Posted in Marketing & Strategy Articles, Total Reads: 1347
, Published on 27 January 2014
Since childhood, I always found this time of the year special. The savory aroma of sweets mingled with the aroma of incense, the splitting noise of drums and whacky that somehow seems like music to the ears, the sparkling decorations, the ballroom lights, loud colors and what not. And alongside, the festal season conjointly brings in a lot of discounts and offers. It appears like the complete world is on a reduction, right from that 5 hundred thousand rupee automotive thereto one hundred eighty rupee hair color which implies, each item within the market, each advertisement on tv, on radio and newspaper is competitive for each rupee in your pocket. The pop-up place of business offers you special costs even via your gmail, and facebook accounts. Neither are you able to run, nor are you able to hide.
The question here is -does one need to run or hide. The answer is none. The festal season changes one thing in our minds that creates you pay, now and then even over pay. As per Parag Parikh, author of valuable finance and activity finance, “When your spouse gifts you a Rs 5/- rose, you feel elated. Now imagine, he/she merely replaces it by a Rs5/- currency note. The emotions you felt whereas obtaining the rose are terribly different than receiving the note.” But, the worth in both cases are same. However our mind processes things differently. This is owing to emotions. And, an equivalent emotion is targeted by the retailers at such times.
Image Courtesy: freedigitalphotos.net, noppasinw
In fact advertisers have designed a full trade around our emotions. They use psycho-graphics, demographics and behavior of past purchases (database marketing) to find the triggers that motivate us to pay. Simply take a glance at the Diwali special advertisements that run on TV. Cola doesn't style any different in Diwali, however the advertisement makes it style higher, sweeter throughout festivals, while not that festal season would be incomplete. Or take the Cadbury chocolate advertisement conveys the message, “Whom will you make happy this Deepawali”. Electronic items, right from flat screen LCDs to digital cameras, from thin laptops to smartphones, amalgamate the festal season mood in their advertisements and associate us on an emotional level where we purchase, purchase and purchase.
So whereas on one hand, we have a tendency to be jam-packed with emotions with festal mood, on the opposite hand we have a tendency to even have marketers go crazy to influence our minds. Then there are bonuses (the lucky PSU, government staff and like). It’s proven by researchers that we have a tendency to treat bonus cash in a different way than our earned cash. The mind treats bonus as the “found money” and something that needs to be enjoyed than an equivalent sum of money in our savings account. And for people who don’t get bonuses, the 3X2 inches size master card comes for rescue. Again, researches have proved that mind processes plastic cash differently than hard money straight from our wallets. With recreation within the air and heart, it’s simply becomes less painful pay via the card than to give hard-earned money. While the same item was a luxury before, a tiny low discount makes our mind assume it is reasonable now. Then we've social pressures to belong to a definite club, in spite of everything success these days is outlined by what we have a tendency to own, what we have a tendency to drive, what we have a tendency to wear, and also the flatness of our TV and thinness of our laptops, and also the festal season is that the best time to point out all that we have a tendency to area unit to our friends and family. And as somebody once same, we have a tendency to purchase things we have a tendency to don’t get to impress folks we have a tendency to don’t like with the money we have a tendency to don’t have.
There’s nothing wrong in enjoying the money you earned, however, keep in mind that you just pay around four-hundredth rate of interest every year on these items which may simply price double if you retain rolling that master card. Make advantage of these gimmicks by retailers to assist you search well and search wiser. The year 2013 is seeing a difference in the approach by retailers. With the announcement made by new RBI governor to eliminate interest-free installments from their festive offers, which tend to fool the customers who end up paying extra in the names of processing fee etc., retailers are brainstorming over new ideas to “fool” their target audience. It’s a good initiative taken up to clamp rupee fall at the time which is very critical. The weakening economy can’t afford to have a structure where its citizens get fooled by such offers and spend money lavishly. In other words, such practices resort to sheer failure of customer protection and accounting integrity.
The retailers take a different stand at this. They are of the opinion that such a move of banning zero interest loans would deprive customers who aspire to buy certain items during the festivities but can’t afford them, which would ultimately depress the sales. While retailers have their point, banks are no less to be blamed. RBI mentioned that it becomes duty of the banks to let their customers know of the benefits and pass them the benefits without any discrimination and should not tamper with the interest rate while sanctioning the loan. RBI also advised banks to terminate their relationships with any dealers who charge customers more for such loans. Undoubtedly, these small steps are the leading steps to the making these festive purchases a positive-sum game wherein all the involved parties win their share of the pie.
This article has been authored by Rama Pandey from IMT Ghaziabad
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