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How Stores Get You to Spend
by
Pamela Kramer
Redbook, November 2005
Retailers work hard to
put the moves on your money. Here, 10 of their slick
tricks you'll never fall for again.
Ever stop off at the store for one or two items,
only to leave with one or two bulging shopping bags?
That's no coincidence. So to help you strengthen
your shopping willpower, we've blown the cover on
common marketing tactics used in supermarkets,
department stores, and more. Here, 10 free ways to
outsmart the experts who've been paid millions to
get you to spend more.
Give yourself a time limit.
No, seriously. Just
decide in advance roughly how long it should take
you to buy the things you need, then stick to your
schedule. Why this is key: The average consumer
spends more than $2 every minute she's in the
grocery store, according to the Food Marketing
Institute. So it's no wonder that many stores use
clever devices such as pleasant lighting, attractive
decor, tasty food samples, and music--whether
relaxing, soothing tunes or energizing, make-you-wanna-dance
ditties--to encourage you to linger. Well, don't get
sucked in! Give yourself a set amount of time to
accomplish your list, and then head for the checkout
as soon as you're finished, before that little
"something extra" catches your eye.
If you need only a few items, grab a basket instead
of a cart.
There's a reason why
shopping carts are bigger than ever: "A large cart
gives you the perception that you don't have that
many things in it, and makes you feel that you can
buy more," says shopping scientist Paco Underhill,
author of Call of the Mall. A small handheld basket,
by contrast, helps you stick to your short list
because when it starts to get heavy, you think,
Okay, I'm done.
Don't get sidetracked.
Have you ever noticed
that you have to wend your way past enticing
displays of baked goods and fresh flowers to get to
the bread and milk? "Marketers know that the more
stuff you see, the more you are likely to buy,"
points out David Urban, Ph.D., a professor of
marketing at Virginia Commonwealth University in
Richmond. Arm yourself with a shopping
list--organized by the supermarket's layout, if
possible--to help you stay focused on the task at
hand.
Buy chips in the snack aisle, shampoo in the
personal-care aisle, etc.
Food retailers and
other stores create the illusion of a sale by
displaying a product at the end of an aisle--called
an "end cap"--and marking it with a brightly colored
sign that says, for instance, "Low Price!" "Super
Buy!" or "Applesauce: $1.39!" Research shows that if
retailers stick a sign next to an item, sales
increase significantly--even when the price isn't
reduced at all. Don't buy into it. "Most people
assume they're getting a low price on an item when a
store calls attention to it, but that's not always
the case," says Elaine Notarantonio, Ph.D., a
professor of marketing at Bryant University, in
Smithfield, RI. Look at the displays to see what's
being featured, but make your final selections in
areas where similar products are shown together so
you can compare and be sure you're getting the best
deal.
Don't assume bulk = bargain.
The huge packages sold at warehouse clubs and some
supermarkets and superstores aren't always the best
values. "Some products cost less per unit in smaller
sizes, especially if you shop the sales and use
coupons," says Notarantonio. Check the unit price on
the shelves, and compare to smaller sizes. Also,
consider how much you can realistically use before
an item spoils or expires. A five-pound bag of
apples on sale for $3.99, for example, is no bargain
if the fruit goes bad before you
can eat it.
In department stores, work your way from the back of
the floor forward.
"Studies show that consumers are attracted to the
first items they see, so retailers place merchandise
with the highest profit margins near the front of
the store," says Notarantonio. Ignore those up-front
racks and tables laden with expensive stuff and go
to the back of the store first,
which is where you'll likely find merchandise with
the lowest profit margins, as well as clearance
items marked down by as much as 70 percent. If you
tune out the pricey, featured merchandise when you
first walk in, you might just decide to pass it up
altogether.
Focus on the fit, not the size.
Clothing manufacturers sometimes use a tactic called
"vanity sizing"--labeling clothes a size smaller
than what they actually are. "The idea that you've
lost a dress size makes you want to buy that skirt,"
says Underhill. But, c'mon, if you dropped a size,
you'd know it! So don't buy an article of clothing
unless it looks and feels great on you and you need
it.
If you need the entire outfit buy it--but if you
don't, don't.
Retailers try to capitalize on what's called the
"contrast effect" by displaying less-expensive
accessories next to higher-priced items (for
instance, they'll set out scarves with coats). "The
idea is that after spending $300 on a suit, you
won't mind spending $50 on a blouse to go with it,"
says Notarantonio. Look through your closet before
you shop so you know what you need--and won't get
snookered into an impulse purchase.
Look high and low.
The most profitable name brands are usually placed
at eye level because that's where they're most
likely to, well, catch your eye. In fact,
manufacturers often pay a premium for this prime
shelf space. For the best values, check out the
private-label and lesser-known brands on the very
top and bottom shelves, says John Stanton, Ph.D., a
professor of food marketing at Saint Joseph's
University in Philadelphia.
Skip the bells and whistles.
To appeal to status-conscious consumers, some
manufacturers use a strategy called "versioning":
They create different versions of a product by
adding features and using names like "basic,"
"deluxe," and "premium plus" (a tactic often used
with appliances, electronics, and software). "Many
people will spend extra to feel they're getting the
best," says Urban. So read the label, and if a
feature sounds good in writing but you have no idea
what it does (hyper-threading computer
technology--huh?), pass it up. Often the "basic"
version will do just fine.
Before You Buy Online, Read This
Internet retailers have their own web of tricks to
turn browsers into buyers. To shop wisely:
* Avoid tempting "shopping cart" suggestions, such
as "People who bought this DVD also bought…" The
reason: "Online retailers took at what you're buying
and offer products to go along with it," says
Deborah Moscardelli, Ph.D., an assistant professor
of marketing at Central Michigan University.
Pointing out what other customers purchased also has
a powerful psychological effect, she adds; this ploy
makes you think, Well, if other people got X and Y,
so should I.
* To find the deals, scroll to the bottom of a page,
or click on the "clearance" or "sale" tab. Like
traditional retailers, online stores often place the
high-profit merchandise where it's easy to spot,
usually at the top of the first page on the site.
* Think twice before you take advantage of a "free"
offer--as in, free shipping if you spend more than,
say, $75, or a free gift card with a $125 purchase.
"It's easy to think that you should increase your
order--but be careful, because you may end up
spending an extra $50 to save $10," Moscardelli
says.
* Compare prices at other online retailers to make
sure you're getting the best deal. Some Internet
stores keep track of your buying patterns and may
actually charge higher prices to previous customers.
And you can't always believe the flashing banners or
neon pop-ups that say,
"Lowest Price Anywhere!" So do your own research at
price-comparison shopping websites such as
shopzilla.com,
pricegrabber.com or
become.com.
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