How to Avoid Doom Spending This Holiday Season: Tactics Retailers Use to Increase Sales

As the holiday season draws near, a time often associated with shopping, it's vital for consumers to recognize the strategies retailers deploy to entice additional spending. The United States Public Interest Research Group (PIRG), an advocacy organization, has identified various tactics, offering insights for shoppers looking to navigate the commercial landscape with greater awareness and prudence.

Tactics to Watch Out For

Retailers employ a range of tactics to stimulate customer spending. Recognizing these tactics can empower consumers to make informed decisions and avoid unnecessary expenditures.

The Illusion of Scarcity

One prevalent tactic involves imploring a sense of scarcity to instigate hasty purchases. Online retailers frequently label items as "selling fast" or display the number of potential buyers currently viewing a product. This tactic is strategically designed to create a perceived urgency, compelling consumers to finalize their purchases swiftly.

Psychological Pricing

Sellers often utilize psychological pricing techniques, such as setting prices at $4.99 instead of $5.00, to make products appear more affordable than they are. Additionally, presenting higher-priced items without the comma (e.g., $1200 instead of $1,200) aims to manipulate shoppers' perceptions of value. Furthermore, breaking down the total cost into monthly installments can obscure the actual price, potentially leading to unintended overspending.