I am a sucker in the produce aisle at the grocery store. When shopping at my local Harris Teeter, whenever I see the bright yellow 2/$5.99 or 3/$9.99 signs by one of my favorite fruits or veggies, I immediately head toward the item and grab 2-3 cartons. While in the back of my mind I know that often the produce may be on special because it is quickly approaching its “best if used by” date, I still tend to grab 2 or 3 cartons of the fruit and head on my way—because I just know that it is “such a good deal.” Often, I also know that it may be difficult for me to consume all of the fruit prior to it going bad but am up for the challenge.
I also know that often times, one can still realize the lower price even by buying only one carton of fruit instead of 2 (ex: one carton alone would cost ~$3 (if the deal were 2/5.99) versus its normal price of say ~$4), but often I still pick up two cartons.
Why do we continue to take the “deal” (buying 2 cartons) even though we can often get the promotional price by buying only 1 carton? And does anyone else always instinctively go for the 2 or 3 cartons rather than just 1 or am I the only sucker in the produce aisle?
I'm right there with you, Amy! I did this just last night and am now stuck with tomato lunches, dinners and salads for the rest of the week...
ReplyDeleteThat "deal" mentality is a fascinating trend for marketers and especially recently given J.C.Penney's decision to cut out the couponing and take the "Best Deals Everyday" methodology in response to the couponing wars that would occur between retailers. There are a couple of articles that talk about not only the strategy behind it, but also the financial ramifications of the consumer backlash after the decision was made:
http://www.businessweek.com/articles/2012-08-09/ron-johnson-on-the-progress-of-his-j-dot-c-dot-penney-remake
http://www.reuters.com/article/2012/08/29/us-jcpenney-shops-idUSBRE87S17A20120829
The idea of a deal seems to trigger the pleasure/pride center of our brain, making us feel proud of being "money-concious" and somehow, outsmarting those darn companies that are always trying to take our money. It causes us to change our preexisting behavior and oftentimes to overlook those other factors which do not fit within the taking pride element.
I also wonder if it doesn't fit into that great American generalization: more is better, isn't it?
The JC Penny strategy is smart-no one has time to clip coupons anymore or for some, they may not have time to sift through coupons online. Making the claim that they have the best prices everyday makes shopping easier for the consumer and they may feel that they've accomplished something by potentially saving money. It's something about a "on sale" sign that gets me hype as well!
DeleteI do the same thing when shopping too! I try to remind myself though that sometimes you can still take advantage of the discount volume price when buying one instead of two of the deal item (getting the deal price when only buying one container of blueberries instead of the two that HT is advertising). The problem with produce is that unless you are able to freeze it, the odds are that I will not be able to eat the greater quantity before it pasts its prime. Hence the dilemma: Is more actually better if you can never actually enjoy "more" the way you are meant to? Or is this promotion just another way for marketers to make buyers feel better about their purchase decisions and have less buyer's remorse, knowing that they still got a deal on the the product they brought home, even if they never got to enjoy it all?
ReplyDeleteI am a sucker for a deal as well. In fact, so many Americans are Costco designs its stores to drive impulse purchases. I watched a CNBC special over the weekend that took an in-depth look at the company’s strategy.
ReplyDeleteLimited signage forces consumers to walk down every aisle; the idea is to force them to interact with products that are not on their list. Because Costco only marks products up 15%, there is a plethora of deals on each aisle. More than likely consumers will walk out the door with at least one item (let’s get real, items as you can only buy things in bulk) that was an impulse purchase.
The company has risen to the number two retailer spot in the US using this methodology. The annual membership fee is higher than that of Sam’s and BJ’s, $55, $50 and $35 respectively, and as a result attracts shoppers with more disposable income. Costco uses a third-party buyer to procure luxury handbags, jewelry and electronics at a significantly discounted rate. These items are typically here-today-gone-tomorrow and inspire a sense of urgency in the customers, who in many cases can afford such a purchase.
