Effie Zahos reveals some of the marketing tricks used to get us to spend money. Would you fall for these mind games?
I spent $160 to be treated rudely. No word of a lie. Last weekend I not only paid $160 for the promise of receiving bad service but I tipped them for it too. Who would have thought a restaurant that promoted bad service would work?
“At Karens you will be greeted and waited upon by rude waiters and forced to play a variety of games. Karen’s Diner is a place where you can complain until the cows come home because we literally don’t care,” the website reads.
Whoever came up with this concept is a marketing genius. I mean, when you think of how many restaurants consumers have to choose from and the fact that most of us are opting to eat in rather than go out, thanks to the rising cost of living, it’s no surprise restaurants are coming up with clever gimmicks like this to stand out from the crowd.
It certainly worked on me. Don’t get me wrong, the burgers were great but the bad service was the reason we went there in the first place. It got me thinking about all the other marketing gimmicks we can fall for.
There are a number of tactics out there that are designed to make us spend more. And, I hate to say it but I have fallen for a few of them.
Yes, this is one that got me! It sounded too good to pass up but did I really need another pair of shoes? Probably not. Remember, just because something is on sale doesn’t mean you will make a saving. If anything, it just goes to show how much prices are usually marked up.
This is described as ‘fear-based marketing’ because these types of messages tap into our fear of missing out. Creating that sense of urgency gives us the extra nudge to make the purchase.
Fear-based marketing isn’t always negative. Think of clubs, such as Costco, where you need to pay membership fees in order to get further discounts. By limiting access to members only the message here is that you may miss out on exclusive member deals if you don’t sign up.
If you feel tempted by a message like this then stop and think about whether you really need it or if scarcity is making you want it.
Have you ever bought a more expensive item because the price of another influenced you? If so, you’ve probably experienced the decoy effect.
National Geographic ran an experiment to test how the decoy effect influenced consumers. First, they offered one group of moviegoers two choices – a small bucket of popcorn for $3 and a large bucket at $7. Nearly everyone went for the small. It appears the $7 bucket just felt like a rip off.
The next group was offered three choices – a small bucket for $3, a medium bucket (the decoy) for $6.5 and a large one for $7.
All they did was add a medium bucket and then suddenly the large one became irresistible. Everyone was buying the large bucket because when they compared it to the medium offer it represented better value. In the end, they all spent more.
The key to not falling for the decoy effect is to only buy what you need and don’t be swayed by what you perceive to be better value.
This is essentially the good old “If you order today, we’ll throw in this fantastic set of steak knives for free!” Cosmetic companies have this trick down pat. Spend $100 and you’ll get a free make-up bag with miniature creams and lipsticks. The lipstick might not be a colour you’d usually wear but, hey, that didn’t stop you from spending $100.
It’s great for the retailer because they don’t have to discount the product and you love it because you get a freebie. It’s a win-win situation … but is it?
The question to ask yourself is whether you would buy the product on its own merits. If the answer is yes, by all means, go for it.
Here’s to great burgers with bad service.
Effie
Cover image source:HobbitArt/Shutterstock.com
This article was reviewed by our Editorial Campaigns Manager Maria Bekiaris before it was updated, as part of our fact-checking process.
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