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The Honolulu Advertiser
Posted on: Sunday, March 22, 2009

Marketing tricks mask real deals

By Nicole Paitsel
McClatchy-Tribune News Service

Hawaii news photo - The Honolulu Advertiser

Among many tricks retailers use to lure customers: smells, lighting and iconic graphics such as the Starbucks logo.

Associated Press

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"Marketers profit by making it easy for you to buy certain things, like accessories to that big-screen TV. Why do you think Amazon.com has one-click shopping? So that it's easy for you to add to your shopping cart."

Matt Wallaert | behavioral psychologist for Thrive, a free online personal finance Web site

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Bargain is the new black, and marketers have caught on.

But when is a sale a deal?

Retailers have developed myriad techniques to entice customers into the store, over to their products and eventually to the checkout line.

Understanding the often subliminal messages is one way to sift through the barrage of sales.

"Consumers are less affected by interruptive marketing now," says Daniel Stein, founder of Evolution Bureau, a California-based digital advertising agency that services companies like Microsoft, Office Max and Burger King. "Everything is about immediacy and consumer control."

Watch for these tricks the next time you step into your favorite store.

A BUYING ATMOSPHERE

The smell of freshly cut grass at the home and garden store is no accident. Some retailers spray the scent into the air, since it subconsciously provokes shoppers to spend more time in the store.

"Smells are definitely a part of the experience," says Michael Mikyska, vice president of business development for Display Boys, a California-based retail consultant firm that designs marketing displays for companies such as Kroger, Pepperidge Farm and Nike. "Shopping is a sensory experience that includes the right lighting, smells and engaging displays."

Mikyska's team, which has worked on Starbucks coffee displays for the past two years, will change the lighting over the coffee aisle in the grocery store to make customers feel like they are in a Starbucks coffeehouse.

"Fluorescent lighting is so cold," he says. "We usually change it to a warmer light, and we use all the Starbucks graphics to make the grocery experience as close to a coffeehouse experience as possible, including the smells."

FEEDING OFF MYTHS

Marketers promote confusion in a few categories, says Matt Wallaert, a behavioral psychologist for Thrive, a free online personal finance Web site. The myth that women don't understand electronics is a great tool for TV retailers, who lead customers to assume the most expensive brand is also the best.

Large name brands also use expensive-looking displays to promote the idea that you're buying what's best for your family. Brands like Pepperidge Farm will use real maple wood displays and words like "fresh" to convince shoppers they're buying the best quality in that category.

And the idea that fresh food is more expensive isn't always true, says Marcie Rothman, author of "The $5 Cook: How to Save Cash and Cook Fast."

For example, bagged salad can be a time saver, but it costs about three times more than a fresh head of lettuce. Salad kits that include croutons and dressing are even more expensive. Rothman also suggests reading the ingredients for spice mixes and boxed rice entrees. You'll generally have the key ingredients — salt as the No. 1 ingredient — in your pantry already. The same goes for tomato-based sauces, which cost $2 to $6 a jar, while the equivalent amount of canned tomatoes is often less than $1.

SHELF PLACEMENT

Look high and low on grocery store shelves for cheaper prices. It varies by retailer, but slotting fees play a part in shelf placement. That means large manufacturers like Kraft get the best eye-level spots on the shelves. Smaller manufacturers, who may not be able to afford a spot at eye level, may offer better prices. Shelf placement also matters on kid-oriented aisles, like the cereal aisle and candy displays. You'll notice those products are placed at a lower eye level.

STORE SETUP

Heading to the store for milk? You'll have to walk through the entire store to get it. Milk, and a few other staple products, are always placed at the farthest point from the front entrance.

The same is true for big-ticket items like TVs at an electronics store.

Retailers use these items as "loss leaders," products that get the customer into the store where he'll be enticed to purchase more than he intended.

"Marketers profit by making it easy for you to buy certain things, like accessories to that big-screen TV," Wallaert says. "Why do you think Amazon.com has one-click shopping? So that it's easy for you to add to your shopping cart."

MOVING ANCHORS

Retailers, especially clothing retailers, mark their merchandise with anchor prices, often tagged as "original" or "suggested." To offer higher percentage sales, retailers will increase those anchor prices a week or two before the anticipated sale date.

This is most common during a liquidation sale, where a third party will reprice all of the merchandise and then offer a sale. Often, items are more expensive than they were before the sale began.

CONSUMER TIPS

The presence of marketing techniques doesn't mean there aren't deals to be had. Here are a few tricks for consumers.

Set your own anchor. Look at the merchandise and decide how much you're willing to spend before looking at the tag. If the tag price is under your anchor price, you've found a deal. Comparison shopping can help you set an anchor price for an unfamiliar product purchase.

Bring cash. This method works especially well for big-ticket items, like TVs or other electronics. The sales circulars will tell you how much the item will cost, so you can bring an exact amount of cash. This will prevent unnecessary accessorizing.

Set up obstacles. Retailers strive to make shopping as easy as possible. So instead of heading straight to the checkout line, step outside for a minute. Wallaert suggests leaving your wallet in the car so that you can't purchase anything before taking a minute to think about it.

"If you're willing to go back into the store and purchase the item, then it's a good buy for you," he says.

Call on experts. Expert friends, that is. Maybe you don't know anything about electronics, but you're sure to know someone who does. Ask them to help guide your research.