Lesson 1 Smart Consumers
The Psychology Behind Shopping
We often want something so badly that ____ are willing to buy it on the spot.
In these ____ we just act without thinking.
While we usually believe we have control over our purchasing decisions, sometimes ____ really don't.
Our emotions play a vital role ____ shaping our financial behavior.
Marketers use psychological tactics to influence, convince, and ____ deceive us, the consumers.
To make wiser choices, it's essential to understand these psychological traps that ____ our spending habits.
We Fall Prey to Anchoring Bias
Imagine you are in a shopping center, walking by ____ shoe store.
A ____ of striking sneakers in the show window attracts you.
At that moment, you can hardly believe ____ shocking price tag: $500.
Five hundred dollars for a ____ of shoes?
____ doubt your own eyes and walk into the store.
In the store, ____ find another pair of sneakers that looks similar for $200.
After seeing the sneakers for $500, you think the $200 sneakers are a good bargain ____ buy them even though you don’t need a new pair of sneakers.
In this way, we sometimes rely too much on the first ____ of information we receive.
We use it as ____ anchor, or a reference point, to interpret new information.
This can lead to a hasty judgment. How can we avoid having an anchoring ____
We ____ think twice and compare prices.
The more information we have ____ a product and its price range, the less likely we are to fall prey to an anchoring bias.
We Overvalue What We Have
“Start your free 14-day ____
“Click here and start ____ free trial now.”
____ wait? Start your trial today.”
These are typical phrases used in ____
Imagine an ____ (Over the Top) media service provider offers you a free premium service for a month.
The ____ reassures you that you can cancel the service anytime within the month.
Marketers do this because after we use a product, we start to feel a sense of ownership, which makes it difficult to give up ____ product or switch to a different one.
In other words, we tend to overvalue ____ that we already own more than we would if they didn’t belong to us.
Then, how ____ we overcome this psychological ownership bias?
Above all, be aware of ____ “free trial” trap.
Once ____ fall into a trap, it’s important to remember that it can be difficult to escape.
Before you sign up for ____ free trial, remind yourself about how marketers use tactics that make you bond with their products. Cancel the product or service if you don’t need it.
If It Is Hard to Get, We Want It More
How do you feel when you look at an advertisement that says, “Only one left!” or “Today only: ____ off”?
If you ____ buy the product, it feels like you are missing out on a great deal.
Whatever the product is, consumers are usually ____ by a sense of urgency and scarcity.
People think a product or service is more valuable or desirable when they believe the supply ____ limited.
It can be challenging to ignore the temptation of urgency ____ scarcity while shopping.
Still, whenever you feel anxious about missing out on a great deal, you should remember that there are plenty of alternative items that are just as good or ____
We Follow the Crowd
Few people say they enjoy waiting in a long line to buy a ____ or product.
In real ____ however, people often put up with waiting in line for hours to purchase a popular product.
When a ____ fashion item, a beauty product, or a brand becomes popular, we may feel pushed to purchase the product to keep up with the trend.
In other words, we often choose to do something because everyone ____ is doing it.
____ more people do something, the more likely we are to follow the act.
How can we prevent others ____ influencing our shopping decisions?
The next time you feel compelled to buy a product in high ____ because others do it, first ask yourself if you really need it.
Don’t ____ afraid to stand out from the crowd.
Many ____ psychological triggers besides the examples above will make you send more money while shopping.
The best way to spend smarter is to spend after thinking ____ about whether it is a necessary purchase, the best deal, and the right time to buy.