6 July, 2009

Sneaky Marketing Tricks: Don’t Let Restaurants Fool You

Between resisting impulse buys, keeping up on sales and comparison shopping, being a frugal consumer is hard enough.

But, because salespeople are always trying to make a profit, they have plenty of sneaky ways to get us to spend money – and we may not even realize we’re falling for them.

Here’s a primer on what to look out for so you can hang on to money you may not really need (or want!) to spend:

Restaurant Pricing Tricks

Eating out can be fun, but when you’re watching money, it can also be stressful. Consider these tactics restaurants use, from a report by the National Restaurant Association:

  • Pricier items in targeted menu spots: Restaurants know that the human eye is drawn to the middle of the inside right page. That’s why they place the more expensive items there.
  • Placement in a list of items: Studies have shown that we tend to best remember the first two and last items of a list – and savvy restaurants will put their higher-cost dishes in one of these menu spots.
  • Tempting pictures: On menus, pictures sell. It’s easy to be tempted by tantalizing images, but resist if they’re not what you really want.
  • No dollar signs: We’re less likely to think of money when prices are listed as a number unattached to the dollar sign, which could lead to spending more easily.

To counteract these tricks, take your time ordering.

Consider what you really want and, if price is a concern, don’t be tricked by the tempting tricks menus are so good at playing.

The Skewering of Price Perception

In a study by two business school professors at UC Berkley, researchers found that comparison shoppers are influenced by how many choices they have.

First, shoppers were given the choice between two microwaves, a low-priced one and a slightly higher-priced one. The shoppers split about 50-50 on their choice of microwave.

Then, the researchers added a third microwave to the mix – one with a much higher price. With the higher price available, 60 percent opted for the mid-range appliance.

Lesson: know how much you would like to spend on an item, and don’t by swayed by a perception that your price may be too low. A more expensive alternative doesn’t always mean you should pay more than you expected to.

Reciprocity

We all know the saying “I scratch your back, you scratch mine.”

And so do people trying to sell stuff to us.

At home-based sales parties (for Tupperware, jewelry, etc.), people often feel obligated to buy, since they’ve already been granted a favor of hospitality and snacks by the host.

Similarly, various charities have found that sending a “free gift” (like return address labels) along with a request for money nearly doubles their donation success rate.

Lesson: Don’t let anyone guilt you into spending money! There’s no reason you should be considering filing bankruptcy because of ridiculous restaurants.

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