In addition, Costco stocks a maximum of four options per category. Meaning customers do not get overwhelmed in the mayonnaise section and can instead focus their attention on deciding whether to pick up that Prada handbag or the limited-release French Boudreaux.
So the next time you head over to Hanes Mall Boulevard to stock up on paper towels and highlighters, beware of wandering the aisles, or you might spend more than you bargained for.
http://www.cnbc.com/id/46603589
That's a very interesting observation! I've seen this play out numerous times among my sisters. For instance, on Christmas Day, my parents would give each of us some money and we would then go out and buy some presents. When we got home we all loved to show each other what we got. (Relevant Context: I have five older sisters and no brothers. Deep breath...sigh...continue with blog) However, I noticed that without fail, on every item, with every sister they each explained with just as much enthusiasm the deal that accompanied the item as the item itself.
ReplyDeleteQuestion: Is this a female reaction? Are females, driven by something within their psyche, significantly more prone to this type of advertising than males? I realize there may be "outliers". Let me know your thoughts.
I think that makes me the contrarian!
ReplyDeleteGrowing up, my parents pounded it into my head that most of the promotional sales involving quantities did not require me to buy the number advertised.
After years of enduring questions and comments like "How much is that per ounce?" and "At Publix, BOGO just means '50% off.'" I think I've become fairly immune to those tricks. However, one gimmick that still gets me most every time is the mark-down.
In his book "Influence," Robert Cialdini tells a story about a woman who managed a jewelry store in the Southwest and could not seem to move any of the turquoise jewelry in the shop. After trying all the normal tricks (having sales people push it more than usual, moving it to the front of the store, etc.) she wrote a note to a clerk to mark it all down by half. But when the store clerk misinterpreted the note and doubled the prices, the merchandise started flying off the shelves.
Apparently, the tourists visiting the store didn't know that turquoise is a fairly inexpensive material. And the low original prices suggested that the jewelry was cheap "costume jewelry." However, when the prices were inflated, people interpreted the higher cost as a sign that the jewelry was of high quality. In the minds of customers’ the items that would have been "cheap souvenirs" were now "jewelry."
Honestly, I don't think I would have fit into either of those original customer categories. But the story is still very relevant to me. Had the jewelry been originally priced at twice the fair market value and then marked down by 50%, I have to admit that I would have been intrigued. In my mind, only suckers pay retail. No matter how good the deal may seem, if I am being asked to pay the MSRP, I am not interested.
People like me are the reason that JCP is having such a difficult time transitioning from High-Low pricing to EDLP, but I’m not sure that the mark-down trick is going to work on me for much longer. Sites like Gilt, Ruelala and Fab have made me completely dubious of the price anchors that are used to lure in bargain hunters like myself.
“Wow, a $3,000 watch from a supposedly famous maker that I’ve never heard of now marked down to a mere $250?!” I think not.
Such promotions and deal-a-day websites have left me skeptical, and I think I’m carrying that skepticism with me into brick & mortar stores too.
So, maybe my there is a benefit to all the time I've wasted shopping online...
I agree in that I often fall for the advertised deals, as well! As a consumer, I feel that I am not taking advantage of the deal if I only purchase one carton of strawberries, for example, when the deal is "2 for" a lower price. (Even though this is not always the case). I also feel the same when there is a coupon for a certain item; even though I may not need it at the time, I still feel drawn to purchase it anyways. Furthermore, the "NEW item" signs are also a pitfall for me as a consumer. I believe I picked this up from my dad's shopping habits in that he never fails to add one to the cart.
ReplyDeleteI think this also brings up an interesting point as to not only how marketers communicate and influence with consumers but also how our friends and family influence our buying habits, just as Kevin noted his parents' influence. Do you think as consumers we also fall for promotional ads because we're accustomed to always buying the stated amount because we truly believe it's such a "deal" or more out of a consumer 'habit' from our own tendencies and traditions?