Art, obsession, and identity
This tactic is known as price framing. For example, a business changes the description of an overnight shipping charge on an offer from "a $5 fee" to "a small $5 fee." If you aren't thinking carefully, the adjective "small" might convince you to spend your money.
Car dealerships often focus on the monthly payment, asking how much you can afford per month. So if you're buying anything requiring monthly payments, look at the annual cost and how much you'll have spent when your purchase is completely paid for.
These companies combine several services into a single package at a slightly discounted rate. And they know that customers might be tempted to spend more upfront to save in the long run.
Another form of price framing, many ads will inform you that for just the price of a cup of coffee per day, you can afford a certain insurance or cell phone plan.
Basically, the idea behind price framing is that while the retailer can't change the price, they'll try to change the consumer's perception of it.
Since consumers end up paying by installments, they don't notice that they'll pay more over time.
Insurance companies are well known for doing this, as well as a lot of telecommunications companies.
But once the users are hooked, they're more likely to pay for the premium version, which is the purpose of freemiums.
Also known as BNPL, this is actually a huge marketing trick that companies use so we'll spend more.
With this tactic, companies will offer the most basic version of a product for free.
This phenomenon is actually called shrinkflation. It basically means that the packaging gets smaller, but the price stays the same.
While you shouldn't judge a book by its cover, you should definitely judge a product's packaging before you buy it. Consumers often think that a taller, narrower package holds more product, even when it doesn't.
Yes, loyalty programs are good for the customer in that you'll get perks and discounts. But only after you spend a lot of money!
According to a study from Cornell University, consumers tend to spend more when currency signs are left off the menu.
However, the store never intended to sell the shirt for US$89. The plan all along was to charge consumers $55.
And, of course, you may find yourself reluctant to go to the competition because of loyalty points, which benefits the company.
For example, a retailer will post a sale sign that advertises five items for US$5. However, the consumer may not know that they can purchase just one item for US$1. So they'll buy five items, thinking they got a deal.
Another sneaky marketing tactic, priming is using a stimulus like a word, image, or action to influence someone.
A lot of clothing companies pull this one. For example, you see a US$89 shirt on sale for $55, and think you're getting quite a deal.
Today, airlines use the scarcity principle all the time. Just think of the "only a few tickets left at this price!" message.
For example, marketers will try to stimulate or trigger positive memories in consumers, which will result in them purchasing their product. It's sneaky, but it often works.
Sources: (Business Insider) (U.S. News & World Report)
See also: Simple ways to make your cash last
This is a popular marketing trick shoppers, especially in these inflationary times, will want to be aware of.
One thing marketers know is that people are more likely to desire things if they seem like scarce resources.
Surprisingly, a study found that when a consumer was offered the choice to buy similar merchandise, more people would purchase the item that ended in nine. Even if it cost more than the similar item!
Basically, retailers like prices ending with the number nine, such as US$5.99, because consumers tend to think, "Oh, that's less than US$6!"
All of us hope to find great deals when our eyes are drawn to that bold 50% off sign. However, you’ve just stumbled onto one of the more popular marketing tricks.
In the shop, or while you're checking out items online, you'll notice the fine print, and it actually says "up to 50% off." This mean an item can be discounted by any amount between 1% and 50%. What a bummer...
From social media ads to TV commercials, you're constantly being bombarded by people trying to sell you stuff. And marketers have mastered plenty of tricks to get you to spend your hard-earned money. While many of their tactics involve a surprising level of consumer psychology, some are just downright shady. By having your vulnerability to different styles of propaganda exploited, it's easy to get tricked into buying stuff you don't need, and paying more than what it's worth.
Want to put a stop to this? To learn the strategies marketers use to lure consumers, click through the following gallery.
Restaurants may also display a few higher-priced items, knowing you probably won't choose them, but rather more of the reasonably priced options.
Sneaky marketing tactics: How they get you to buy
Designed to take your money, don't fall for these sneaky marketing tricks
LIFESTYLE Tricks
From social media ads to TV commercials, you're constantly being bombarded by people trying to sell you stuff. And marketers have mastered plenty of tricks to get you to spend your hard-earned money. While many of their tactics involve a surprising level of consumer psychology, some are just downright shady. By having your vulnerability to different styles of propaganda exploited, it's easy to get tricked into buying stuff you don't need, and paying more than what it's worth.
Want to put a stop to this? To learn the strategies marketers use to lure consumers, click through the following gallery.