In the past, I’ve written several times about the insidious power of marketing. In 2007, I shared a guest post from Malcolm Gladwell on the same subject. My thesis is this: A lot of people like to believe they’re immune to advertising and marketing; a lot of people are wrong. In fact, I suspect (although I have no hard evidence) that those who are most adamant that marketing doesn’t affect them are probably the most susceptible to it.
But it’s not just advertising on television and in print that influence us. Increasingly, stores and companies are using the science of persuasion to exert influence over shoppers. Last week, USA Today published an interesting piece about how retailers study and test us to maximize profit.
Shoppers are like laboratory rats these days. From the time shoppers walk into stores, their footsteps, eye movements, choices and reactions to discounts are often closely monitored. With this analysis, stores can determine with startling accuracy whether changes such as remodeled stores, specific deals and more salespeople will make people spend more.
[...]
Analysis of shoppers ranges from mundane methods, such as counting the number of teens who walk in after school, to the high-tech, such as digital signs with cameras that can detect where people’s eyes move and direct promotions to that part of the screen. By calculating who is shopping when and which demographic groups are buying, stores can target them with the promotions that are more likely to resonate.
While many people (and I’m one of them) might resent being subtly manipulated to buy more, retailers are convinced that their methods actually help consumers. How? By steering them to buy the things that they really want. I’d rather discover that on my own, though, instead of being manipulated into a purchase.
All of this reminds me of the book Why We Buy: The Science of Shopping by Paco Underhill [my review]. The book explains why supermarkets block the aisles with big displays, and gives tips on how the average shopper can spend less. (Quick tips: Don’t use a cart or a basket, don’t touch things, make a list and stick to it.)
As for me, there are two things that I’ve found have most reduced how much I spend on shopping. First, I do my best to avoid advertising. Second, I stay out of stores. (And that includes on-line stores like Amazon.) I know myself. And I know that the best way to keep from spending is to avoid temptation in the first place. Besides, if I stay out of the stores, the marketers have less of a chance to exercise their powers of persuasion over me!
[USA Today: How retailers study and test us to maximize profit]
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This is really fascinating, and I’ll have to pick up Why We Buy.
I also try to avoid advertising, but it’s difficult. I don’t have TV – so no commercials – and when I shop, I am armed with a list that I stick to.
However, it’s hard to resist temptation when you see your neighbor carrying a particular brand of purse or a snazzy new laptop. It’s hard when I go on Facebook and see friends posting about a cool new toy they just bought. I think commercials, flyers, etc., are effective, but pale in comparison to peer pressure and word-of-mouth.
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You try to avoid advertising, and yet your blog is basically one large ad for Trader Joe’s!
I’m not complaining. I like TJ’s. I even like their advertising. I just find this particular circumstance hilarious.
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My friends aren’t stuff-buyers, so the most effective and insidious form of advertising for me is blogs.
I have read more books recommended here, if i were a book buyer instead of a library user, I’d be broke.
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I have never received money (or gift cards, or a free bag of chips, or any sort of compensation) from Trader Joe’s for my blog. As far as I know, TJ’s isn’t even aware of my blog.
I just happen to like TJ’s products – I’ve shopped there for years – and like to recommend things to people. The blog is a hobby for me.
If you have further questions, you can contact me at ILoveTraderJoes5ATgmailDOTcom
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I never assumed that you did receive any kind of payment.
However, your blog is still an advertisement for TJ’s. It’s just like driving a car with the dealer’s nameplate/ logo attached. You’re providing free publicity for a corporation.
I have NO problem with this — I just can’t believe you think TJ’s isn’t aware of your blog. Well-run companies (and they are very clever and very well-run) are always aware of what is being said about them on-line. Try putting up an extremely negative campaign against one of their products and I’d bet a representative of Trader Joe’s would be in touch.
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I’m married to someone involved in security and privacy research, so it’s been fun watching the uproar in that sector after the original New York Times excerpt was published about Target’s tracking mechanisms.
From a purely data obsession point-of-view, it’s interesting how 1+1=3 when it comes to data. This is what makes it so hard to convince people they should care about privacy.
Most people may not care that a company knows data point A, nor point B, but when they can combine them and infer point C about you, it gets a little scary.
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Ha, like Target can predict when a woman is pregnant before she’s told anyone or sometimes before she even knows herself? Creepy but interesting (I’m a scientist, so I can’t help but find it interesting.)
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What? Surely it is consumers manipulating retailers. Apparently, they have to keep stores open when consumers want to shop. Not a life I would opt to lead.
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Thanks for the afternoon articles. I have always loved these surprises!
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Honestly, from what I read here, I can’t conclude that retailers are manipulating shoppers. All that the excerpt says is that retailers study shopper’s habits and behaviors so they can sell what people want the most.
To compete and survive, every business needs to make it a first duty to study the customers they serve. I don’t see the scandal in this.
Think of it: If that teenager doesn’t buy a new t-shirt while trolling past my department store, she’ll pick one up at Hot Topic, or will order from an online retailer while sitting at the nearby Starbucks. People are at the mall already, the money is going to get spent somewhere, the question is, will it be in your establishment or will it be in your competitor’s.
