tag:theconversation.com,2011:/global/topics/sales-25530/articlesSales – The Conversation2023-12-25T21:08:15Ztag:theconversation.com,2011:article/2195072023-12-25T21:08:15Z2023-12-25T21:08:15ZHow Boxing Day evolved from giving Christmas leftovers to servants to a retail frenzy<figure><img src="https://images.theconversation.com/files/566753/original/file-20231219-15-pl6vcr.jpg?ixlib=rb-1.1.0&rect=360%2C227%2C5572%2C3987&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/great-big-seasonal-boxing-day-sale-1845136369">Pro-stock Studio/Shutterstock</a></span></figcaption></figure><p>The Boxing Day sales are an essential part of Australia’s festive season.</p>
<p>Every year on December 26 news outlets invariably feature stories about excited shoppers queuing up at the major department stores hoping to score bargains and heavily discounted products. While such reports portray the day’s sales as a time-honoured tradition, they are only a recent ritual.</p>
<p>The <a href="https://www.abc.net.au/news/2020-12-26/history-of-boxing-day-servants-sales-and-saints/12864436">origins of Boxing Day</a> date back to the Middle Ages, when English masters gave their servants a day off after the Christmas celebrations. The servants would be given a box containing leftover food and treats to share with their families. In 1871 the day was formally recognised as a public holiday in the United Kingdom. Australian colonies later followed suit.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/really-need-those-new-shoes-why-you-might-spend-up-big-at-the-black-friday-sales-218241">Really need those new shoes? Why you might spend up big at the Black Friday sales</a>
</strong>
</em>
</p>
<hr>
<p>In the 19th and the early 20th centuries, the Boxing Day holiday was largely a day of rest and entertainment. Community sporting events were often held – a tradition that continues in Australia with the Boxing Day Test in Melbourne and the Sydney to Hobart yacht race.</p>
<p>As Boxing Day was an official public holiday, major retailers like department stores were not permitted to trade. These stores only re-opened for business three to five days after Christmas. Retailers certainly advertised “post Christmas bargains”, but most used this period to prepare for the annual stocktake sales that began shortly after New Year’s Day.</p>
<h2>When the day became all about shopping</h2>
<p>A gradual shift occurred during the economic boom after the second world war.</p>
<p>As consumer expenditure increased, the competition between retailers intensified. Eager to get ahead of the pack, Myer was advertising its “<a href="http://nla.gov.au/nla.news-article243434457">pre-stocktaking sale</a>” in 1954. As others began their post-Christmas stocktake sales earlier, they became a key part of the retail annual cycle.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-christmas-music-in-adverts-and-shops-harnesses-nostalgia-to-encourage-you-to-spend-more-219277">How Christmas music in adverts and shops harnesses nostalgia to encourage you to spend more</a>
</strong>
</em>
</p>
<hr>
<p>By the 1980s retail trading hours were coming under pressure. Since the beginning of the 20th century, retail was confined to 9am-6pm on weekdays and 9am-midday on Saturdays. Changing work patterns meant many Australians were only able to do their shopping in a mad rush on Saturday mornings. Over the 1980s and 1990s, trading hours were progressively extended in each state.</p>
<p>The liberalisation of Victoria’s retail trading hours coincided with a further intensification of competition across the department store sector. <a href="https://www.afr.com/politics/confident-daimaru-opens-huge-store-19910910-k4kfb">Daimaru</a>, a Japanese department store, opened a branch in Melbourne in 1991. In its battle to steal market share from Myer and David Jones, Daimaru pioneered new initiatives, including 24-hour trading in the lead up to Christmas and trading on Boxing Day.</p>
<p>To promote its Boxing Day sale and generate a real buzz, Daimaru advertised a small number of enormously discounted products. These door buster sales worked. Crowds queued in the early hours of the morning to snare one of the bargains. As the doors opened, mayhem ensued as frenzied shoppers literally burst into the store.</p>
<h2>The pursuit of a bargain got a little too serious</h2>
