How to Shop Smart And Save During This Festive Season Sales

The festive season brings with it a shopping frenzy that has the potential to disrupt budgets and tempt even the most frugal shoppers. With online sales like Flipkart's " The Big Billion Days " and Amazon's "Great Indian Festival" attracting millions of visitors, and countless other retailers capitalizing on the sale fever, it's essential to approach these shopping extravaganzas with caution.

# Understanding the Shopping Triggers

Sales, discounts, and promotional offers can exploit consumers' cognitive biases and emotional triggers, leading to impulsive spending. To address this issue, it's crucial to understand the psychological factors at play.

# Cognitive Biases at Work in Sales

1. Bandwagon Effect

People often follow the crowd, irrespective of their own beliefs.
At Sale: The hype surrounding big sales creates the perception that everyone is making purchases, fueling the desire to be part of the trend.2. Confirmation Bias

Seeking information that reinforces existing beliefs.
At Sale: Shoppers enter sales convinced that they will find great bargains, even if the discounts aren't as significant as anticipated.3. Sunk Cost Fallacy

Reluctance to abandon an endeavor due to prior investment.
At Sale: Spending substantial time browsing in a mall during a sale may lead to buying unnecessary items to justify the time and effort invested.

4. Anchoring Bias

Trusting the first piece of information encountered to make decisions.
At Sale: Shoppers may anchor on the original price and perceive discounts as more significant, even if better deals are available elsewhere.

5. Scarcity Bias

Valuing items perceived as limited in quantity.
At Sale: Urgency tactics, like "limited time deals," push consumers into making impulse purchases.

6. Restraint Bias

Overestimating one's self-control.
At Sale: Shoppers may believe they can resist overspending, yet the vast array of items and discounts can lead to excessive purchases.

# Why Shoppers are Drawn to Festive Sales

Retail brands exploit consumers' desire to shop during the festive season and their inherent biases.
Several factors make shoppers readily succumb to these sales:

• Feel-Good Factor: Buying new things is perceived as a reward by the brain, releasing dopamine, which adds to the festive feel-good atmosphere.
• Bandwagon Effect: The influence of others shopping during sales encourages people to join in, even if they don't need the items.
• FOMO (Fear of Missing Out): Retailers create a sense of urgency, making consumers fear missing a great deal, leading to impulsive purchases.
• Lure of Value Purchase: Shoppers believe that sales guarantee good deals, leading to purchases, even if the discounts are not substantial.
• Ease of Payment: Simple payment options like "buy now, pay later" or no-cost EMIs make the purchase process quick and painless, driving people to explore various spending categories.

# Tricks Used by Retailers

Retailers employ subtle psychological tricks to encourage higher spending during sales:

• Price Framing: Highlighting or downplaying prices to create an illusion of affordability or higher discounts.
• False Urgency: Informing customers that products or deals are in limited supply, pressuring them to buy quickly.
• Family Packs: Offering products in bulk at a discounted price, leading consumers to buy more than needed.
• Cross-Selling & Upselling: Recommending additional products at checkout and suggesting pricier alternatives.
• Social Proof: Sharing positive reviews to reassure shoppers about their choices.
• Sense of Loyalty: Reward schemes and loyalty cards create a sense of commitment, encouraging shoppers to buy more.
• Store Layout: Meandering layouts aim to expose shoppers to more products.
• Nudging: Providing reminders to buy items, especially for FMCG products, based on past purchases or price drops.

# How to Avoid Overspending

To avoid falling into the overspending trap during sales, consider these strategies:

1. Set a Budget: Prepare a budget specifically for the festive season and stick to it, discussing it with your family.

2. Make a List: Create a list of items you genuinely need and stick to it, focusing on value rather than discounts.

3. Research: Investigate prices, compare offers, and assess the authenticity of discounts before making a purchase.

4. Use Price Tracking & Comparison Tools: Utilize websites and apps to track prices and compare offers across retailers.

5. Sleep on It: If you're prone to impulsive purchases, delay decisions by taking some time to think about the item.

6. Delay Payment, Avoid Credit Cards: Opt for payment methods that give you time to reconsider your purchase, such as net banking.

By following these steps and understanding the psychological and marketing tactics at play, you can make more informed and controlled purchasing decisions during the festive season sales .