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You really think so?
Teenagers are impulsive. Does the teenager need a shirt? Probably not. If she doesn’t buy that shirt she’s going to put the money into dinner, gasoline, savings, or some other random impulse purchase that’s not a shirt at all.
If we all had about the amount of stuff we used regularly, and replaced clothes as they wore out, this would be a different conversation. But it’s nearly universal for Americans to have more than they need and less money than they should – so what’s making us buy more stuff? Advertising, mostly.
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Can you really blame your weakness on business promotion? If some one is susceptible to advertising, it’s his/her weakness.
Like everything in life, be strong and willful. No body can harm you, no body can take your money away easily.
Charity begins at home, if your will is strong, no amount of advertisement can entice you to buy things.
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Advertisers have changed our whole culture, to the point where not being in debt is seen as weird.
Everyone has weaknesses. Would you serve alcohol to someone in recovery? Why not? It’s their weakness to manage, right?
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Rosa, if someone is in recovery, it is up to him/ her to refuse the drink being offered. It is not my responsibility to assume that people are alcoholics and therefore keep liquor away from them preemptively.
Merchandisers don’t bear the responsibility of monitoring the credit habits of every potential customer. If you’ve overspent, look in the mirror for the culprit.
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Allow me to introduce Homo sapiens sapiens… Talk about ‘will’ and ‘strength’ is utter crap. It’s a tool people use to feel superior. It’s not actually good for anything else. Yeah people ‘should’ avoid temptation etc etc. People also ‘should’ be nice and look out for each other. They don’t, they aren’t, they won’t. That’s life.
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I love how you all feel like I must be overspent because I can see the influence advertisers have on our culture. The most credit card debt I ever carried was $400, I’m surrounded by a nice countercultural bubble where most people don’t even have cars, and I still see the effects of advertising and consumerism in my life.
Whenever people get smart about advertising and start to resist, producers and advertisers evolve new methods. A lot of the practical psychology research being done today is funded by people who want to sell stuff. If you have to have a strategy and practice willpower to avoid the effects, then they’re trying to manipulate you. Pretending it’s not there just leaves you vulnerable.
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@Rosa,
I totally agree with your statement that in our society people think you are weird if you are not in debt. I do not have a credit card because I would use it. People I work with think that is so strange. They ask me, what happens if you have an emergency….I say, I would use money from my emergency account or do without. Then they say, I couldn’t afford a large savings account. I make less than they all do and most of them have two incomes.
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How can you gauge just how much you’re manipulated by advertising/retailers? Is there a quiz I could take or something? I not one of those who say I’m not affected at all, but I consider myself more impervious than than the average person. I’d think that if I weren’t, it’d surely be reflected in my finances.
I also would like to know if there’s some way to learn how use marketing techniques to improve one’s life. For example, getting a job or even a promotion. Let’s find ways to use marketing research for good and not for evil.
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Yes, think of yourself as a brand. How would you differentiate yourself from other job applicants? Packaging? Equals how you dress. The commonalities go on.
Search terms like “A brand called you”, Fast Company, and Tom Peters for hints. I am a professor of marketing and teach these concepts all the time.
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I too hate the manipulation.
It was one of the reasons I recently said goodbye to Costco.
http://dogsordollars.com/2012/02/07/goodbye-costco/
As their manipulation tactics had somehow become more baldfaced, probably because I am not in other stores all that much. I’ve become less oblivious to it all.
Interesting to think about eye movement and being on camera analysis. Interesting and creepy.
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I read your article and I can’t agree with you– their only “questionable” behavior, on the surface, is the purported “buying” of an election– that’s until you realize it was an election to break the state’s alcohol monopoly, which is an anti-business scheme and does not serve consumers or the economy well.
Basically, the state was using political force to keep a competitor out of the business of selling alcohol, and Costco went against that. Why does the government have to be in charge of scotch and tequila? And why shouldn’t a business have a legitimate claim against a monopoly? I congratulate Costco on their victory.
I’d rather buy booze at Costco and Trader Joe’s and whoever can offer best prices and service, than at some stupid state store– I used to live in Virginia and Maryland, and the state stores are the worst! Let the free market do what it does best which is to serve the customer. I can get rum at $7 per bottle and wine at $2.50-and-up at my local Trader Joe’s– I dare any state monopoly to match those prices!
Your other two arguments: “unpleasantness” is not a crime and you can shop elsewhere if you don’t like the lines (or do what i do and avoid peak shopping hours); “mind games” is a bit fallacious, moving products around is not a Costco exclusive– my local hippie food co-op did just that, for example. Getting a fresh look at the inventory and learning about new products is good for everyone: new products arrive and old ones get discontinued all the time, consumer habits change, even seasonally, so things need to shift around to stay current. And on the whole “happiness” bit– speak for yourself only, I love Costco!
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Thanks for the debate El Nerdo! Love it!