<p>The appeal of the door buster sale took a hit in 1993 when one eager shopper lost the tips of her fingers in the store’s roller doors. Fearing further carnage, extreme discounts were subsequently dropped, but the crowds hoping to catch a bargain remained. By 2000, Boxing Day sales had become a firmly entrenched tradition.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Bargain shoppers try to push their way past a security guard to get into a store" src="https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The door buster sales stopped soon after one keen shopper was injured in the rush.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/mad-shoppers-breaking-into-shop-during-2369347377">DC Studio/Shutterstock</a></span>
</figcaption>
</figure>
<p>Although the novelty had faded, Boxing Day sales nevertheless remained an exciting event. Television news crews continued to capture the excitement when the <a href="https://www.youtube.com/watch?v=PIK8dEA1pWc">stores opened</a> while newspapers reported on the size of crowds and what this revealed about the state of retail and the economy more generally. </p>
<p>By 2018, a discernible shift was occurring. <a href="https://www.theage.com.au/business/consumer-affairs/there-at-3am-bargain-hunters-up-before-dawn-for-boxing-day-sales-20181226-p50o8d.html">Fewer people were queuing up</a> and stores were opening later. The major department stores were no longer the dominant retailers they had once been. A broader range of brands and cheaper products could be found elsewhere, notably online, where bargains could be secured without the frustrations of dealing with other frantic shoppers.</p>
<h2>The arrival of online shopping</h2>
<p>Online shopping changed Australian shopping patterns as bargain hunters could now access overseas sales like Black Friday in the United States. Staged on the day after Thanksgiving, Black Friday is American retail’s busiest day that also kicks off the Christmas shopping season. Sales abound as retailers desperately chase shoppers. </p>
<p>Online has become an integral part of these sales, with Black Friday being extended to Cyber Monday. Australians shopping online have readily joined in.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/an-austere-christmas-is-on-the-cards-but-dont-say-recession-218718">An austere Christmas is on the cards – but don't say recession</a>
</strong>
</em>
</p>
<hr>
<p>In 2022 Australians <a href="https://news.nab.com.au/news/black-friday-and-cyber-monday-sales-top-7-billion/">spent an estimated A$7.1 billion</a> over the Black Friday sales period. While this figure is eclipsed by the $23.5 billion predicted for Boxing Day sales period, the reality is the gap is shrinking fast.</p>
<p>This year, it is predicted Australian expenditure on Black Friday will exceed that for Boxing Day.</p>
<h2>Will Black Friday overtake Boxing Day?</h2>
<p>So, are Boxing Day sales doomed to become another lost tradition? Large discounts and the convenience of shopping online have certainly helped Black Friday’s rapid growth. However, its real advantage is timing. Shoppers not only use these sales for themselves, they can do their Christmas shopping at the same time. Such a combination means Black Friday has quickly become a fixture in Australian retailing.</p>
<p>Of course, Boxing Day sales are not dead. Wherever there are bargains to be had, there will always be shoppers ready to buy. Rather than competing with Black Friday, it seems that the challenge for Australian retailers is to reinvent the Boxing Day sales tradition.</p>
<p>Maybe it’s time to bring back the door buster bargains.</p><img src="https://counter.theconversation.com/content/219507/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Robert Crawford receives funding from the Australian Research Council’s Discovery Project scheme (DP220100943) </span></em></p>Boxing Day has its origins in the Middle Ages and had nothing to do with post-Christmas sales. It is facing further change with the popularity of online shopping.Robert Crawford, Professor of Advertising, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2014442023-03-13T12:25:52Z2023-03-13T12:25:52ZVinyl record sales keep spinning and spinning – with no end in sight<figure><img src="https://images.theconversation.com/files/514711/original/file-20230310-457-ux6tfh.jpg?ixlib=rb-1.1.0&rect=27%2C18%2C6011%2C3992&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">There are far easier ways to consume music than buying records, which takes time, money and effort.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/massapequa-park-n-y-a-person-looks-through-a-selection-of-news-photo/1346015617?phrase=vinyl record store long island&adppopup=true">Alejandra Villa Loraca/Newsday via Getty Images</a></span></figcaption></figure><p>Over the past decade, vinyl records have made a major comeback. People purchased US$1.2 billion of records in 2022, a 20% jump from the previous year. </p>
