Buzz
Shopping is a tug-of-war between consumers and companies. You want to spend less, while stores are working hard to make you spend more—and they often succeed.
But it's not all your fault. Businesses have an entire arsenal of tricks up their sleeves to get you to part with more of your hard-earned money than you ever intended. From floor tile designs to font sizes, and even intentionally rude salespeople, here are the top ten sneaky tactics they use without us even realizing.
10. The Decoy Pricing Trick
Think back to the last time you went to the movies and bought popcorn. We all know it’s overpriced, but have you ever noticed why the price difference between the small ($3) and medium ($7) is bigger than the gap between the medium and large ($8)? This is because companies use the decoy effect—introducing a cheaper option that makes the most expensive choice appear like a better deal. So, you’re more likely to buy the large, thinking you’re getting more for just a dollar more than the medium.
MIT professor Dan Ariely conducted a fascinating study that highlights the power of the decoy effect. He divided his students into two groups and offered them subscriptions to The Economist. Group A was given the choice of a $59 web subscription or a $125 combined web and print subscription. 68 percent of the students chose the more affordable web-only subscription.
For Group B, Dan switched the options. They were offered a $59 web subscription, a $125 print subscription, and a $125 combined web and print subscription. This time, 84 percent of the students selected the combined subscription, believing it to be the better deal. Simply adding a decoy option increased sales by an impressive 30 percent!
Next time you hear a cashier ask, “Would you like the large for just 50 cents more?” keep the decoy effect in mind.
9. The Power of Dropping the Dollar Sign
Ever noticed the trendy menus at cool restaurants where prices don’t have a dollar sign in front of them? That’s no coincidence. It’s a subtle tactic designed to encourage you to spend more.
Cornell University researchers found that diners tend to spend around 8% more when a restaurant's menu doesn’t display the dollar sign. Professor Sheryl E. Kimes explained, 'References to dollars, whether in words or symbols, remind people of the “pain of paying.”'
8. The Impact of Small Tiles on the Floor
The rise of online shopping has forced traditional stores to get more inventive in order to stay competitive and maintain profits.
In a study of over 4,000 shoppers, Professor Nico Heuvinck from the IESEG School of Management in France discovered that closely spaced, horizontal lines on the floor slow shoppers down, encouraging them to browse more and make additional purchases. When the lines are more spread out, shoppers move faster and spend less.
He also noted that retailers tend to use smaller tiles in aisles featuring more expensive products, while larger tiles are used in areas designed to reduce congestion, such as store entrances.
Next time you're in a store, pay attention to whether the tile spacing differs and how it might influence your shopping behavior.
7. The Power of '.99' Pricing
You may think that $4.99 and $5.00 are essentially the same price, but think again! The difference actually has a psychological impact.
A 2005 study by researchers at New York University uncovered that prices ending in '.99' have a significant effect, which they call the 'left-digit effect in price cognition.' According to the study, 'Nine-ending prices are perceived as smaller than a price just one cent higher.' This happens because, as we read from left to right, the first digit of a price influences us the most. Our brains instinctively view $2.99 as closer to $2 than $3. Additionally, they found that '.99' endings make us think an item is on sale, even when it isn't.
The impact of '.99' pricing was confirmed in a groundbreaking study by professors from the University of Chicago and MIT. They tested a piece of women’s clothing at three price points: $34, $39.99, and $44. Surprisingly, the $39.99 price tag led to the highest sales, even though it was $6 more than the lowest-priced option!
6. The '10 for $10' Trick
How often have we seen a '10 for $10' sign at the grocery store and filled up our cart? It's likely many of us have. But did you know that in most cases, you don't actually have to buy ten items to get the deal?
In fact, '10 for $10' often simply means '1 for $1.' Nevertheless, many shoppers end up buying far more than they really need, as noted by William Poundstone, author of Priceless: The Myth of Fair Value and How to Take Advantage of It.
5. The Tactic of Rude Salespeople
You might assume that a friendly salesperson would lead to more sales, but recent research from the University of British Columbia Sauder School of Business suggests otherwise. According to the findings, the ruder the staff in luxury stores, the higher the profits.
Professor Darren Dahl, the study's author, explained, 'It seems that snobbiness could be a desirable trait for luxury brands like Louis Vuitton or Gucci. Our research shows it may have a similar effect to an 'in-group' in high school that others aspire to join.' In essence, luxury shoppers enjoy fitting in with the high-fashion crowd. They perceive the salesperson’s rudeness as a sign that they don’t yet belong and that by purchasing the expensive item, they will become part of the exclusive circle.
Interestingly, this phenomenon wasn’t observed in mass-market department stores. As Dahl explains, 'Our study shows you’ve got to be the right kind of snob in the right kind of store for this to work.'
4. The 'While Supplies Last' Tactic
We’ve all seen a tempting deal at the supermarket, only to find there's a per-customer limit, like a gallon of milk for just $1.99, but only four per customer. But why the limit? It’s not due to a milk shortage—it's a clever tactic to get customers to buy more than they originally planned.
This strategy convinces shoppers that a product is highly sought-after and scarce, leading them to buy more than they intended—like four gallons of milk instead of just one or two—to avoid missing out.
The illusion of scarcity effect was first demonstrated in a 1975 psychology experiment. In the study, participants were shown two identical jars of cookies—one with ten cookies, the other with only two. The participants rated the cookies in the nearly empty jar as more valuable, believing that their scarcity made them more desirable.
Next time you're booking a flight and a pop-up warns, 'Only 11 seats left on this flight. Buy now!'—remember the power of scarcity.
3. The Effect of Staring at Your Kids
Kids are naturally attracted to sugary cereals, but there may be a hidden reason for this. A 2014 study by researchers from Cornell University and the Harvard T.H. Chan School of Public Health analyzed 65 different cereals across ten grocery stores. The study found that cereals aimed at children are placed strategically on shelves just above their eye level.
But why aren't the cereals placed at eye level? Here's the real twist: researchers discovered that the 'average gaze angle of cereal characters on boxes marketed to kids is downward at 9.6 degrees,' which gives children the feeling that their favorite character is directly looking at them.
In a follow-up study, the researchers found that participants were 28 percent more likely to choose a cereal if the character on the box made direct eye contact with them.
2. The Power of Descriptive Adjectives
Menus at restaurants usually fall into one of two categories: those that simply list the items, and those that offer detailed descriptions. For example, instead of just ‘steak taco,’ you might see ‘authentic carne asada taco with fresh cilantro, onion, and lime, wrapped in a handmade corn tortilla, topped with an avocado salsa.’
Chefs aren’t just describing the food for clarity—they’re boosting their sales. Research from Cornell University and the University of Illinois at Urbana-Champaign shows that these types of menu descriptions can increase sales by 27 percent compared to menus without them.
Interestingly, one of the most successful strategies for boosting sales involves highlighting the brands of ingredients used in menu items (for example, 'Jack Daniels whiskey sauce' instead of just 'whiskey sauce').
1. The Art of Small Fonts
Imagine you’re managing a store and planning to run a sale. Maybe you have a sweater typically priced at $50, but you’re offering it for just $30. You might feel inclined to display the sale price in large, bold numbers, but research suggests that the sale price should actually appear in a smaller font than the regular price.
Why is this? The reason lies in how our brains perceive font size. A smaller font size is subconsciously linked to a lower price. A 2005 study by professors from Clark University and the University of Connecticut revealed that shoppers are more likely to purchase an item when the sale price is shown in a smaller font compared to when it is displayed in large print.
