Time and time again we hear instances of marketers using psychological trickery to lure unsuspecting consumers into purchasing their products.
Even in New Zealand’s thriving tech scene, businesses employ clever tactics that leave many wondering how they ended up with items they never really needed.
To protect your wallet and make informed choices, it’s crucial to understand these marketing strategies.
Here are some tactics marketers use to trick people into buying their stuff and tips on how to avoid being caught by their schemes.
Price anchoring
Marketers use price anchoring to influence your decision-making by presenting an initial high price as an anchor for comparison.
For example, they may advertise a product as “$99 instead of $150.” This makes you believe you’re getting a significant discount, although the real value of the product may differ significantly from the anchor price.
Avoidance tip: Conduct thorough research before making a purchase. Comparing prices at several stores or online can give you a better understanding of the product’s true value and prevent you from falling prey to anchoring schemes.
Scarcity principle
FOMO (fear of missing out) is at the heart of this tactic. Businesses advertise limited stock availability or time-sensitive deals (e.g., “Act now! Supplies are running out!”) to urge consumers to take action immediately.
The scarcity principle is built on the idea that a product becomes more desirable when its availability is limited.
Avoidance tip: Be mindful and slow down when making decisions. If the deal sounds too good to be true or you feel rushed into making a purchase, take a step back and consider whether this is something you truly need or want.
Fear of missing out
Marketers use FOMO to capitalise on consumers’ fear of missing out on something valuable. They might display notifications like “7 of your friends bought this recently” or “You only have 1 hour to take advantage of this deal!”
This tactic is prevalent in online shopping, where peer pressure and time-sensitive offers create an urgent need to purchase.
Avoidance tip: Implement a cooling-off period before making significant purchases. This can give you time to assess whether the product is truly worth its price and if you genuinely require it.
Decoy pricing / contrast principle
Decoy pricing involves offering seemingly less desirable or expensive products alongside more attractive options. Marketers nudge consumers towards purchasing the more expensive option, believing it to be of better value.
This strategy tricks the consumer into thinking they are getting a bargain when they might have otherwise opted for a cheaper alternative.
Avoidance tip: Always consider your needs when comparing products and search for alternatives beyond what is immediately presented. Know your budget and stick firmly to it.
Reciprocity
Businesses often use small gifts or free samples to entice consumers into making a purchase. The reciprocity principle dictates that individuals feel obligated to return a favour when someone gives them something—the marketer hopes that their generosity will trigger the consumer’s compulsion to offer something back (usually by purchasing a product).
Avoidance tip: You are not obligated to make a purchase just because you received something for free. Treat free samples as marketing tactics rather than genuine acts of kindness.
Halo effect
Marketers often associate their products with positive attributes, celebrities, or well-respected brands to create a ‘halo’ of positivity around their offerings. This psychological trick makes consumers more likely to purchase because of the positive image, not necessarily because of the product’s quality or value.
Avoidance tip: Focus on the product’s specifications, customer reviews, and independent ratings instead of its endorsements or associations. This approach helps to evaluate the product based on its merits rather than its perceived image.
Endowment effect
This trick is about making consumers feel ownership of a product before purchase. By offering free trials, samples, or interactive experiences, marketers make it harder for you to part with the product because you feel like it’s already yours.
Avoidance tip: Be aware of the emotional attachment formed during the trial period. Evaluate the product as if you haven’t used it to ensure it meets your needs without the influence of the endowment effect.
Bait and switch
Advertisers lure customers with an attractive offer that is no longer available or was never intended to be fulfilled, only to ‘switch’ them to a more expensive alternative.
Avoidance tip: If the original offer is not available, be prepared to walk away—research alternatives in advance to avoid making a rushed decision influenced by the switch.
Sensory marketing
This tactic appeals to the senses to affect the consumer’s perception and behaviour. For instance, the smell of fresh bread in a supermarket can increase the likelihood of purchasing not just bread but other unrelated items as well.
Avoidance tip: Be conscious of how your senses might be influencing your purchasing decisions. Try to focus on your shopping list and the products’ practical benefits rather than the sensory experience.
Greenwashing
Some companies use greenwashing tactics, exaggerating or fabricating their products’ eco-friendliness. This can mislead consumers who prefer to shop sustainably, making them believe they are making environmentally responsible choices.
Avoidance tip: Look for certifications and third-party verifications of environmental claims. Research the company’s overall environmental practices to ensure they align with the green claims made for specific products.
Baader-Meinhof
After noticing something for the first time, there is a tendency to notice it more often, leading one to believe it has a high frequency of occurrence. Marketers take advantage of this by increasing the visibility of their products through repeated ads across different platforms you visit.
Avoidance tip: Be aware that increased visibility doesn’t necessarily mean the product is popular or the best choice. Take time to research and consider if the product meets your needs, rather than being swayed by its apparent ubiquity.
All up, conduct thorough research, stick to your budget, and embrace critical thinking when faced with seemingly irresistible deals or promotions. Remember: buyer beware!