Ever found yourself caught in a “Buy 2 Get 1 Free” trap, spending ₹4,000 instead of just ₹1,200? You're not alone. The festive period is that magical time of year when the words “Sale!” and “Discount!” echo through malls and online stores. Many of us have been lured by this promise of savings, convincing ourselves that we’re not just spending money, but actually saving it. But if that’s the case, why is your credit card bill piling up and your closet overflowing? Clearly, it’s time to question this so-called "savings."
Nothing but an assumption
Shopping is fun, especially when there’s a sale. But here’s the catch: when a brand advertises an item originally priced at ₹1,000 for ₹700, we often fixate on the high original price and feel like we've scored a great deal. In reality, brands benefit from this tactic by inflating their reference prices itself.
On top of that, we tend to overlook the quality of “free” products that come with our purchases. We end up paying significantly more for an expensive item just to snag that cheap ‘freebie,’ often ignoring its actual value.
Double discounts? More like trouble discounts
Consider this: you see two offers - one with a 20% discount plus an additional 25% off and another with a flat 40% discount. Most consumers will gravitate towards the double discount. However, a quick calculation reveals both offers give you the same 40% discount because the original prices are manipulated to align.
Research shows that consumers perceive the double discount as superior because 20 plus 25 feels greater than 40, even though they are economically equivalent. The moral of the story is that simpler discounts are often more effective than complicated ones.
Please judge a book by its cover
Imagine you walk into a store looking for a hat and spot two options: one priced at ₹1,299 and another at ₹699. You’re likely to choose the cheaper option simply because it’s next to the more expensive one. This is known as the ‘context effect’ - placing a pricey item next to a less expensive one makes the cheaper one seem like a steal, even if it’s of lower quality. Retailers exploit this psychological trick to make overpriced items appear more appealing.
Same same, but different
Did you know that a 33% discount is actually better than getting 33% more for free? Despite this fact, many of us prefer bonus packs over discounts due to what Akshay Rao from the Carlson School of Management calls “numerical blindness.” His research indicates that people often misinterpret similar numbers in different offers as equivalent deals.
Even savvy shoppers can be misled by these tactics. To avoid falling into this trap, always do the math before making purchases during sales - conscious decision-making leads to better deals.
Whether it's shopping or simply your ‘girl math’, understanding the psychological tactics at play can empower us to make better decisions. As consumers, being aware of how discounts work helps us avoid overspending during sales.
So, next time you see those attractive sales or hear about simultaneous elections, take a moment to think critically - your wallet will thank you!
Comments