Not arguing the politics of the state liquor monopoly, and whether it should or should not have been torn apart. Although, just the previous year there were other measure on the ballot (albeit more confusing in their wording) to do the same thing, and they failed.
Its the ginormous contribution to get what they want.
Unpleasantness is in fact not a crime, and I do choose to shop elsewhere. Completely and exactly the point.
And I can only speak for myself and my local Costco. The one in our old area, was a much more pleasant shopping experience, I’ll admit.
I don’t believe Costco is just trying to show me new products when they rearrange the entire store on a regular basis. That seems an awful labor intensive way to go about that. Costco takes it to the extreme in my opinion. Again, my opinion, my store, my choices on where to shop, and who to give my money too. My choice not to participate in their manipulations. Good deal or no.
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Thanks, I love a debate too– And you’re right, where you shop is your choice absolutely, I’m not challenging your decision to shop wherever you want… I just think that the accusations you make are a bit unfounded. For example, I don’t see the “manipulation” or feel manipulated in any way or form– whenever Costco rearranges the store I simply note it in my mind, I take no personal offense or feel led by the nose, and I still buy just what I’m there to buy. Sure, everyone’s sensitivities are different, so I think that feeling offended or manipulated here is a matter of taste, and not fact, which I feel begs for a less categorical condemnation than the one you make, is all.
The amount of their donation to the ballot campaign was less than the profit they expect to make over the years, of course, so it’s only rational they put so much into it. Hey, if I was a resident of your state I’d have given money too, just based on the expected savings– because the amount shoppers will be able to save over time will be staggering, much more than Costco’s profit margins! Not only that, but being able to get drinks at the grocery store instead of driving to the state store… talk about not drinking and driving. But I digress…
So yeah, business and money and politics is a different story, to discuss perhaps at another more convenient time, but unless Costco is bribing officials or committing fraud or breaking the law in some other form, I find no fault with their behavior, and neither would a court of law. But again, you’re free to find the whole scene distasteful and shop elsewhere– and that’s what’s awesome about not having state monopolies! You can always take your business elsewhere! Aren’t you happy with the election results?
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Do they really move things around any more than any other store? I’ve been a member for two years now, and I don’t think they’ve moved very much at all. Perhaps you mean the seasonal things? I find warehouse stores really easy to find things in.
I fully admit that our dual memberships to both Sams and Costco do not ultimately save us that much money. We are members at Sams because it is very close to our house, and we buy about three gallons of milk a week there. We are members at Costco, because it is close to my parents house where I get (drumroll) free child care. That alone is worth it to me to walk around in a huge store by myself and browse their items. Plus their gas is super cheap compared to anything else I’ve seen. And the hot dog up front – that’s always fun. Oh, and the $2 a pound cheese.
Ultimately I’m a member at Costco because I enjoy it. If you don’t like it, you don’t have to create these dubious political and ethical reasons why you aren’t a member anymore. You can just choose to shop elsewhere.
As an aside, what’s up with the shape of Costco’s plastic milk containers? Worse design I’ve ever encountered.
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re Jane: it might just be his particular costco he’s breaking up with; sometimes the individual store’s interpretation of policy tarnish the whole business for a person.
I love UPS. Whenever I’ve lived elsewhere, or for use at work, I love UPS. But I have used FedEx exclusively for about 5 years, not because of anything FedEX advertises, but of a local UPS falling short of it’s own marketing.
I have boycotted UPS. Why? Because the particular delivery route my home is in is badly mismanaged and I’ve never had any complaint (nice & professional early on) resolved to my satisfaction (even a tiny bit)by the local dispatch warehouse.
Lost packages, mis-delivered signed for/packages, refusal to deliver package or insistence that I indeed did refuse delivery when they never arrived at my house–once I had customer service on the phone waiting for the third attempt when a call on another line informed her that I just refused delivery. Presented with proof (or trying to send me a UPS package), friends, acquaintances, family agree with me that my UPS problems are bizarrely epic.
Right now Brown isn’t allowed to do squat for me and neither is any website/store offering exclusive UPS shipping…and it’s all because of a local route.
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I’m debating throwing in the towel at Costco, too. Why?
1. Parking sucks and stores are crowded. Yes, I shop on Saturday.
2. I can’t find anything.
3. I actually impulse shop, which is something I don’t do anywhere else. I don’t buy things we don’t “need” but when I do walk by something not on my list, I think “oh, we’re close to running out, and since we’re at costco, it has to be a good deal…”
4. I spend way too much. See (3).
5. Some (lots?) of the produce goes bad before my wife and I can use it.
6. I’m not entirely sure how great their prices are. I can get cheap off-brand stuff at the grocery store, and Amazon is quite competitive on many things.
7. You’re making me pay $50/year for all of that? On the few things where Costco is a savings, I’m not convinced I’ve saved my membership fee.
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ha ha okay, i’ll pick up the gauntlet– i am suddenly working for costco here. very well.
1. Parking sucks and stores are crowded. Yes, I shop on Saturday.
hey, stores are crowded, means a lot of people want to shop there, must be good, high demand for what they supply.
