Retailers love the idea that consumers can be trained to view certain price points and markdowns as terrific deals. Just tweak the prices and wait for shoppers to bite. And when consumers get to the point that they can see through the manipulative promotions? Then it’s time to retrain them.
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JC Penney Reintroduces Fake Prices (and Lots of Coupons Too, Of Course)
In early 2012, JC Penney promised the end of “fake prices”—ones that were inflated just so that shoppers could be tricked into thinking the inevitable discounts represented amazing deals. Well, it’s already time to welcome back …
List Price = Joke Price: 4 Examples of How Original Prices Are Meaningless
When almost no one pays full price, what does “full price” even mean? From cars to college to health care, consumers today are surrounded by huge markdowns—which, when you think about it, wouldn’t exist if goods and services weren’t marked up so high in the first place.
In Major Shakeup, J.C. Penney Promises No More ‘Fake Prices’
Less than 1% of J.C. Penney’s revenues come from items bought at full price. By contrast, nearly three-quarters of merchandise sold by the department store chain is discounted by at least 50% off. What this tells shoppers is that …
Do Daily Deal Sites Exaggerate Their Discounts?
The presentation of a daily deal from Groupon, LivingSocial, and others is fairly standard. Along with a description of the deal, there are always three numbers displayed prominently: the original price, the discounted price, and …
Got a Job Offer? Why You Should Ask for an Implausibly High Salary
Upon being offered a job, the first step should be to pause and enjoy your good fortune. (Jobs are pretty scarce, if you haven’t heard.) Then, to start salary negotiations, toss out a ridiculously high dollar figure. The request …
GM Raises Car Prices Now So It Can Lower Them Later
It’s a screwy time in the auto business. Used car prices recently hit a 16-year high, while average prices paid for new cars also soared in May—at the same time overall new car sales slumped that month. Now that prices seem to …
5 Assumptions No Smart Consumer Should Ever Make
In some situations, paying more doesn’t get you more, and paying the same costs you more in the long run.
Why ‘For a Limited Time Only!’ Drives Shoppers to Spend Like Crazy
When retailers roll out flash sales and deep discounts, the actual price of the freshly marked-down merchandise is only one factor enticing shoppers to buy. Rather than carefully considering whether the item is worth the newly discounted asking price, consumers are often prompted to buy during a short-lived sale because stumbling upon …
Smart Holiday Shopping Tip: Bring Your Psychologist With You to the Mall
What, does that sound impractical? If so, consider at least reading these two stories filled with insights that’ll help you make smart purchases—and help you avoid ones you’ll regret so much you’ll have to talk them over with your shrink.
How You’re Manipulated into Buying Stuff You Don’t Want and Paying More Than You Should
In these games played by marketers and retailers, you’re the puppet, and the puppeteers are artfully, stealthily steering your hand into your wallet where the credit card rests, waiting to be swiped.
