The Psychology of Shopping

The holiday season has arrived, and if you're anything like me you've been trying to save up some money for some special gifts for the family and your friends. You might also give yourself a budget so you don't over spend. But out in the corporate world, they have deployed an army of advertisers and marketers to lure the money right from your wallets and into their bank roll. Many experienced advertisers and marketers use deceptive forms of psychology, subliminal messages for example, to appeal to your emotions and senses. Impulse buys, strategic display of product, and discounts are some of the tactics and tricks stores use to grab your attention and entice you to buy. Once you learn the following strategies retailers use, you will become more aware as a shopper and more than likely save some money!

After circling the parking lot for nearly an hour, you rush your way in to find only what you need and to get out quick. But retailers want you to stay as long as possible, and they know how to slow you down and make you "smell the roses." As you enter a store, you have to maneuver around the many tables with displays which are typically high profit margin products like the fashion of jeans or polo's. They are only interested in keeping you entertained and interested so you will spend more time shopping. Theses tables, however, do more than display items and products.

Cosmetics and shoes are big impulse buys for most women. Usually, the cosmetic is the first department you'll have to pass to get to the rest of the mall. If you take a close look, you will typically find the shoe section close by the cosmetics section. These departments go hand in hand, appealing to one impulse to the next. Also, if you look carefully, most registers are filled with smaller items like an accessory or add-on. These carefully placed items are to encourage more sales through impulse buying. You don't necessarily have to avoid the displays and impulse buy items, but if you don't need it don't buy it!

This is the season of discounts, sales and special offers. But unless you truly understand the math behind these special discounts and offers, you're not getting a special deal. A lot of retailers use multiple discount promotions. "Get 10% AND get an extra 20% off today only!" Sounds like a familiar promotions right? Sure the price is lowered, but do you think you're getting 30% off? Here's how it works: Say you're buying something that is $100. You get 10% off $100. So you have $100-10% ($10) which gives you $90. Then you take an additional 20% from the $90, which give you $90-20% ($18) = $72. Now take 30% off from $100, the result it $70. Now two dollars may seem like chump change, but if 1,000 people take advantage of the "special discount" then retailers will bag an extra $2,000. Not too shabby. So the retail conglomerates have appealed to your emotions through impulse buys and your psyche through color and elaborate displays, what about your other senses?

Lighting, music, and the use of smells and colors are all critical to your mood and ultimately your behavior. Bright lights can gives a modern feel, while spot lighting is the classic method of attracting customers to a specific product. Using "cool" music invites fashion conscious individuals to the "cool" stores. And using classic music creates an atmosphere of exclusivity. The use of smells and colors are powerful tools to create mood and other associates.

As you can probably tell by now, these are just SOME of the strategies used by marketers to bait, lure and attract you; hook, line, and sinker! But now you're prepared for those traps we call impulse buys and high profit margin displays. Happy shopping and happy holidays.