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Professor Kai-Markus Müller from Furtwangen University on the tricks used by retailers
Christmas music, the smell of gingerbread, and a festively decorated Christmas tree – what sounds like the ingredients for a cozy living room atmosphere is also used in many stores during the Advent season. Whether it's Black Friday, Black Week, or the Christmas countdown, now is bargain season and one of the busiest times of the year for retailers. At Furtwangen University (HFU), Dr. Kai-Markus Müller is a professor of consumer behavior – and in the run-up to Christmas, he finds many examples that confirm his research findings. Take the issue of smell, for example, "Studies have found that when shopping experiences are consistent, i.e., when they fit together, it increases our willingness to pay and buy. This means that when there is a Christmas scent in the air and appropriate music playing during Christmas shopping, we spend more money on gifts." An olfactometer can be used at HFU to investigate the connections between smell and purchasing decisions. This device can be used to expose study participants to specific and reproducible smells in order to examine their reactions.
Another trick that companies use both during the Christmas season and beyond is the “price anchor.” “A particularly expensive product is prominently displayed, with a similar but cheaper product right next to it. In comparison, the cheaper product then appears to be an attractive bargain – even if there is no real discount,” explains Prof. Müller.
In online retail, it is not possible to work with smells and only rarely with music, but even there, the purchase decision is influenced. The presentation of the products on the website is deliberately structured. “The consumer's brain hates being spoiled for choice, it doesn't want to have to decide, but it loves the illusion of having made a free choice,” explains Prof. Müller. “The ‘tendency toward the middle’ also plays a major role in the development of these decision-making architectures for online shops. The product selection is presented in such a way that the middle product always appears to be the ‘apparent’ golden mean.”
According to Dr. Kai-Markus Müller, simply writing a shopping list can help prevent people from falling into a shopping frenzy. “But it's also very important to stick to it – if you just go shopping, you always lose.” He adds with a smile, “Even as an expert, I'm not immune, which is why I recently bought some discounted sweaters – even my wife was surprised.”
Behavioral economics refers to the happiness of a good deal as “transaction utility.” “People enjoy not only the product, but also the bargain itself. Those who are aware of transaction utility can use this knowledge to take targeted countermeasures,” reveals Prof. Müller.
The topics of consumption and purchasing behavior are relevant not only at Christmas, but throughout the year. So Professor Müller has already planned many exciting projects for next year. “I can't reveal too much yet, but I'm currently working on artificial intelligence and pricing. I would also like to further develop and expand the field of odour research at the university.”