2. I can’t find anything.
but why?? they dont’ have such a huge selection. for me it’s easy to find everything.
3. I actually impulse shop, which is something I don’t do anywhere else. I don’t buy things we don’t “need” but when I do walk by something not on my list, I think “oh, we’re close to running out, and since we’re at costco, it has to be a good deal…”
bring a notepad, good sir, along with your shopping list. write down the deal (or photograph it with you phone if you can) and analyze the purchase for the next shopping trip. can’t blame impulse shopping on others! that’s the twinky defense!
4. I spend way too much. See (3).
spending is how demand meets supply. see (1)
5. Some (lots?) of the produce goes bad before my wife and I can use it.
but why??? plan your menu! buy frozen! we just got a bag of fresh cara-cara oranges and eat them multiple times daily–we’re cara-cara fiends. the frozen peaches on the other hand stay frozen and feed the occasional smoothie… the frozen organic green beans get steamed on demand. different goods for different uses!
6. I’m not entirely sure how great their prices are. I can get cheap off-brand stuff at the grocery store, and Amazon is quite competitive on many things.
true if needing small amounts. otherwise, here’s an example: in my local costco silk almond milk is $2.50 per box but you need to buy three boxes, wal-rats sells each box at $3, smiths at $3.50, and the hippie store carries a less tasty brand for $4 (these are actual prices, not hypothetical, cuz i buy this stuff). and with Amazon, i can’t imagine the cost of shipping refrigerated goods, even if they do. so if you plan to drink almond milk daily like i do, costco is the way to go!
7. You’re making me pay $50/year for all of that? On the few things where Costco is a savings, I’m not convinced I’ve saved my membership fee.
i get the “executive” membership that kicks back 2% and the thing pays for itself, and that’s besides their lower prices.
ha ha, okay, i’m done defending costco’s “honor”– good night!
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Just in case you can’t resist:
1. I’m willing to pay slightly more for a more pleasant experience. Your job as a store is to make me want to shop with you. It’s not my job as a consumer to tell you why I shouldn’t. Costco does not create a welcoming environment.
2. Ok, I don’t know what a particular store carries. My local store doesn’t label their shelves, so I have no idea what’s down a particular aisle unless I go look.
3. TBH, there’s so very little that I *must* get at Costco. If I make a Costco list, there’s probably three things on it. If I don’t get them at Costco, it won’t break my heart.
4. I don’t get your point.
5. I like fresh stuff. I don’t have a big freezer. I live in an apartment, so it’s not like I can just stick a big freezer in my garage or basement.
6. That might work for you, but there’s nothing that Costco has that’s on my *must* list. There’s nothing that they have that I would “die” without.
7. Holy Jesus. At $110/year, I’d have to spend $5500/year to get the membership to pay for itself. My entire grocery budget is about $6k annually, so that’s a non-starter for me. But, unless Costco’s prices are actually lower on the things you buy, the joke is on you.
I crunch the numbers pretty hard, and for my family size (2), life style (cook a lot, live in a suburban apartment), and shopping needs, Costco just doesn’t rank on my “OMG what would I do without it” list.
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ha ha yes ok i couldn’t resist
1. I’m willing to pay slightly more for a more pleasant experience.
well yeah, costco is a wholesale warehouse! if i had more money i’d shop at whole foods, my local co-op, and farmer’s markets almost exclusively, but alas, i gotta watch every penny, and pleasure can take a back seat.
2. Ok, I don’t know what a particular store carries.
i buy always the same things so it’s pretty much a no-brainer for me, takes me 15 minutes to get my shopping for the week (i’ve timed it).
3. TBH, there’s so very little that I *must* get at Costco.
ha ha, then don’t shop there! it isnt’ worth the trip for 3 things.
4. I don’t get your point.
i mean that if you paid for it you must have wanted it. you demand, they supply. don’t buy things if you don’t want them!
5. I like fresh stuff. I don’t have a big freezer. I live in an apartment, so it’s not like I can just stick a big freezer in my garage or basement.
i live in a 1br apartment with a medium-sized fridge and no garage. i love fresh stuff too but it costs more. frozen vegs are cheaper and are never wasted. same with the meat. frozen burgers, frozen shrimp, frozen berries, etc.
6. That might work for you, but there’s nothing that Costco has that’s on my *must* list. There’s nothing that they have that I would “die” without.
i buy 90% of my groceries there! it’s a good value. if i had more money i’d drive 60 miles to the santa fe farmer’s market and pick up the fresh bison and local produce and all the glorious stuff on saturday mornings, but i’m not there yet financially.
7. Holy Jesus. At $110/year, I’d have to spend $5500/year to get the membership to pay for itself. My entire grocery budget is about $6k annually, so that’s a non-starter for me. But, unless Costco’s prices are actually lower on the things you buy, the joke is on you.
i’ve price-compared with cheaper places like wal-rats, and costco comes ahead by far, 20 or 30% cheaper. things like walnuts are like 50% cheaper are costco. home supplies like water filters, toothbrushes, baking soda (we use it for laundry)– cheaper. i also buy business supplies, printing, and other services there, so i get a lot of mileage out of this thing. there are also occasions where for work i have to feed a crew and again costco comes handy– in fact the membership is purchased by my business.
