Why Do We Buy More Than We Need?
Popular tricks used by marketers
Consumer choices are influenced not only by the quality of the goods but also by the brand’s image, the marketing mix (4Ps), or even how items are placed on a shelf. Knowing this, marketers use different methods to make products more attractive in the eye of the customers.
One of these activities is the proper placement of products in a store. For example, supermarkets set essential products such as milk and toilet paper in a place further away from the entrance. The reason is so customers have to walk past other shelves, risking the temptation to get more items in their shopping carts.
Small products such as chewing gums, chocolate, candy bars, etc. are usually placed close to the cashier so those consumers who are bored in the queue are reminded of the need to purchase them.
Keep reading to discover more methods used by marketing experts.
Decoy Effect
The Decoy Effect (or asymmetric dominance effect) is a popular marketing phenomenon according to which the product will be perceived as more valuable if the buyer can compare it with the less desirable option.
It is used by marketers in most retail stores and places like supermarkets, cinemas, or travel agencies, where clients can choose between different products and offers.
In the past, numerous experiments have proven the effect. A test has been done in a cinema where people had to choose between a small ($3)and a big popcorn box ($7), most of the people chose the small one.
However, when the marketers added a third option — a medium popcorn box for $6.50, most of the people chose the big one. It’s understandable because they had to pay only 50 cents extra and receive a lot more popcorn! Who could resist?
As you can see, this method works when a third option C is added to the already existing options (A and B) to increase the attractiveness and likelihood of choosing either option A or B.
That being said, the decoy effect is not a miracle solution for all purposes, and it doesn’t work so well in some cases. In an experiment with 2 HTC mobile phones, an iPhone was added as a third option. The result? Most people still preferred to buy the iPhone because of Apple’s strong brand image.
Compromise Effect
In contrast to the Decoy Effect, the Compromise effect describes people’s tendency to avoid extreme options and therefore go for the middle option when taking a decision. The uncertainty and perceived risk of purchasing the extreme options that may result in a feeling of regret afterward are the reasons for choosing the safe middle product or service.
For instance, a restaurant owner may deliberately introduce an expensive dish to the menu, not because of expecting that many clients would order it but to subconsciously lead customers to the medium-priced options. Even if almost nobody orders the expensive dishes, it’ll still be worth for the business because of the compromise effect. As clients have to choose between expensive dishes and cheaper ones, they tend to go for a dish next in price order, finding the middle ground. This is what happens according to the principle of avoiding extreme options.
Pleasant Atmosphere
Another way to increase sales is by setting the mood right and creating an enjoyable atmosphere for the clients who visit a store, coffee shop, or other places that involve a longer stay and as a consequence more time to buy things. This could be done by choosing the right colors, smells, decoration, sound and so on.
Research shows that classical music can increase a restaurant’s income by 10 percent. Carefully selected lighting is used to emphasize the freshness of products. The coffee aroma or the smell of freshly baked bread attracts clients to enter a store. A good atmosphere plays a significant role in satisfying customers.
Celebrities in Advertisement
Unknowingly, most people want to join the lifestyle of celebrities they see in the advertisement of products. Using celebrities increases the chance for customers to buy these endorsed products. Similarly, experts and authorities are used in ads to strengthen the image of a product. An example here would be a dentist explaining the benefits of a toothpaste brand. It makes the ad more believable and the product more trustworthy.
Selling Emotions
Modern marketers understand that it’s not enough to sell just a good product but it should provide something more than that: a feeling of happiness, health benefits, safety, prestige, status, etc.
Coca Cola is a perfect example of a brand that sells positive emotions. Coca Cola’s ads are all about happiness, good vibes, laughter, Christmas, spending time with family and close people, and positively associated emotions.
Promotions
Promotion is one of the foundations for marketing, widely used by all marketers to make a product more attractive. It can come in the form of discounts, gifts, free testers, and degustations. In the last years, most businesses use some kind of promotion such as Final sale (an inventory liquidation sale), Happy hours, Discounts for selected customer categories (discounts for seniors, for ladies, for people in green clothes, etc.), Discounts for actions on the Internet (“Like our fan page”, “Subscribe to our newsletter”), Related Products (50% discount on soda if you buy a big pizza), Discounts on selected product categories, Gift for purchase (“Get a cup if you buy our chocolate on $20”; “Buy one blouse and get the second for free”).
Promotions are a great contributor to making customers return back and keeping them satisfied.
- By using special promotions with collecting stickers/cards/stamps and exchanging them for gifts or bonus items, businesses get more loyal clients in exchange. The incentive of coming back to receive a free product or a desirable extra item is strong enough to make a person return.
In my personal experience, I’ve become a loyal client of a supermarket chain because of this type of promotional activity. For the past year and a half, I earned an excellent culinary book, two sets of wine glasses, a plate with cartoon characters, and two cutlery sets by simply collecting stickers.
To come back to the question — Why do we buy more than we need? There are many ways marketers trick and influence consumers’ decision as shown in the examples above. This doesn't mean that we as customers don’t want to buy the products or that we’re dissatisfied. On the opposite, in my sticker collecting experience, I knew that it’s a marketing strategy to incentivize people to buy more. Yet, I didn’t regret purchasing a little more than usual and was finally satisfied when stepping out of the supermarket. Creating a positive customer journey and rewarding loyal clients is what makes a good marketing strategy and benefits both the business and the client.
