This was published 3 months ago
Opinion
Time pressure, gift guides: Behind the tactics used to lure Christmas shoppers in – and buy more
As peak Christmas shopping creeps up on all of us, so do the excessive retail promotions enticing consumers to buy more – urgently – before time runs out.
Having just seen the last of Black Friday sales, there are still plenty of tips to spend within your limit without having to bend your budgets out of shape this silly season, while still buying the presents on your shopping list.
Everybody loves a good deal or a bargain. At a time when emotional spending such as self-gifting can run high and stress shopping (“it’s just two days ’til Christmas!”) is causing a panic, retailers are using promotional prices such as buy one, get one free, 3-for-2, or “charm pricing” with $2.99 best buys to lure us in.
These tactics are used to increase the perceived value of products and designed to make shopping decisions feel easier.
But what can sometimes feel like a good deal, can quickly turn into a regretful purchase.
We also see tactics to make spur buyers into action: short-term discounts, limited time deals and 24-hour flash sales designed to compel immediate action triggered by urgency.
Consumers feel the fear of missing out on a bargain or rare opportunity.
While the strategy is designed for quick action, it also triggers impulse shopping and less time for the consumer to consider their product purchase or shop around for better alternatives.
Consumers are quick to believe a discount when they see slashed prices next to the original price, or signs telling us a product is up to 50 per cent off.
These mental shortcuts give the impression of a sale but, upon a closer look, the price difference maybe not too different to any other time in the year, or there are only a handful of items with the advertised 50 per cent discount.
It might not be as substantial a promotion as it can lead you to believe.
Other ways which retailers are supposedly making shopping decisions easier include “new products”, “gift guides” and “gift ideas under $10”.
But while they are helpful mental shortcuts to gifting, they might be used to create a sense of novelty or a means to clear out seasonal stock.
One might end up with more Christmas themed T-shirts than we care to wear.
At a time when emotions can run high during peak festive frenzy, it is also important to shop with a degree of caution.
While sales might mean better perceived value, it can lead to overspending and consumers even making up your shopping basket to meet “free delivery” and buy more than what you plan or need.
Easy spending is further fuelled by buy-now, pay-later promotions and shopping is essentially just one click away. This may result in excess and post purchase regret.
So, what happens when the festive feelings start to subside?
This often comes with post-purchase regrets and many change of mind for items you have ordered.
Under the Australian Consumer Law, consumers are only entitled for a refund if there are faults with the product.
While most retailers offer a refund or exchange within a specified time period, it also requires the item is returned in good condition, unused and with its original label intact.
This also means if someone found the product cheaper elsewhere or simply regrets a purchase, it might not be easy to return.
In some cases, hidden costs for postage handling can be incurred, adding further delays to a refund and/or contributing to additional debts to pay off.
Having said that, many retailers are bringing a festive cheer with genuine good value and while some items may be outside of the usual shopping budget, it is a time to give yourself and your loved ones a treat and enjoy the festive season.
As a savvy shopper, there is no harm in exercising a dash of common sense and a pinch of caution during this festive sales season.
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