3 sneaky tactics that websites use to make you spend Your Money and Your Mind
Transcriber:
Worldwide, online retail
has been on the rise.
In 2019 alone,
shoppers spent nearly
3.8 trillion dollars online.
And to keep those figures climbing,
some companies are pulling out
all of the stops
to hold your attention
and to keep you spending.
To help you regain control
of your shopping environment,
I’ll identify three of their tactics
and share three tips to counteract them.
[Your Money and Your Mind
with Wendy De La Rosa]
One online gimmick that sites use
is gamification,
and this is where websites
use game design elements
to get you to spend more time
and more money on their sites.
Now, some sites have
a virtual wheel for you to spin
to get a chance at that day’s discounts.
Others, they let you accrue loyalty points
based on how you interact with the site.
And that kind of gamification,
in my mind, is really dangerous.
In one classic experiment,
lab rats were more captivated
by the random chance of pushing a lever
and receiving a food pellet
than by the certainty
of a fixed food schedule.
And we as humans are just the same.
We’re enticed by the chance to win.
Just like at a slot machine in Vegas,
you increase your dopamine levels
every time you try your luck.
So my tip here is to avoid
temptation altogether
by unsubscribing from
online shopping emails.
You can’t buy what you can’t see,
and these emails are constant reminders
that are intended to lure us
back to the site
with its gamifications and its gimmick,
when you’d otherwise
not be thinking about them.
A second tactic online
retailers use is scarcity.
Many sites now tell you
how many other customers
are also viewing the same item,
making it seem like
that item is very popular,
and it’s likely to go quickly.
Similarly, websites will use
a timer for your basket,
pushing and pushing the message
that these potential items
won’t be available for long.
Research shows that the perceptions
of a product’s scarcity
can increase its value
in the eye of the shopper
and increase a shopper’s
willingness to buy.
Scarcity can also make people
feel more competitive and selfish as well.
So here’s my tip to help
you combat scarcity:
when scarcity is tempting you,
back away from the website,
back away from the car
and sleep on it.
That can help you decide
whether or not you really need
whatever it is that you
were planning on buying.
Leave the site for at least an entire day
and see if you’re still
itching for the item.
This approach works best
if you use an incognito browser
so you won’t be haunted
by the ads for the product
everywhere you go.
The third tactic that companies use
is to allow you to pay in installments.
A number of e-commerce sites
have adopted payment schemes
that will let you order an item
and pay for it later.
Now, installment plans are useful
if you’re replacing
a large, expensive item,
like a broken refrigerator.
But I think these installment plans
veer towards predatory
when you’re purchasing less urgent,
less important items.
Looking at small monthly payments
psychologically decreases the cost
of those new sneakers
or new pair of jeans.
And that mental trickery
means that you’re more likely
to buy additional items.
And while it may feel different
from a credit card,
you still owe these companies money.
So at the end of the day,
you’re still taking on debt
and potentially adding
late fees and interest,
and you may find yourself owing a lot more
than the original sticker value
for those jeans.
So here’s my third and final tip:
above all else, do not use
these payment installment plans.
If you want an actual discount,
there are browser plug-ins you can use
that will help you find the best deals.
Online retail has made shopping
incredibly convenient,
but not every day needs to feel
as overwhelming as Black Friday.
By putting these tips into practice,
you can tune out some of the tricks
and the gimmicks,
and once again, regain control
of your shopping environment.