Expert Advice for a Budget-Friendly Holiday Season
When it comes to the festive season, shopping seems to start earlier and earlier every year. On the one hand, the fight for customers’ attention may be quite entertaining. On the other, we should not fall into the commercial trap but rather take advantage of only truly beneficial deals. Dr. Indrė Ščiukauskė and Dr. Antanas Ūsas, lecturers at the Institute of Social Sciences and Applied Informatics, Kaunas Faculty of Vilnius University, share their professional insights that can help identify which offers actually respond to our needs, and which ones are not of particular value.
“It is no secret that the winter holidays are a peak time for marketers; thus, festive campaigns are planned in advance throughout the year. Soon after All Souls’ Day, various “Christmas offers” begin popping up, and promotions in a big red font start to catch the eye,” says Dr. A. Ūsas, adding that there is a variety of visual solutions being used to attract our attention, each time becoming much more creative. Their consistent and targeted use across all communication channels helps create the desired connection between the seller and the buyer.
Great-value deals
According to the researchers, such advertising slogans as “Get ready for the holiday season!” or “Christmas Sale” work as a warning to start preparing now. “This type of reminder is not bad in itself, yet it makes people anxious and turns them into a more amenable audience,” explains Dr. A. Ūsas. He believes that persuasion strategies make good use of both the public’s desire to save money and get the best bargain. He advises checking the average prices of one’s major planned purchases before the holiday season. “One of the most common commercial tricks in Lithuania is juggling with prices by artificially increasing them for a short period of time and then reducing so that the “sale” looks more impressive,” he says. This is where the regulation known throughout the European Union as the “30-day rule” becomes relevant. This means that any discount must be calculated against the lowest price for the item in the 30 days immediately prior to the price reduction so that the buyer can objectively assess the true value of the offer.
The lecturer explains that luxury brands, e.g. “Chanel”, “Louis Vuitton”, and “Rolex”, use a slightly different market model: “These brands seek to maintain their prestigious image and, therefore, expect consumers to be willing to pay premium prices. Their advertising campaigns are more likely to entice you into purchasing a gift for yourself or your loved ones, making you feel unique and special. Of course, there can be exceptions as well. Even luxury brands sometimes announce discounts, particularly on special occasions like Black Friday or Valentine’s Day. However, such discounts are usually small, limited to certain items, and designed to create a viral buzz, where the audience itself turns into advertisers and brand ambassadors on social media.”
Limited-edition strategy
Another well-known marketing strategy is to promote popular products or services with the lowest prices in the local market in order to boost sales. “It is enough to mention that there is a limited supply of such goods to make buyers take action,” says Dr. A. Ūsas. According to him, this strategy works so well because of consumers’ laziness: when they do not find the desired item, they often choose other undiscounted products, thus driving the sales up.
Dr. I. Ščiukauskė adds that these principles apply not only to physical stores but also to online trading and social networks: “Influencers with high following can boost their customers’ sales by using emotional advertising stimuli: spreading the fear of missing out, trying to cause holiday anxiety, selling the idea that particular products are scarce, and encouraging shoppers to be active. The social aspect – popularity – becomes particularly important.” According to the researcher, these techniques tend to be quite effective because influencers usually not only advertise a certain product but also demonstrate using it themselves so that the audience willing to identify with their authority has the opportunity to do so by purchasing the same items. This builds a sense of closeness and creates an illusion of belonging to some community, while influencers in this situation establish what is referred to as “source credibility”.
Another thing worth mentioning is so-called storytelling. The global brand “John Lewis” uses this method to great effect during the holiday season. “For many years now, the brand’s festive advertising has been among the most anticipated ones. Christmas and its traditions are the perfect occasion for an emotionally engaging advertising campaign aiming to build audience loyalty. The brand’s latest Christmas ad, “Snapper: The Perfect Tree”, is an example of the combination of emotional and storytelling stimuli,” comments Dr. I. Ščiukauskė. “Trigger marketing is often used to attract attention, affect the audience with a creative message or media expression forms, encourage the desired buyer behaviour, or change their attitude towards the brand. It is important that this strategy is employed at every point of the consumer journey.”
The more, the better?
Economies of scale involve eye-catching sales promotions which only apply for buying multiple products at a time: shoppers are encouraged to buy two items for the price of one, spend X amount of money to buy a “value” item for just one cent, or take part in a price lottery.
“Such sales promotions are based on the economic theory stating that consumers are more prone to making purchases when they believe they are getting a better deal. When a buyer gets an additional product at a low price or free of charge, they feel they are getting a higher value for the money spent. This encourages them to buy more and share information with others,” explains Dr. A. Ūsas. He urges consumers to pay attention to products and their shelf life. Often, such promotions apply to products that would otherwise be discarded due to the excessive stock of them. “This type of sales is aimed at several groups of shoppers: both emotional buyers and those who rather take rational and thoughtful decisions. This creates a greater likelihood of achieving the word-of-mouth effect, which is one of the most reliable advertising channels in today’s market,” comments the researcher.
Expert advice on money-saving strategies
For those willing to avoid overspending, the experts suggest that the first thing to do before going shopping is to check what you already have at home so as to avoid purchasing unnecessary items. It is also a good idea to make a list and plan your shopping, including the date and the shops to be visited. Moreover, make sure you have eaten and rested, as tiredness and hunger generate extra costs. Since the same product usually varies in price from one store to another, the marketing experts advise consumers to look up stores and their offers beforehand and also remember to check deals online. It is crucial to assess whether a certain product is actually needed – this will not only help you save money but also make shopping more sustainable. Finally, the experts suggest saving time, especially during the holiday season. In the age of smart technology, most goods, including food, can be purchased online. Items delivered at one’s door or to self-service parcel terminals can save consumers a lot of time and help them avoid emotional shopping as well as long queues at supermarkets.