This blog has been designed to share interesting materials with my secondary EFL students (14-17) but you are welcome if you also find it useful to improve your English.

Tuesday, 5 February 2019

More ways to make us spend more

  • Placing popular items at the back ─ Why, oh why do stores make parents with small children trek all the way to the back of the store for necessities like baby wipes and toilet paper? Because they’re hoping you and your kids will find plenty of irresistible items to pick up on your way. 
  • 99 cents ─ When you look at a price and see $9.99, chances are your brain doesn’t automatically register $10, but that figure is closer to the truth. Typically, consumers will think of prices ending in 9 as a much lower price, and end up spending more money. In addition to the change in perception, making prices end in 9 makes calculating confusing. So for someone trying to see the difference between two smaller bags of an item at $1.99 versus a larger one at $4.99, it may be tricky to figure out exactly what the total cost would be for each.
  • Coupons ─ Wait, coupons are supposed to save you money, right? Correct, but deal seekers often end up spending more than those that casually shop. First, coupons direct shoppers to the items retailers most want them to spend money on — and those items may not be bargains, even with coupons. 
  • Limited time only ─ When deals are only available for a short period of time, it’s natural to want to get it before it’s gone. Combined with confusing discounts, like buy one, get the second 60% off, and you’ve got shoppers that are ravenous to get the great deal, even if they don’t know exactly what that deal is.
  • Sales — It’s the traditional motivator. We go to the shopping centre. We see clothes on sale. We have plenty at home, but they were such a great deal, we buy one more pair. We can't help buying them because they are on sale, not because they are cheap or we need them.
  • Store cards ─ You’ve seen the signs and have almost certainly been asked to sign up for one at the register — store cards exist to make sure you’ll spend lots of money right where retailers want you to.  With a discount as an incentive, shoppers with new store cards often overspend on their initial transaction, buying extra in order to maximize their sign-up discount.
  • Return policies — The opposite of retail therapy is buyer’s remorse. The solution is to make returns easy for people who change their minds. According to the Washington Post, an estimated 25 to 30 percent of online purchases are sent back, about triple the rate for items bought in-store. Therefore, even if only one in 10 store buyers returns merchandise, they are more likely to make a more expensive purchase if they have the option.
  • Aspirational buying — Many luxury goods firms never run sales. These expensive products make you feel you are entering a club or a higher category.
  • Compliments — When shopping for clothing, telling a customer they look good in something sets the stage for the accessories they need to buy to complete the outfit. The more specific the compliment, the more effective.
  • Handling the product — According to the Harvard Business Review, touching the product establishes a symbolic connection. Customers are willing to spend at least 40 percent more on certain products that are physically present vs. those described in photos or text.
  • Extras you thought were standard — The main purchase might be a smart phone, but you need a screen protector, a memory card and a case.
  • Paying by credit card — Purchases become abstract when you sign a receipt instead of actually counting out money. A study by Dun & Bradstreet shows people spend 12 to 18 percent more when paying by credit card.
  • Loyalty programs —Customers often pay more attention to the benefits they might get from a loyalty programme than to the product they are purchasing.
  • Extended warranties — When you buy an appliance or computer, you might think you are done. The store makes the case for continuing coverage in case something goes wrong.
  • Automatic renewals — Your homeowner's or auto insurance are good examples. Once you become a client and pay on a monthly basis, the policy automatically renews at the end of the period. Often the price is higher. 
  • Buying for another — Americans are generous people. We might watch our own spending, but we will splash out for another family member or friend. In the past, one of the extreme cases was funeral expenses after the death of a loved one.
  • Celebrity endorsements – In 1934, Wheaties started putting athletes on cereal boxes. It’s grown and grown ever since. According to Forbes, celebrities inspire consumer confidence. People use the product to identify with the lifestyle of the celebrity.  
  • Independent awards — People like impartial third-party evaluations. Lots of wine gets sold because scores are awarded by wine publications. These tags are called “shelf talkers.”
  • Getting something free — Perfume companies often offer a free gift with a purchase over a specific threshold. You spend more to get the “free” gift.

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