As shoppers gear up for one of the busiest buying seasons of the year, there鈥檚 good reason to be skeptical, according to a University of Colorado Boulder marketing expert.
Click image above for downloadable soundbites of Donnie Lichtenstein explaining his research on sales and online product ratings.
Donnie Lichtenstein, professor at the Leeds School of Business, has studied sales tactics for more than four decades. He鈥檚 recently done research into online product ratings systems on websites like Amazon.
On holiday sales: Lichtenstein has researched one common tactic: stores will run an advertisement referencing a higher price elsewhere.
鈥淎nd many, many, many times, these things are just deceptive, trying to create the perception of a good deal, when it鈥檚 not,鈥� Lichtenstein said.
Why stores get away with deceptive advertising: Lichtenstein noted attorneys general and their offices are typically in charge of busting bad actors. But regulators are at a disadvantage.
鈥淭hey鈥檙e woefully understaffed,鈥� Lichtenstein said. 鈥淪o many times, it鈥檚 just 鈥榗onsumer beware.鈥欌��
Why you should skip most online product ratings: Many online shoppers use product ratings from other users to find good products and avoid the bad ones. However, according to Lichtenstein鈥檚 research, the stars next to a product are a terrible guide.
- 听(note: time codes log in description box)
- Download radio clips and suggested script
鈥淚f they paid a high price for it, they鈥檙e going to want to feel like they got a good deal. To justify that high price, they鈥檒l give it a high rating,鈥� Lichtenstein said.
Lichtenstein's research also found people tend to be biased toward or against certain brands. That bias is a major factor in peoples鈥� ratings, he said.听
He recommends finding a third-party website that has rated several models of the product you are looking to buy.
Contact:
Andrew Sorensen
andrew.sorensen@colorado.edu