As e-commerce gained popularity amongst the masses, the private consumer spending has increased significantly over the last few years. Countless promotions and discount offers has overwhelmed the consumers and turned them into buying machines. Consumers seem to be paying little attention to the things they actually need to buy and things they don’t need but end up buying being enticed by the promotional offers.
The most important thing that influences this extravagant spending is the discounts that are being offered. These discounts are a good way to attract customers, creating artificial demand towards those things that they don’t need. Most consumers fall in the advertising trap laid out by the brands as they know little or nothing about the clever marketing tactics employed by businesses to create artificial need.
That is why promotional marketing has increased alarmingly with mobile phones constantly ringing with new sales promotions and discounts. Consumers are ignoring the need base analysis while making hasty purchase decisions. If such measures are taken by the consumers, then the impact of these sales promotions and discounts can decrease substantially.
Warren Buffet once said about purchase decisions of consumers, “If you keep on buying things you don’t need, soon will come a time when you will have to sell things you do need.” This saying is similar to Buffet’s advice on spending and saving where he says, “Don’t save what is left after spending, rather spend what is left after saving.”
On special occasions, many online stores in Pakistan have sold products on up to 70-80% discount for the whole week. Such discount weeks have been celebrated in Pakistan for the last two years and due to the competition in e-commerce industry, such trends are set to continue in the near future as well.
Special discounts are being provided on smartphones and people end up spending thousands of rupees on new phones even though their phones are working perfectly fine and with no need to change. But the discount offered just pushes consumers to the limit of their buying behavior decision and they end up getting new smartphones every 6-12 months just because of these discounts.
Credit cards are playing a vital role in promoting such discounts as well, as people buy products thinking that they will eventually end up paying for it later on. Similarly, additional discounts are being offered if a consumer purchases products through other payment services like Easy Paisa, Jazz Cash, and others. Thus the added discount creates an irresistible buying urge amongst customers to get these products.
The monetary resources that are being utilized by the consumers on buying things that they don’t need can be utilized in a more efficient manner so that consumers end up buying things that they only need after going through rigorous buying decisions.