I crunch the numbers pretty hard, and for my family size (2), life style (cook a lot, live in a suburban apartment), and shopping needs, Costco just doesn’t rank on my “OMG what would I do without it” list.
we’re also 2, i cook 3 meals a day, live in a city apartment, and while i could certainly buy things elsewhere costco offers me the best value in most things (except for booze– Trader Joe’s takes the crown there). the thing is that during the workweek we have a pretty repetitive menu, and we feast only on saturday. of course not everyone will want to eat this way.
now we have a friend coming over in 10 minutes, so i”m forced to quit!
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Can not beat the $1.50 hotdog and drink or their price for eye glasses.
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Plus, every Costco is different. The one close to me is rather small with not great assortment. The one 30 minutes drive is pretty big with very good assortment. Same goes with the produce that they carry. I do NOT buy produce from Costco. I don’t save anything compared to ShopRite next door so why would I buy 3 cantaloupes when I can buy one for the same price? This is my first year with Costco with $110 membership, next year it will be $50 membership and back to couponing. I hate coupon clipping so thought Costco would be a good option but no, I was wrong.
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Noel – If you come up short on your 1% back (i.e., don’t get enough back to pay for the extra cost of an executive membership) take the refund check to the customer service desk. They will refund you the extra money! Who could ask for fairer than that?
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Have you seen this recent NYTimes article? It’s kind of scary: http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?pagewanted=all
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Ohh, thanks for linking this! And JD, thanks for this posting, I love this theme (mostly because I like to re-form my habits and the science behind is fascinating, less because I want to influence any buyers
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Ris, did you notice that NYT article is by the author cited in the USA Today article?
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Wow! Hard to believe how much they study these things. As long as we don’t let these little influences control us, we should be able to resist our urges to spend on things we know we shouldn’t buy.
Thanks for the afternoon post JD!
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No, but was your snarky response to me necessary? I never comment and usually don’t even click through from my reader, and this reminds me why.
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glad you re-posted it in another format…i’m a news snob and USA Today is not a part of my routine, so the excerpt in the article was enough for me…the USA Today shout out, not enough to click and read…
but since you isolated the cited NYT article…well, snob that I am, it’s now the next tab in the window to be read
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I am always watching for marketing schemes that I see when I shop mostly as research for my own job.
I work on the marketing side of retail and we are (obviously) always brainstorming ways to get people to buy from us. I do find it fascinating even what works on myself. Sometimes I am 100% aware that something is a marketing scheme but I give in to it anyways because it’s either really clever or mutually beneficial (I blogged about how ING gave us $275 to become customers of theirs. Great marketing- they won! And I’m a happy customer!). I do find some tricks like shopping without a basket or cart are really helpful when I go into a grocery store.
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Unfortunately I’ve had too many personal and professional relationships with the advertising industry.
If I thought the end goal was actually a happy customer, I’d be more tolerant of marketing practices (and in smaller private business it can be). However, witnessing the reality of how most people in the industry actually think of the consumer as a schmuck and the market place as some sort of giant Pavlov experiment, leaves a very bad taste in my mouth. “All we want is a happy customer” is actually a marketing myth in and of itself. No, it wants profits, which is why customer service sees the first cuts and marketing expands, when any business stalls–however those two services are defined in a particular business.
I find I am generally opposed to cultural influences that exclusively identify individuals as one in a series of “common” denominators.
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Good article! Of course we are manipulated by retailers and in our household both my husband and I make it a priority to stay out of the stores unless we need something. And yes, I shop with a list and stick to buying what is on it.
These are the practices which our ancestors used to save $, time and fuel. For many from previous generations, it simply wasn’t practical to run into town a lot since it was a long drive.
It is OK and expected that marketers will do their job. It is up to us to engage our brains to exercise self-control in how we spend our money. Ultimately, we are responsible for our lives.
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Yes, only you can allow yourself to be a vicitim. (Not sure of the source but I stole it from somehwere.)
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Dee;
You’re right!
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Ancestors…great point!
My Dad grew up about 7 miles outside a big town/small city. His parents’ generation, they would wait until 3 or 4 kids had graduated 8th grade from the local 1-room schoolhouse and then all of them would board in town to attend high school.
My Dad’s generation, he still attended the 1-room schoolhouse but they rode a bus into high school daily.
When I was a kid, my aunt made a once-a-week trip into town to shop (in the summer, the kids went too and visited the town pool). My cousins rode the bus into town for school starting in kindergarten.
Now, my adult cousins think nothing of going into town many times a week.
Progress? Well, it is certainly change!
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I’m glad you shared your story because many younger people don’t know how those before them lived. A friend told me about her upbringing on a ranch in eastern MT and they went to town only once a month. Even though their trips were infrequent, they shopped with a long list and went to the movies and the local drugstore for ice cream. She said this was one of the best memories of her childhood.
