Tuesday 3 July 2012

Sneaky Ways Websites Get You to Spend More

By Kate Ashford

By now, you probably know that brick-and-mortar stores manipulate you-from the displays to the music to the giant "SALE" signs. But online shopping feels more straightforward. After all, you're in control of the experience, right? Think again. "Marketers are constantly trying to influence us and get us to click on things," says Deborah Mitchell, a senior lecturer in marketing at the University of Wisconsin-Madison. "The environment is absolutely about persuasion." Here, experts share ten website ploys meant to lighten your wallet. Photo by Getty Images
 
1. There's a high-priced item in the mix of products.
 
If you're idly browsing, a product with a higher price can make a mid-priced option seem more appealing. You may not even notice the pricier piece because, if a site is smart, the cost difference will seem like a reasonable step up. So how does this tactic get you to spend more? "People don't want to buy the most expensive thing, but they don't want to buy the cheapest thing either," says Mitchell. "They believe that avoiding the extremes is safer." Although you may not notice this trick, try not to reject less expensive products simply because they don't cost as much. 

2. Items are displayed in a particular order.
 
"Consumers tend to buy things they see early in a list," says Vicki Morwitz, PhD, a research professor of marketing at the Stern School of Business at New York University in New York City. Retailers use this knowledge to their benefit. The first few items you see may net the company a bigger profit, or there may be excess inventory of those things. They may even be items the site has found you're more likely to buy based on your shopping history (more on that in #8). Take advantage of sites' sorting options when they exist, and order a page's inventory by the criteria that works for you-lowest price to highest price, for instance, or best rating to worst. 

3. Sites charge extra for shipping.
You may think that shipping fees are exactly equal to the cost of mailing your item. Not so. "Retailers make money from shipping and handling fees," says Morwitz. And it's tough to spot a bad deal, since some retailers have a legitimate reason for charging more-a warehouse that's farther from you geographically, for instance, or a not-so-hot contract with a shipping company. The best thing to do: Use Google Shopping to compare the total cost of an item, including shipping, between sites, because some may charge less to ship but more for the product, or vice versa. Also, search a site like RetailMeNot.com for coupons before you buy-you might be able to find a code for free or reduced shipping. 

4. Shipping costs pop up last.
 
If you've clicked through eight screens and entered your billing address, shipping address and credit card info before you see shipping costs, you're less likely to give up on the order, even if the shipping fees are higher than expected, says Lars Perner, PhD, an assistant professor of clinical marketing at the Marshall School of Business at the University of Southern California in Los Angeles. If shipping costs seem high, it's worth your time to check at least one more retailer for a comparison price before you hit "submit."
 

5. Your subscription is automatically renewed.
 
Have you ever signed up for a 30-day trial of something, only to forget about it and get charged the full subscription price? "Many people don't get around to canceling it," says Perner. And the retailer is counting on that. Same goes for subscriptions that automatically renew at the end of a cycle-and it's not just magazines and newspapers that do this. Websites that charge for access (such as eHarmony), membership programs (such as the one at Barnes & Noble) and software that expires after, say, 12 months all have auto-renewal options. If you sign up for one of these, put a reminder in your calendar to cancel before the renewal date. Where possible, un-check the option to auto-renew. But if you're charged for something you never meant to re-order, call the retailer. They may issue you a refund. 

6. The retailer emails you directly.
 
If you've ever purchased anything online, you've probably received the retailer's follow-up promotional emails. Every time one of those pops up in your inbox, it gets that store into your brain. "It's just a matter of time until one of those emails arrives when you have time to shop around," says Perner. Unsubscribe from mailing lists when you can, or at least have those emails filtered into a separate folder you can check when it is time to shop.
 

7. There's a limited-time offer on the deal.
 
There are only six units left! You can only get this deal today! "These spur people to act quickly," says Perner. When you feel that quantities are finite or that an offer is only good for a particular period of time, there's a sense of urgency to make a purchase. What if the site never offers free shipping again? What if this is the only time this item will be on sale? What if they sell out? If you were going to buy an item anyway, feel free to jump on the sale. But if you find yourself snagging one-day-only deals left and right, even though you have no interest in tango lessons or dinner at the upscale sushi restaurant in town, you may want to unsubscribe from the daily deals emails. 

8. Your shopping experience has been personalized.
 
Some sites greet you by name. Some suggest products you might like, based on past purchases. You may even get special offers. "It all fosters a closer relationship between the consumer and the retailer," explains Mitchell. For instance, fire up your Amazon account and the site has "recommendations" for you. While it feels convenient, it's simply one more way to persuade you to buy something else. "If a company customizes well, it can highlight things of interest to you that you might not have found on your own," says Morwitz. If you'd rather not be tempted to buy those suggested items, log out of your profile on the site and try shopping as a new customer. 

9. Sales are advertised on the home page.
 
"People tend to 'anchor' on the first price they see," says Mitchell. "So if a retailer puts something that's inexpensive up front, people think that whole website is a great deal." But that's not necessarily the case. In fact, it's common for sites to put a few things on sale and bump up prices on the rest of their inventory, notes Mitchell. Make sure you comparison shop elsewhere before settling on something. 

10. The site saves your credit card info.
 
How convenient! You don't have to re-type your credit card number, since it's saved in your profile from the last time you shopped. "It makes it that much easier for consumers to push the 'buy' button without a second thought," says Morwitz. If you feel like you're impulse-shopping because it's so simple to click "submit," consider checking out as a guest instead of creating a profile on a site, when you can. That way, your information won't be stored for your next online shopping excursion. But if your habit is in check, go ahead and use the stored billing info feature, suggests Morwitz-it'll save you time and the effort of digging out your credit card. 

Article originally appeared on WomansDay.com.

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