THE PSYCHOLOGY OF DISCOUNTS AND FESTIVE SALES

 

THE PSYCHOLOGY OF DISCOUNTS AND FESTIVE SALES

As the festival season approaches, stores are adorned with flashing lights of "50% off" and "limited offers." But what makes us so prone to buying something we don't need? In reality, the psychology of buying is not limited to saving some money; there's more to it. It's the shrewd trickery of the retailers that, most of the time, goes unnoticed. 

There are two types of discounts in the market:

PERCENTAGE DISCOUNT AND RUPEE DISCOUNTS:

Examples are Nykaa’s Pink Friday Sale or MakeMyTrip’s Great Indian Getaway, where they provide discounts from 30% to as high as 70%. It gives higher margins in the industry or stimulates travel bookings in the off-season.

For rupee discounts, Paytm’s flat Rs. 50 cashback and Domino’s Rs. 99 Pizza campaign are some relevant examples. It drives digital payment adoption or positions their product at accurate price points.

Why can't we resist Limited-Time Offers?

The fear of missing out, or FOMO, is a great trigger for sales. When we see words such as "Hurry, it's almost gone!" or "Only 3 items left," our brain goes into urgency mode. It acts quickly to avoid loss, even if one didn't intend to buy in the first place.

The Attachment to Free Gifts

Ever felt excited about getting a “free gift” with your purchase? Retailers like Sephora thrive on this. Offering free samples or small tokens makes us feel like we’re getting more value, which encourages us to spend even more. It’s human nature—we don’t want to miss out on “extras,” even if they’re things we don’t actually need.

How Feeling Like You Own Something Can Influence Buying.

The endowment effect is the point where we mentally claim something as ours. Once we place an item into our shopping cart, our brains start thinking it's already there, and we feel like we need it. For example, if you pick up a gift while shopping and put it in your cart, your brain is likely to keep telling you, “I need this”—a need you hadn't previously considered. This effect makes us more vulnerable to completing the purchase.

The Power of Reciprocity in Shopping

Ever get a "buy one, get one free" deal and feel obligated to buy something? This is reciprocity, where we feel like we need to return a favor. 

The Illusion of Saving Money

We all love a bargain. Sales make us believe we’re saving money, but are we really? Take a look at an expensive jacket marked as $200 slashed to $100. The truth is, the original price might have been inflated just to make the discount look bigger. But our brain focuses on the perceived “savings,” not the actual need or value of the product.

How Price Comparisons Trick Our Minds

The anchoring effect plays on how we compare prices. When we see a "50% off" label, our brain automatically compares it to the original price, making the sale seem like a better deal. For instance, a jacket originally priced at Rs. 200, now marked down to Rs.100, will feel like a great deal, even if the jacket's real value doesn't match the original price.

The Emotional Pull of Festive Shopping

Retailers know that holidays are about more than gifts—they’re about memories. Items like a Starbucks mug or holiday-themed decorations tap into nostalgia, triggering emotions that make us more likely to buy. We’re not just purchasing a product; we’re buying into an emotional experience tied to tradition.

The Cycle of Guilt and Reward

Interestingly, sales also play into our emotions of guilt and reward. Many of us justify buying things during sales as a “treat” for ourselves. After all, we’ve been working hard all year, so why not indulge a little? This mindset makes us feel good in the moment but often leads to buyers’ remorse later.

Conclusion: More Than Just a Sale

Festive sales use psychological triggers like scarcity, reciprocity, and nostalgia to influence our buying decisions. Understanding these tactics can help us make smarter choices and avoid impulse buys. The next time you’re tempted by a sale, remember that it’s not just the price tag—it’s your mind being expertly influenced by clever marketing.

STAY SMART! STAY SATARK!

Blog by:- Tanisha Goyal