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My preferred way of shopping is with cash and using no reward cards. When I do this, I always whisper to myself, “I’m invisible.”
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for years and years, ever since I worked retail myself, I’ve given my hometown ZIP code whenever asked at a store.
If my hometown ever gets a Children’s Place, it will be because of me.
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and yeah, for those that don’t know…if a store advertises significantly lower prices for a loyalty card, there is small print that is not advertised. Legally, a store cannot hold sales prices hostage for information so if you want that 2.09 item for 10/$10 “with rewards card”, all you have to do is request a “guest” swipe at the register.
The cashier’s aren’t doing it so they get the balance on their card–although some stores allow them to. The option is legally required. But you have to ask for it and they count on some people being too embarrassed (just get your own card, geez) or to not know the option is available–they are NOT required to advertise that fact.
It is also why they run rewards on monthly tallies (spend $300 in June get $10 back). All part of the marketing strategy of making “opt out of the herd” more difficult.
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Afterthought: also why some stores like CVS, Riteaid, etc. use “extrabucks” instead of a rewardscard/price reduction in their sales. It is an “opt in” ploy.
Legally speaking, they are “paying” you for your information, two and three “dollars” at a time therefore is also why in their circulars those playing the ‘drugstore’ game are encouraged to think of an item as:
“pay $9.00, get $3.00 extra bucks, and it’s like getting it for $6.00!”
yeah, you can make it work for you but it is a legal way to hold information hostage for lower prices.
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Bareheadedwoman, could you tell me where you found that information? I would like to have something to back me up in the store.
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I wish i could point you to a specific but this is information gleaned in the legal departments (i am NOT a lawyer) of a past life. The practice is governed by FTC regulation of “clear and conspicuous” and “sweepstakes” advertising law. The extra savings gained through the trade of information via “savings cards” is considered a sweepstakes. A lottery is defined by having to “pay to enter.”
Also, consumers “regardless of whether they make a purchase, should have equal access and opportunity” or the sales prices could be construed as a “lottery” and therefore could be in violation of the FTC Rules for Games of Chance. The availability of, if unadvertised, option of a “guest card” is the work around. If you don’t ask for the loophole, the store can legally charge you full price although the lower price is advertised as a sale (small print “with rewards card”).
Here’s a free legal directory with a good, well organized synopsis, easy to get around in so you won’t get bogged down and the link will take you directly to advertising law:
http://www.hg.org/advert.html
Start with the FTC guidelines.
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I hate the word “consumer.” it reduces us all to living breathing versions of Pac-Man and Ms. Pac-Man, mindlessly gobbling down everything in our path as we travel in an endless futile loop.
It is up to each citizen ( a far better word) to take responsibility for the choices he or she makes. We do have the power to say “no.”.
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I worked in retail for years, and I don’t think that it’s about manipulation at all. I think it’s about the business of making money. They do that by studying customers, as you say, but I don’t think there’s anything wrong with that. How else are they supposed to stay in business? Yes, we salespeople try to persuade consumers to buy more stuff, because again, that’s our job. And if you weren’t interested in buying something, you wouldn’t have walked in the store in the first place. I think it’s more about helping people find what they need/want, and pointing them towards good sales/bargains so that they can buy more stuff while saving money at the same time. I don’t like being portrayed as a manipulator when I wasn’t doing anything deceitful in the first place.
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It is more a case of the left hand not knowing what the right hand is doing.
A salesperson with your attitude is invaluable. I hope you are doing well and you continue to do so. But eventually, a lot of good-hearted salesmen run up against the idea that sales can be boiled down to overcoming objection, any and all (even reasonable) objection. Credit itself started out as a sales technique for overcoming objection (that of: can’t afford it right now).
Ever see Glengarry Glen Ross? I’ve seen that movie replayed in too many board rooms and Armani suits over 20 years than I can count.
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And if you weren’t interested in buying something, you wouldn’t have walked in the store in the first place
I love this – that’s why if you don’t want to be manipulated – don’t just ‘go shopping’
If you’re really not interested in buying – go do something else – anything else. Don’t waste the saleperson’s time and energy or yours.
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And yet, stores do a lot to try to lure you in whether you’re interested in buying that day or not – bookstores with coffeeshops, places that offer classes or seminars, lots of places with “come see it in person!” talk. I worked in a retail store that pushed pre-Christmas sales with “get it now while it’s on sale, you can always return it if you change your mind!”. Malls deliberately try to be social gathering spots, as a customer-delivery service to their tenants.
Because they know, once you’re there, they get a chance to turn you from whatever your purpose was to their purpose, of you buying something.
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And why again is this horrible, or even unexpected?
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Bella;
What you say makes perfect sense. You can’t be manipulated by anyone if you don’t participate in their game.
If you are in the stores, you intend to shop which leads to buying. Recreational shopping has a cost!
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Glad to see you back JD. I don’t know how it happens, but each time I go to the store I spend exactly 75 dollars.
My wife now plans grocery shopping by first planning the meals for the entire week, checking the cupboards to see what we need, then building a list that way.
Has saved us hundreds each month.