<p>Not only did sales rise, but they also surpassed CD sales for the first time since 1988, according to <a href="https://www.riaa.com/2022-year-end-music-industry-revenue-report-riaa/">a new report</a> from the Recording Industry Association of America.</p>
<p>Who saw that coming?</p>
<p>I certainly didn’t. In the mid-1990s, I sold off my family’s very large collection of records over my wife’s protests. I convinced her we needed the space, even if the buyer was picking up the whole stash for a song. </p>
<p>Back then, of course, there were far fewer options for listening to music – it was years before <a href="https://pitchfork.com/features/lists-and-guides/9986-the-year-in-streaming-2016/">on-demand streaming</a> and <a href="https://www.shockwave-sound.com/blog/music-on-the-move-a-short-history-of-mobile-listening/">smartphones</a>.</p>
<p><a href="https://www.bu.edu/questrom/profile/jay-zagorsky/">I now teach at a business school</a> and <a href="http://businessmacroeconomics.com/">follow the economy’s</a> latest trends. Sales of records have been increasing since 2007, and the data shows the vinyl record industry’s rebound still has not peaked. Last year, the music industry sold 41.3 million albums, more than in any year since 1988.</p>
<p><iframe id="qVcyg" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/qVcyg/1/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>This resurgence is just one chapter in a broader story about the growing popularity of older technologies. Not only are <a href="http://www.the-standard.org/life/vinyl-records-making-a-comeback-after-30-years-of-being-behind-cds/article_9108143e-3bdd-11ea-be0d-97edd557218b.html">LP records coming back</a>, but so are <a href="https://www.washingtonpost.com/dc-md-va/2018/09/24/sales-are-booming-manhattan-typewriter-store-mostly-thanks-young-people-tom-hanks/">manual typewriters</a>, <a href="https://www.washingtonpost.com/business/2022/12/24/board-game-popularity/">board games</a> and <a href="https://theconversation.com/why-are-so-many-gen-z-ers-drawn-to-old-digital-cameras-198854">digital cameras from the late 1990s and early 2000s</a>.</p>
<p>There are many <a href="https://blog.technavio.com/blog/reasons-behind-upsurge-vinyl-record-sales">theories about why records</a> are <a href="https://www.readersdigest.co.uk/culture/music/why-is-vinyl-making-a-comeback">making a comeback</a>. </p>
<p>Most of them miss the point about their appeal. </p>
<h2>Why records and not CDs?</h2>
<p>One suggestion is that sales have been spurred by <a href="https://www.bbc.co.uk/programmes/p057l522">baby boomers</a>, many of whom <a href="https://www.pewresearch.org/fact-tank/2020/11/09/the-pace-of-boomer-retirements-has-accelerated-in-the-past-year/">are now entering retirement</a> and are eager to tap into the nostalgia of their youth.</p>
<p>Data shows this theory is not true. </p>
<p>First, the <a href="https://www.billboard.com/charts/vinyl-albums">top-selling vinyl albums right now are current artists</a>, not classic bands. As of this writing, <a href="https://illustrationchronicles.com/jamie-hewlett-gorillaz-and-the-enduring-evolution-of-pop">Gorillaz, a band formed in the late 1990s</a>, was at the top of the vinyl charts. </p>
<p>Second, <a href="https://www.riaa.com/reports/2021-u-s-consumer-music-profile-musicwatch-inc/">data from the recording industry</a> shows the most likely person to buy a LP record is in Gen Z – people born from 1997 to 2012.</p>
<p>Another theory is that records are cheap. While that might have been true in the past, today’s vinyl records command a premium. “Cracker Island,” the Gorillaz album that is currently topping the vinyl sales charts, <a href="https://usstore.gorillaz.com/products/cracker-island-standard-vinyl">lists for almost $22</a> – twice the cost of the CD. Plus, subscribing to an online service like Spotify for 15 bucks a month gives you access to millions of tracks. </p>
<p>A third explanation for the resurgence is that <a href="https://www.sciencefocus.com/science/does-vinyl-really-sound-better/">people claim records have better sound quality</a> than digital audio files. Records are analog recordings that capture the entire sound wave. Digital files are sampled at periodic intervals, which means only part of the sound wave is captured.</p>
<p>In addition to sampling, many <a href="https://www.soundonsound.com/techniques/what-data-compression-does-your-music">streaming services and most stored audio files compress the sound</a> information of a recording. <a href="https://cs.stanford.edu/people/eroberts/courses/soco/projects/data-compression/lossy/mp3/concept.htm">Compression allows people</a> to put more songs on their phones and listen to streaming services without using up much bandwidth. However, <a href="https://electronics.sony.com/hi-res-audio-mp3-cd-sound-quality-comparison">compression eliminates some sounds</a>.</p>
