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    Retailers Seize The Consumer'S "Regret" Mentality

    2016/6/15 13:35:00 32

    ClothesFashionZara

    Consumer psychology is the most important link in retailing. Retailers firmly grasp the consumer psychology of consumers, and they can reasonably arrange commodity categories and give reasonable pricing strategies to commodities.

    As a consumer, how can you consume? Is it a discount for a retail store with a relatively high price, or is a retail store often offering relatively low prices?

    According to a recent study by Professor of management at the University of Texas technology, although the relative low price may sound better on paper, the possibility of occasional discount at higher prices in the retail industry is much more than that of maintaining a relative low price: it not only satisfies consumer's consumption psychology, but also produces higher profits.

    Reason: Everything caught the consumer's "regret" mentality.

    Meanwhile, KarenZheng, a professor of management at MIT at the same time, said that consumers would have two kinds of regret that they didn't buy it at this point: one was when you bought a dress and later found it was on sale.

    Another regret is: "at that time, consumers did not buy, but after the purchase again found this type.

    clothes

    It has been sold out, so retailers should seize the mentality of letting consumers get the clothes at the first time, and let consumers feel that this kind of clothes will sell quickly and sell well.

    Research shows that, in general, the fear of short selling will be strong enough to allow consumers to pay the full price to buy the first thing they want to see, and to increase the profit of the store by 10%.

    Experts also said: of course, this strategy of keeping relatively high prices is very significant for retailers of certain commodity categories, and similar to ordinary T-Shirts clothing, consumers are more inclined to wait for the discount of clothes.

    brand

    fashion

    From another perspective, it is more suitable to seize the consumer's fear of "future regret".

    Experts say: "for fashion trend goods, fashion consumers prefer to buy this product at the beginning of the consumption season, in order to win more time to wear these fashionable clothes."

    In fact, some brands are very good at making consumers pay the full price to buy goods.

    DanielDoiron, senior retail analyst at Harvard Business magazine, said: "the most typical brand is Zara."

     Zara

    "Magic brand"

    Zara

    The success is largely due to its supply chain, Doiron said. A strong supply chain allows brands to produce less clothing, and fast inventory turnover makes clothing patterns change rapidly.

    "Scarcity is a good tool for Zara to influence consumer behavior," he said.

    "There are always new styles of clothes, and clothes never pile up too much.

    For this reason, Zara has attracted buyers of fashion enthusiasts to buy products at full price. Consumers are very nervous that the products they are looking for will soon be short, so they can't wait for the discount of clothes.

    In fact, the retailer has much less discount than its competitors.

    "They only made 15% reduction in clothing," Doiron said.

    "This is very rare in this industry."

    Zara's pricing strategy has been very effective in recent years. From the annual report of its parent company Inditex, the brand's profit from the camp is kept growing. If you like to maintain the most fashionable feeling as a consumer, you will naturally have several smart fashion cards in your mind, and these fashion brands are very hard to resist waiting for the discount period.

    But here is a strategy to save you as a consumer from regret, that is, don't waste unnecessary money on goods that you don't need.

    When consumers are determined to buy a favorite garment, the price tag must be looked at.

    A recent study shows that when consumers first pay attention to the commodity itself and then the price, consumers can focus more on their love for goods. First, seeing the price will enable consumers to observe the value of the goods more carefully.

    UmaKarmarkar, a professor of marketing at Harvard Business School, points out in the same study.

    "Seeing prices first will give consumers more stress to consider the value of the purchase. If consumers are very price conscious, they may realize that this product is really useful."

    Another key point is: when consumers are hovering over whether they need to buy this product, the price tag is a reflection of encouraging consumers' practicability.

    So this trick is not so useful when consumers are long on a hat or a skirt.

    This research is obviously good for retailers, but not for consumers' wallets.

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