Raya promotions: are the discounts worth the hype?

 

Hari Raya is in the air and Malaysians are on the hunt for the best promotions and sales. (Freepik pic)

PETALING JAYA: It’s that time of year again when businesses pull out all the stops to get shoppers to part with their cash.

The ceaseless influx of Raya discounts and enticing offers across supermarkets, malls, and e-commerce platforms can induce an overwhelming compulsion to spend.

Stay up-to-date by following FMT's Telegram channel

FMT

Recently, a viral Tik Tok video depicted the chaos that broke out at a clothing store in Shah Alam where hundreds of shoppers pushed and shoved through the doors to get their hands on RM1 ready-to-wear Muslim clothing.

Ads by Kiosked

It’s no surprise that the holy month of Ramadan has long been a thriving season for businesses to reap the rewards of increased consumer spending. But what is the secret to this enduring trend, which persists year after year, regardless of economic fluctuations or financial hardships?

FMT spoke to marketing experts to find out why.

Ewe Soo Yeong.

According to Ewe Soo Yeong, a senior lecturer at a distinguished private university in the Klang Valley, there are certain fundamental strategies that consistently prove effective in compelling customers to swipe their cards.

These tactics, while seemingly self-evident, are frequently disregarded or neglected by consumers when deliberating their purchases.

“It starts with very simple things, like placing the Raya sale products at the front of the supermarket or telling customers that this promotion period will only be valid for today.”

Ewe adds that these techniques will even convince those not celebrating Raya to join in on the spending frenzy.

Ads by Kiosked

“One of the best tricks in the book known to marketers is the use of drastic discounts on consumer goods. This is known as the anchoring effect,” she said.

Shopping is a must for many during this festive season.
(Freepik pic)

The anchoring effect is a psychological phenomenon where people rely too heavily on the first piece of information they receive when making decisions.

In marketing, this means that if a company sets a high initial price for a product and then offers a discount, people will perceive the discounted price as a good deal, even if it’s still more expensive than the product’s true value.

“If you think from a marketer’s perspective, it isn’t unethical to set an artificially high price and then offer a big discount, because they’re still selling it at the real price. It is really human psychology that does all the work,” said Ewe.

She also said that this tactic is often more effective for non-essential products like clothes and cosmetics, as customers are less aware of the price range for these items.

Everywhere you turn, there’s a long line of shoppers waiting to get their hands on supposed steals. (Bernama pic)

“There’s a reason why you don’t see drastic discounts on rice or milk.”

Ewe suggested that the next time you see a product with a huge discount, ask yourself: ‘Is this really a good deal, or am I being anchored to a higher price point?’

She also highlighted another crucial factor in shaping consumer spending habits – time.

“Short promotion periods are very effective in inducing impulse buying because they prevent customers from thinking too much about whether they need to buy something,” she said.

Once again you are reminded of the vital role of psychology in the realm of marketing.

According to several prominent theories, swift decision-making processes tend to be dominated by emotions, which can result in irrational choices.

In fact, the emotional rush of securing a good deal can even lead to dangerous situations, such as the infamous 2008 incident in New York, where a crowd of shoppers stampeded into the store and trampled a 34-year-old employee to death.

Juliana French.

However, according to Juliana French, a renowned marketing expert, a shopper’s purchasing decisions are influenced by much more than just fleeting emotions. There are profound societal factors at play.

“Products are social tools. They are an extension of ourselves. While we may say that I’m buying something because of its functionality, we must realise that there’s much more to the story,” said French.

She explained that individuals naturally ascribe different meanings to their material possessions. This is referred to as symbolic consumption.

For instance, a luxury car can be a status symbol that communicates wealth and success, while a vintage T-shirt can be a sign of rebellion or nostalgia.

Whether it’s a luxury car or a vintage watch, material possessions often carry a symbolic meaning. (Freepik pic)

French stresses that this may be the reason why spending is often turned up a notch during the festive season.

“Festivals like Raya trigger collective behaviour. When everyone’s buying new clothes, so do you. When your cousin last year showed up to the family home with a brand new car, you do the same thing this year.”

French added that shopping during the festive season can also serve as a coping mechanism.

“For some people, buying gifts for loved ones or decorating their homes can provide a sense of control and purpose.”

So, intelligent marketers then use these emotions to effectively sell their products.

So the next time you’re tempted to make a purchase, remember to take a step back and think – are you creating lasting memories, or are you simply falling for the tricks of the trade? - FMT