<p>While LP records are not sampled or compressed, they do <a href="https://www.perfectvinylforever.com/faq">develop snap, crackle and popping sounds</a> after being played multiple times. Records also skip, which is something that doesn’t happen with digital music.</p>
<p>If you’re really going for quality, CDs are usually a superior digital format because <a href="https://www.gearpatrol.com/tech/audio/a731474/reasons-to-buy-cds/">the audio data is not compressed</a> and has much better fidelity than records. </p>
<p>Yet even though CDs are higher quality, <a href="https://www.riaa.com/u-s-sales-database/">CDs sales have been steadily falling</a> since their peak in 2000.</p>
<p><iframe id="wxmxo" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/wxmxo/1/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<h2>The ultimate status symbol</h2>
<p>In my view, the most likely reason for the resurgence of records was identified by an economist over a century ago. </p>
<p>In the late 1890s, <a href="https://www.econlib.org/library/Enc/bios/Veblen.html">Thorstein Veblen</a> looked at spending in society and wrote an influential book called “<a href="https://en.wikipedia.org/wiki/The_Theory_of_the_Leisure_Class">The Theory of the Leisure Class</a>.”</p>
<p>In it, he explained that people often buy items as a way to gain and convey status. One of Veblen’s key ideas is that not everything in life is purchased because it is easy, fun or high quality.</p>
<p>Sometimes harder, more time-consuming or exotic items offer more status.</p>
<p>A cake is a great example. Say you offer to bring a cake to a party. You can buy a bakery-made cake that will look perfect and take only a few minutes to purchase. Or you could bake one at home. Even if it’s delicious, it won’t look as nice and will take hours to make. </p>
<p>But if your friends are like mine, they’ll gush over the homemade cake and not mention the perfect store-bought one.</p>
<p>Buying and playing vinyl records is becoming a status symbol. </p>
<p>Today, playing music is effortless. Just shout your request at a smart speaker, like Siri or Alexa, or touch an app on your smartphone.</p>
<p>Playing a record on a turntable takes time and effort. Building your collection requires thoughtful deliberation and money. A record storage cube alongside an accompanying record player also makes for some nice living room decor.</p>
<p>And now I – the uncool professor that I am – find myself bemoaning the loss of all of those albums I sold years ago.</p><img src="https://counter.theconversation.com/content/201444/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jay L. Zagorsky does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Their popularity can’t be explained by the nostalgia of baby boomers or superior sound quality. So what’s going on?Jay L. Zagorsky, Clinical Associate Professor, Boston UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1948212022-11-23T19:12:20Z2022-11-23T19:12:20ZSpending too much money? Tempted by sales? These ways to ‘hack’ your psychology can help<figure><img src="https://images.theconversation.com/files/496419/original/file-20221121-22-v7a0j1.jpg?ixlib=rb-1.1.0&rect=210%2C983%2C6545%2C4227&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://unsplash.com/photos/To5wAJDt1IM">Jezael Melgoza/Unsplash</a></span></figcaption></figure><p>It’s late November, which means the holiday sales period has well and truly begun. If you haven’t already seen your spending go up, the possibility is looming.</p>
<p>And you probably have some concerns about spending your money wisely. Furthermore, shopping can be a harrowing experience, and our attitudes towards money are tied up in all kinds of feelings.</p>
<p>Based on psychology, here are three tips to improve the way you spend your hard-earned cash this holiday season. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-to-choose-the-right-christmas-gift-tips-from-psychological-research-149739">How to choose the right Christmas gift: tips from psychological research</a>
</strong>
</em>
</p>
<hr>
<h2>Before the purchase – patience is your friend</h2>
<p>One of the amazing features of the human mind is that we can mentally time travel: we can imagine what the future is going to <em>feel</em> like. Scientists call this “<a href="https://doi.org/10.1016/S0065-2601(03)01006-2">affective forecasting</a>”. </p>
<p>Thinking about a future trip – imagining the warm sun, the sand between your toes, finding yourself smiling – is an example of such mental time travel. </p>
