Why are we drawn to discount sales and promotions?
AS FESTIVE SEASON OFFERS ABOUND, WE SPEAK TO UAE PSYCHOLOGISTS AND OTHERS TO FIND OUT
We all love a bargain, says Dubai-based Angeline Chandrasekaran. As a clinical psychologist, her reasoning is revealing. “The perception of a discount can activate our reward system which signals in our brain that this event will lead to a favourable outcome,” she adds.
She explains: “After searching through countless online sites and reviews, I eventually went to a supermarket to purchase a washing machine because I am old school and want the feel of a product and, secondly, there was ‘a real bargain’ as it was going at half the price.”
The price was set for a certain period of time. “Therefore, it activated a fear response which led to impulsive buying,” adds the psychologist from Lighthouse Arabia.
In essence, multiple emotions are triggered that motivate our behavioural response to spending, overriding a rational response of buying something if and when needed, she points out.
When certain things are selling out, or are available for a limited time, they trigger the fear of missing out response in a customer. The idea behind this piece of customer psychology is clear — people don’t like to miss out on great things, be it a memorable experience or a generous sale.”
Fear of missing out
Dr Dhanesh Gopalan, another clinical psychologist from Abu Dhabi, agrees.
“When certain things are selling out, or are available for a limited time, they trigger the fear of missing out response. The idea behind this piece of customer psychology is clear — people don’t like to miss out on great things, be it a memorable experience or a generous sale,” says the NMC Royal Hospital specialist.
“The ‘buy one get one free’
promotion is a big attraction. “If a person arrives at a store expecting to spend an average of Dh70, he tends to spend an additional Dh40 due entirely to aggressive promotions,” says Dr Gopalan, who cites a study that found over 87 per cent of shoppers making impulse buys.
Paying less, buying more
Ironically, Dr Gopalan says we often end up buying more than we should, the sum total of which may actually add up to far more than the undiscounted product.
Chandrasekaran points to how discounts influence perception. “You feel you have more money to spend because you ‘saved’,” she says, adding that this spurs us to buy the next item, even if it’s more expensive than expected. “Our reasoning is tantalised by clever marketing,” she says.
As a discerning shopper, Gaia Cianci, a PR specialist, says she takes advantage of promotions only to buy what she genuinely needs. “I believe that minimising consumption is important, particularly from a sustainability perspective,” she says.
But even so, she admits a good bargain is satisfying, “especially when the discounts are 50-80 per cent off.”
“I believe the psychological aim of promotions is to make consumers feel smarter. I try to take advantage of the sales to buy everything I need so that I won’t have to buy the products at full price later. It connects to the idea of scarcity,” she adds.
Alyssa Mariano, co-founder and CEO of a social marketplace app, says, “When buying something at a cheaper price, it’s exhilarating. But, I still try to ask myself, “do I really need this?” If there is a bundle sale on household items, then I will take advantage of that. For example, buy two, get one free soap!”
She says, “Sales and promotions definitely attract people. But it’s always good to do your research and make sure the company has not just raised the prices and offered a ‘discount’ on those raised prices.”
Dr Dhanesh Gopalan | Clinical psychologist at NMC Royal Hospital
I believe the psychological aim of promotions and discounts is to make consumers feel smarter about their purchase. It happens all the time, whether it is a skincare product or a piece of clothing.”
Gaia Cianci | PR specialist