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Irony: using an affiliate link to market a book about why marketing is evil.
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lollercoaster & thumbs up!
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I’m well aware of the irony, believe me.
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irony makes the world go ’round
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Those big displays in the aisles in grocery stores make me mad – whenever I run into one (not literally) and have to maneuver my cart around it, I never look at or consider the stuff they are trying to peddle in this manner. While you assert it has a manipulative effect, I find it to be the complete opposite.
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Marketing affects me. I *want* marketing to affect me. In fact, I believe those retailers who tell me that marketers are just helping me buy whatever it is that I already need/want. I *don’t* think it’s manipulation.
I first realized that I was susceptible to marketing several years ago, when I would read Money magazine. I would actually read the ads! I was *interested* in the sponsor’s product.
I might not buy it on the spot, but it creates brand awareness. In 2012, if I’ve never heard of it, it means I’ve never seen a review for it online either. If I know *nothing* about your product or brand, I’m highly unlikely to buy it.
In a grocery store, I need the clerk to tell me where something is. If they’re not there, and I can’t find it, I can’t buy it.
I like to travel, but I hate coach. The rage these days is similar offerings to United’s economy plus. I *need* airlines to tell me when they’ve added that option, so that I know I can consider them for future needs. (If they don’t, I don’t care how cheap that ticket is when I can’t stand 31″ of pitch on a flight to Europe.) Yes, it’s an upsell, but I *want* to buy it.
My wife and I like to have a few drinks on our travels. If we’re cruising, an ad for an all inclusive ship might not make me reject your product outright if I think it’s too expensive.
Some of the more slick advertising I’ve seen these days: As I mentioned, I like to travel. I’ll look at all kinds of hotels on tripadvisor in just a handful of destinations. Imagine my surprise when I go to other websites and I see ads for particular properties that I saw on tripadvisor or more general cities/countries. The random “save 30% on trips to Sydney” isn’t going to make me look at trips to Sydney if I have no interest in going. But, when I’ve already looked at France, “save 30% on your Paris hotel” is going to make me click that ad. It won’t manipulate me into buying something that I think is a poor price, but it will get my click and serious consideration.
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The thing about marketing is that once you’re aware of it you notice it and it has less of an effect.
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I love it! Staying away from stores and from advertisers! We watch everything on DVR in my house and not being bombarded by TV ads is huge! We go to the grocery store with a list to avoid the “end cap” pitfall. In fact, when we do any shopping, we go with a goal. Thanks for the post!
Brendan
themoneybeast.blogspot.com
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its important to be a smart consumer and do your research. don’t be an impulse buyer. have a budget. have a goal and intended purpose in mind. this will make you less susceptible to advertising and marketing manipulation.
once you’ve decided on what it is that you are going to purchase, do more research to find the best place to purchase it for the lowest price, with the best return policies, free shipping, etc… just learn how to be a smart(er) consumer, exercise personal control, buy 90% on needs and 10% on wants (and no that’s not scientific – just a strategic approach to being a more satisfied consumer that gets wants in addition to the base “need”).
heck, i want a new german performance vehicle, a new smartphone, some new MMA t-shirts, and a 20 year old bottle of scotch… but i’m going to just fix my gas guzzling jeep, root my phone with a new rom, buy a $5 “i support the right to arm bears” t-shirt at Walmart, and go for the 9 year Rye Knob Creek is releasing at $35 bucks instead of financing a $200 bottle of overpriced singlemalt. none of this makes me any smarter – but i’ve thought about my choices before making decisions. this alone prevents me from making completely stupid and irresponsible financial mistakes. it may not prevent all of them, but for those options above, i have a plan.
love some of the comments here. good topic.
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Marketers don’t control us. They influence us. If we don’t understand that we can be influenced, we get controlled. We don’t have to be controlled.
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But if 70% of the populous is easily controlled, and controlled…what do you think is going to happen to the 30% of us who are not?
If a corporation selling widgets would be content at controlling 50% of market…then I wouldn’t look cross-eyed at those attempting, in any way possible, to control as much as the rest of us as much as possible.
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Marketing is becoming more and more data-driven. It’s just the way it is, as marketers keep getting more and more information on customers and will use it to segment markets, target customers, position products, and so on. Things will keep moving that direction, might as well get used to it and try to use it to our advantage!
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funny, they told both the women’s movement and the civil right’s movement, the same thing.
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Everyone wants your money and they’ll do anything to get it.
i personally don’t blame the marketing tricks for spending too much.. i blame myself for lack of willpower not to.
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If your cat ate your parrot, would you blame the cat?
What if it was you that allowed the parrot to fly round in the house WITH the cat?
and no youtube videos of cat/parrot relationships please
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i’d blame the parrot for not flying away from the danger.
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Your advice of staying away from the stores isn’t going down well with me. We all ‘need’ things and we all want them at good prices. How would you know which things are good unless you do a survey. If you can’t control, impulse buying then of course you should.
