Are we really in control of our buying habits? Or are we being tricked into buying products we don’t really need? It’s easy to think when entering a store (online or offline) that we will come out again with exactly what we planned to buy. But the reality is often somewhat different. We go to buy one item and come out of the store with a whole shopping bag full.
Companies understand the human mind is surprisingly easy to influence one way or another. Retailers and marketers have honed their skills in optimizing the way they subtly persuade shoppers to make more frequent and expensive purchases.
Nearly every aspect of our shopping experience, whether in a store or on a website, is manipulated to ensure there’s a greater chance you’ll part with more of your hard earned cash than would otherwise be the case.
A consumer’s experience has been engineered based on decades, even centuries, of psychological studies into human reasoning and shopping habits. Consumer research plays a huge part in what you will see, hear, feel and experience when you enter a store. Everything is set up to entice you to spend more.
So what are some of these psychological tricks companies use to persuade you to splash the cash?
Priming
Priming is a marketing process by which a prospect is exposed to subtle suggestions which can potentially influence subsequent behavior. It bypasses the person’s conscious reasoning and heads straight for the subconscious mind.
While it doesn’t convince people to make outlandish purchasing decisions, priming does lay the foundation for a person to see a reasonable argument for making a purchase rather than not making a purchase at all.
A common example might be the placement of beautiful sunny beach scene images in a holiday booking office, which inspires people to pay for more expensive beach holidays in the sun.
Words, colors, sounds and scents also play a part. Red colors can influence decisions relating to safety, which can be beneficial to retailers of safety equipment, for example.
The Decoy Effect
This is when a company includes an additional option designed to make you purchase a more expensive product or service.
For example, on a pricing page a company may offer two buying options, Product A and Product B. Users are forced to choose between the two. They can opt for the less-better and cheaper product (A) or pick the better but more expensive product (B).
This is often a difficult decision for consumers, who carefully weight up the pros and cons, generally going with the cheaper option in the end.
The decoy effect involves adding a third option – Product C – otherwise known as the decoy.
The decoy product is priced at a very similar amount to the most expensive product (B). This puts a suggestion into the prospect’s mind that the more expensive Product B is in fact the best option. It adds weight to the perception that the more expensive Product B is in fact a bargain and the only sensible choice to go with.
Look out for this ploy when choosing between three or more pricing options on a sales page.
The Illusion of Scarcity
Scarcity marketing is where a limitation is placed on a product or service. Common limitations include a time limit in which to make a purchase or the claim that a product will soon be sold out or unavailable. The ploy creates a sense of urgency with often aggressive calls-to-action. Shoppers are therefore motivated to make a purchase before the item or service they need vanishes.
These limitations are usually accompanied by price reductions, free gifts, bonus items, and increased subscription benefits, which sweeten the deal.
Scarcity marketing works because it pushes buyers into immediate action. People naturally tend to put off an important buying decision, often waiting until they have more time, money or use for the product or service in question.
When there’s a short time limit or imminent shortage threat then there’s no time to procrastinate. People act, and sometimes make decisions they wished they’d spent a little more time thinking about later.
Be Aware of Selling Tricks
When next shopping for a product or service, whether in a store or via a website, look out for some of these selling tricks. They become obvious when you know what to look for. These insights can also help save you money and frustration, while at the same time helping you spot the genuine bargains beneath the marketing hype.
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