Do you ever wonder how stores get you to spend $400 when you were planning on just going into “look”? Sellers have certain tricks that do and think about to ensure that the consumer walks out of their store with some purchase. According to Time Magazine, there are more than ten tricks stores do for a consumer to buy more than intended. Because institutions are the “rules of the game” that influence choices, moral principles, superstitions, and cultural values influence people’s decisions. In this situation, the consumers take values and morality and become heavily influenced by the culture and environment of the stores.
Some may notice that many advertisements and campaigns have either a family aspect or some childhood scene. This is no coincidence. Recent studies show that “nostalgia makes people value money less and feel willing to pay more for purchases.” They use the emotion of the consumer to get them to pay more for things that they normally wouldn’t buy because of these sentimental ads. Another shocking thing that some stores do, such as Gucci, is they act more pretentious to their customers. This may make a customer think they would walk out of the store if a seller acted like that, but it is the opposite. It is shown that consumers then want to feel special and apart of their crowd, therefore they are inclined to show off and buy more. Another trick sellers may do on costumes of luxury goods is give out non-food luxuries while they shop. Researchers show “Consuming even one free chocolate increased shoppers' desire for nonfood luxuries—including expensive watches, dressy designer shirts, and Mac laptops—right after eating it.” Although this seems crazy, it has proven to be true again and again. Just one simple thing can make someone spend thousands.
Sellers also have tricks that make a shopper less price sensitive. One idea was getting interrupted during a shopping experience, makes one less price sensitive. So if a worker in a store interrupts you when you’re in the middle of shopping and helps you out, it makes you less worried about the price, therefore willing to spend more on a luxury good. Another idea is going to a store vs. online. For example, many more people go to the Apple store to buy the new iPhone or MacBook vs. just going online. The actual tactile process of holding the good and looking at it makes one more inclined to buy that product. Your willingness to pay more increases the more you touch the product. Another way designer brand get consumers to spend more is as simple as taking the dollar sign off of a product ($400 vs. 400). A Cornell study shows that it “gets people to spend 8% more.” This may seem like a small percentage, but over such a big market, it makes a big difference. Lastly, the atmosphere and culture of a store can make a consumer spend more on a luxury item. Ambient sounds and smells can make consumers less careful with their money. Therefore they are more inclined to buy more. In an appliance store, “researcher Lindstrom pumped in the smell of an apple pie, and the sales of ovens and fridges went up 23%”. The culture of a store increased a consumer’s incentive to buy more. Although all these things may seem insignificant, they do prove to work and increase the chances a consumer will spend more. So next time you go into a store, try noticing any of these factors mentioned.
Next Question: Is buying higher quality goods benefitting U.S. economy?
