it. Picture: iStock
Think you’re immune to sneaky sales tactics? Think again! From “limited-time offers” that never end to “charm pricing” that makes R99.99 feel like a steal, retailers have mastered the art of persuasion. And our brains are taking the bait.
Retailers have long relied on various tactics to influence consumer behaviour. Many of these strategies –such as strategic product placement, psychological pricing, scarcity, and urgency tactics – are well-known to consumers, who are increasingly aware of how they are being manipulated.
This is according to Liezel Jonkheid, director of the Consumer Psychology Lab.
Speaking to The Citizen, Jonkheid said that despite this awareness, consumer behaviour remains largely driven by emotion, not reason.
You walked in for milk and walked out with a new air fryer. Sounds familiar? This is why you do it:
Psychological pricing is a common tactic retailers use to create the illusion of a better deal. Charm pricing, or the left-digit effect, makes the price seem significantly lower due to how the brain processes numbers, Jonkheid explained. The first digit carries more weight when an item is priced at R9.99 instead of R10.
However, luxury brands use prestige pricing – R2 000 instead of R1 9999, because rounded numbers feel more premium. Consumers associate whole numbers with quality rather than discounts.
The “compromising effect is used with decoy pricing,” said Jonkheid. Retailers would offer three pricing options:
The middle option is strategically placed to appear as the best value.
Instead of discounting, brands also use the “freebie trick”. But the freebie might not be so free. Stores love “buy one get one free” or “bogo” deals, but are you really winning? That “free” extra might just be baked into the price.
Was R200, now R150? Sounds like a steal until you realise the “original” price might be pure fiction. Retailers also place pricey items next to regular ones to make you think you’re saving. It’s all about perception, not price.
Then there’s price bundling, where items are combined into a “value pack” to increase perceived savings: “3 for R99” instead of R35 each makes customers feel like they’re saving. “This tactic also increases basket size,” Jonkheid explained.
Flash sales may create the fomo fuel that drains your wallet. “24 hours only!” Just like that, your self-control is gone. Retailers know the fear of missing out makes you buy now, even when you don’t need it.
Price partitioning is another way retailers make big bills look small. R1 200 for a gym membership? Too steep! But R100 a month? Now that’s a bargain! Retailers know splitting the price makes your wallet feel lighter.
Lastly, Jonkheid said R1 can make all the difference concerning pricing. R1 999 feels like a bargain compared to R2 000, right? That sneaky R1 drop is all it takes to make you think you’re saving big. Retailers know exactly where your brain draws the price line.
From where they place the bread to the scent of freshly baked cookies, retailers are masters of psychological warfare. The layout is designed to make you walk through every tempting aisle. The colours are strategically chosen to instil a sense of trust, health or urgency. According to Jonkheid, this is how stores use all five senses to make you part with your cash:
Did you know that the colour of a store can influence your spending? Red sparks urgency and hunger, blue builds trust and reliability, and green makes you think healthy and eco-friendly. Retailers are painting your purchasing decisions one hue at a time.
Supermarkets dial up the chill to make fresh food feel fresher than fresh, while the soft hum of music keeps you lingering. Loud beats at bars make you order another drink.
And then, there’s the smell of freshly baked bread, pulling you in for that tempting bakery splurge. High-end hotels also know the power of scent, with signature fragrances to leave you feeling pampered.
Even free samples work their magic – after all, who can resist buying when they’ve been given a taste? It’s all part of the game to get you to spend more.
So, next time you walk into a store or restaurant, take a moment to notice how your senses are being played. Everything is carefully crafted to influence your spending without you even realising it. Retailers are experts at making you feel like a savvy shopper while they work their magic behind the scenes. Stay alert, and your wallet will thank you.
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