The way, I work it out is, I have a board on the fridge, where I make a list of my needs. Current need is good knife set. I spend my free time on Amazon researching. Whichever products I like, I setup a deal alert using camelcamelcamel.com Then I make trips to the local stores for their prices and I am usually ready to pay $10 over Amazon price locally.
This works for me, may not work for someone else. I do have to point out that I hardly do any impulse shopping.
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I don’t know, I’ve never been swayed by commercials to buy something. Most of the stuff on commercials are crap for kids, ASOTV, chain restaurants, cars I can’t afford or have no desire for??? The only useful commercials are local ones about services I may need anyway in the future.
Honestly I already know what I want. I have a years long waiting list of things I want but can’t afford yet. There isn’t much room for anything else. Who are these people getting swayed by 2 for 1 at TGIF’s, and rhinestone jackets? I can’t imagine anyone at GRS.
Now catalogs, ummmm I plead the fifth!
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Commercials (and subtler product placements/celebrity use) work directly on some people, and then diffusely through them on the rest of us. So if there are one or two susceptible people in your social circle, and they buy brand name liquor and serve it at a party, people in your social circle are likely to try it and buy it. If enough of them like it that it becomes standard in your group, you’ll end up buying it even if you don’t drink it, in order to serve it to them.
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This rings true for me! I have friends that shop for recreation but I find shopping boring and a chore. However, as soon as I do need to purchase something, I will usually gravitate towards items my friends have mentioned or are wearing such as Frye boots (they really are extremely comfortable!), ModCloth (adorable clothes!), Betabrand (great USA made clothes for my husband!). I guess I want to be different, just like all my friends.
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So what? That’s how everything works.
The reason you’re not wearing bear pelts or burlap or a hoop skirt is that someone, somewhere, decided not to and their friends picked up on the idea.
It’s how human societies work, and companies are just tying into that.
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It’s a counterargument to “advertising doens’t matter, it doesn’t affect me!”. It effects all of us, no matter how smart and resistant we think we are.
More than that, for this blog’s audience: I want to hang on to my money. What I do spend, I want to spend on quality, not whim. What I save, I want to invest wisely.
Advertising attempts to derail all of that, moving MY dollars into investments that mostly make money for other people, and purchases that cause more profit for retailers than happiness for me.
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Two more good books on pricing/economics/psychology:
Predictably Irrational, Dan Ariely
Priceless, William Poundstone
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When I read J.D.’s comment, “Second, I stay out of stores. (And that includes on-line stores like Amazon)”, I identified with it. However, the way I would phrase it is as in the Dos Equis commercials, “I may not visit stores very often, but when I do, I do most of my shopping at Amazon. I am the most interesting man in the world”.
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I found studying language, rhetoric and marketing helps me deconstruct a lot of what I see.
However, I’ve noticed a lot of people who think they’re immune to ads aren’t immune to the lifestyle that ads collectively promote. Where did you get the idea your teeth had to be perfectly white, your home has to smell like flowers or you needed a diamond engagement ring? Some industries — like cleaning products and diamonds — were built on advertising. Advertising created a need for the product, not fulfilled a need.
(As an aside, Edward Jay Epstein’s The Diamond Invention is an interesting read in you’re curious about how buying a diamond engagement ring became the norm – Hollywood is largely responsible. It’s online here: http://edwardjayepstein.com/diamond/prologue.htm)
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Christmas (the story of Coke and Santa), and the commercial explosion of Hanukkah, too.
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I make a budget of what I need/want and also stick to a list when I go shopping. For big items, I first go window shopping and then return later knowing exactly what I will buy. I make sure not to linger around the shop lest I buy an unplanned for item. I love shoes and so in order not to give in to the temptation of buying shoes, I sometimes go to a shop, admire the shoes and try some on. This quenches my desire to buy a new pair of shoes. Another thing is that I do not let peer pressure get to me. I have not had any serious problems during the last few years with shopping.
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JD, if marketing is so insidious, and to be shunned if at all possible, however did you manage to convince people to read your blog? How did you turn it into a money-maker? Magic?
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These days it is almost impossible to avoid advertising/marketing as JD suggests. Therefore, an alternative suggestion:Educate yourself about marketing/advertising and understand the efforts that are being made to influence you.
I started to do this early with my kids – asking the question “What is this commercial trying to sell you?” when we were watching TV. My favorite answer, as my daughter watched an ad for tyres that showed them floating around with little kids inside, was “babies!”.
I’m not sure if this has backfired or not – one is about to graduate college and is looking for a job in Marketing…
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I don’t doubt that companies want very badly to convince us to buy their products and will try all the methods they can to convince us to do so. But it seems to me that if advertising were as omnipotent as we’re led to believe we’d all be drinking New Coke and Crystal Pepsi.
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Marketing doesn’t force you to do anything you don’t want to do. Marketing may convince you to try something by telling you how a product or service will benefit you, and if you decide you like it enough to keep buying it, what’s wrong with that? How would you discover new things you want to buy on your own without advertising? You might find out through word of mouth, but chances are you’d also miss out on a lot of things you wouldn’t know exist. How slowly would technology advance if companies had to wait for consumers to discover new things on their own?
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