“The thrill of using a coupon and getting a better deal than other consumers takes precedence and shoppers lose sight of the actual cost,” Utpal Dholakia, a professor of marketing at Rice University, wrote in Psychology Today. “The result: Regular coupon users often spend more for an item than those who don’t use coupons.”
Coupons typically force people to buy items that they don’t need.
To avoid falling victim to the scheme, Dholakia told Business Insider you should only use coupons for items you need.
“If we are talking about groceries (where coupons are common), make a shopping list first, then try to find coupons for the items on the list,” Dholakia said. “That way, you will only buy things you need and get a real deal instead of buying things you may not use.”
Companies trick you into buying more than you actually need when using a coupon.
“They spend more because they end up buying items they don’t really need just because they are on sale, or buying more of an item because of how the promotion is structured,” Dholakia told Business Insider. “This is quite common in grocery product categories but also occurs in other categories like fashion.”
When a coupon has an expiration date, you often feel the need to act fast.
Keeon Yazdani, chief marketing officer of WE R CBD, said his company sends these types of coupons to its customer base regularly.
“Below the coupon code, we always disclose the expiration date for the coupon code,” Yazdani told Business Insider. “We use language like, ‘Act fast! Supplies are limited! Time is running out!’ We have found this builds a sense of urgency with our customers because they will want to stock up on our CBD products before they go back to the original price.”
“BOGO,” “50% off,” and free shipping sales are specifically designed to make you spend more money.
“The reason this works so well is that humans hate the pain of losing something more than they enjoy the satisfaction of gaining something,” Anderson told Business Insider. “Due to this, customers often face post-purchase regret if they know that they could have received a deal on an item but didn’t capitalize on it. This regret, or perception of regret, causes customers to stretch for deals even if it doesn’t really benefit them.”
Coupons are designed to make it easier to spend over your budget.
When using a coupon, it’s easier to talk yourself into going over your budget because you convince yourself that you’re saving money in the long run. “Using coupons is only one way to go over budget. Many shoppers make impulsive purchases even without coupons which can throw them off track,” Dholakia told Business Insider. “Bottom line: Use coupons with caution and careful thinking. That way, you’ll end up saving money, shopping prudently, and consuming your purchases wisely.” [“source=businessinsider”]
