Sneaky Marketing Tricks

http://shine.yahoo.com/channel/life/don-t-fall-for-these-sneaky-marketing-tricks-while-you-re-shopping-544635/

Think you’re too smart to fall for marketing mind games? Check ’em out:
A lot of the scenarios below are pulled from the original text, a review of Predictably Irrational, but I tried to explain them more clearly. Hopefully I didn’t make them more confusing!

THE TRICK: Luring customers with a “bargain” option. When a high-end kitchen goods chain introduced bread machines, sales were slow. When the store added a “deluxe” version that was 50% more expensive, they started flying off the shelves; the first bread machine now appeared to be a bargain.

HOW TO AVOID IT: Don’t just buy something on impulse because it’s a bargain. If you’re truly in the market for a bread machine (or a stereo or anything else), compare different models from different stores. And keep in mind that some premium options are there only to make the less expensive options look more appealing.

Related: 7 Little Bargain Shopping Tips That Will Save You Major Money

THE TRICK: Surrounding something worthless with valuable items to make the worthless thing appear valuable. Savador Assael, the Pearl King, single-handedly created the market for black pearls, which were unknown in the industry before 1973. His first attempt to market the pearls was an utter failure; he didn't sell a single pearl. So he went to his friend Harry Winston, and had Winston put them in the window of his 5th Avenue store with an outrageous price tag attached. Then he ran full-page ads in glossy magazines with black pearls next to diamonds, rubies, and emeralds. Soon, black pearls were considered precious.

HOW TO AVOID IT: Try to assess different options based on what they’re actually worth. Is a leather handbag with a fancy label and a $1,000 price tag really worth more than a leather handbag with a $500 price tag? Or a $100 price tag? Sure, there are different qualities of leather, but eventually, are you just paying for the label because someone told you it’s worth more?

See our tips: How Not to Pay too Much for Car Repairs.

THE TRICK: Offering new-and-improved anything. A group of MIT students tasted two different beers, and then choose to get a free pint of one of the brews. Brew A was Budweiser. Brew B was Budweiser, plus 2 drops of balsamic vinegar per ounce. When students were not told about the nature of the beers, they overwhelmingly chose the balsamic beer. When students were told about the true nature of the beers, they overwhelmingly chose the Budweiser.

HOW TO AVOID IT: Ignore labels like “premium” or “pro” or “award-winning,” which have no actual merit. Remember that a “new and improved” product might just have slightly different packaging. Or a few drops of vinegar.

Related: 20 ways to live rich on less money!

THE TRICK: Preying on customers’ assumption that expensive items work better. A research team made up a fake painkiller, Veladone-Rx. An attractive woman in a business suit (with a faint Russian accent) told subjects that 92 percent of patients receiving Veladone-Rx reported significant pain relief in 10 minutes, with relief lasting up to 8 hours. When told that the drug cost $2.50 per dose, nearly all of the subjects reported pain relief. When told that the drug cost 10 cents per dose, only half of the subjects reported pain relief.

HOW TO AVOID IT: Don’t automatically assume that expensive items are the best. If you start your shopping by comparing lower-end models, you might realize the high-end models have a bunch of extras you don’t actually need. And when you’re shopping for meds, keep in mind that the product in the store-brand box is often the exact same product as the one in the name-brand box. Ignore the temptation to pay more.

Well, I’m pretty sure I’ve fallen for every one of these tricks.

Anyone else feeling duped? Do you guys do your shopping with a list? Do you comparison shop ahead of time? Or do you just head to the store and assume you’ll be able to sniff out the best bargains?