<p>However, it turns out <a href="https://www.bauer.uh.edu/vpatrick/docs/Looking%20Through%20the%20Crystal%20Ball.pdf">we’re not very good at affective forecasting</a>. We get wrong not only the emotions we will experience, but also their intensity and duration. Lottery winners are a classic example – contrary to expectations, <a href="https://doi.org/10.1037//0022-3514.36.8.917">many are not happy</a>, or not happy for long.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/cant-resist-splurging-on-online-shopping-heres-why-138938">Can't resist splurging on online shopping? Here's why</a>
</strong>
</em>
</p>
<hr>
<p>More importantly, you can derive happiness from just <em>anticipating</em> future experiences. For example, one study measured the happiness of 974 people going on a trip compared with 556 people not going on a trip. As you might expect, the vacationers were relatively happier – <a href="https://doi.org/10.1007%2Fs11482-009-9091-9">but only before the trip</a>.</p>
<p>So, how can we take advantage of our capacity to mentally time travel?</p>
<p><strong>Tip #1: Pay now, consume later.</strong> These days, fuelled by the rise of “buy now, pay later” options, we get to consume what we want immediately. However, this instant gratification deprives us of a key source of happiness: anticipation. A better strategy is to commit to buy something and then wait a little before actually consuming it. </p>
<h2>At the point of purchase – notice you’re paying</h2>
<p>An inevitability of every purchase is spending money. This represents a cost, both in terms of the monetary value but also the opportunity to buy other things.</p>
<p>Costs are a form of loss, and <a href="https://doi.org/10.1037/0003-066X.39.4.341">we don’t like losing things</a>. For that reason, it psychologically hurts to spend money. Scientists call this the “<a href="https://doi.org/10.1287/mksc.17.1.4">pain of paying</a>”. </p>
<p>According to <a href="https://doi.org/10.1111/1467-8721.00151">one theory of shopping</a>, we decide to buy after making a mental calculation: is the anticipated pleasure of consuming higher than the anticipated pain of buying?</p>
<p><a href="https://doi.org/10.1016%2Fj.neuron.2006.11.010">This calculus</a> is even represented in the brain. For example, <a href="http://dx.doi.org/10.2139/ssrn.2901808">one study</a> looking at people’s brains with fMRI while they purchased food found neural activity in areas linked to higher-order, affective pain processing, which correlated with how high the price was. </p>
<p>How did you pay for your last meal? Did you have to dig into your wallet or purse trying to extract the appropriate combination of notes and coins? Maybe you simply pulled out a plastic card and swiped it on the reader? Or perhaps you absentmindedly touched your smartphone to the machine. </p>
<figure class="align-center ">
<img alt="A person holding up their smartphone to a contactless payment system" src="https://images.theconversation.com/files/496420/original/file-20221121-14-8dpx7o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/496420/original/file-20221121-14-8dpx7o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/496420/original/file-20221121-14-8dpx7o.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/496420/original/file-20221121-14-8dpx7o.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/496420/original/file-20221121-14-8dpx7o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/496420/original/file-20221121-14-8dpx7o.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/496420/original/file-20221121-14-8dpx7o.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">‘Tapping’ with your phone greatly reduces the pain of paying.</span>
<span class="attribution"><a class="source" href="https://unsplash.com/photos/k24rOBJ2D_0">naipo.de/Unsplash</a></span>
</figcaption>
</figure>
<p>It turns out your method of payment changes how much pain you feel. In <a href="https://doi.org/10.1093/jcr/ucv056">one study</a>, researchers asked some university employees if they would like to buy a mug at a discounted price. Half were only allowed to pay in cash, whereas the other half had to use a debit or credit card.</p>
<p>Those who paid in cash self-reported more pain of paying. So, how can you use this to your advantage?</p>
<p><strong>Tip #2: Ramp up the pain.</strong> If you’re worried about overspending this holiday period, ramp up the pain of paying. You can do this by using cash or receiving a notification each time money leaves your account.</p>
<h2>After the purchase – stop chasing rainbows</h2>
<p>A fundamental feature of human beings is that we are adaptive – we easily get used to the new normal. This applies to our purchases, too. Scientists call it “<a href="https://www.cmu.edu/dietrich/sds/docs/loewenstein/HedonicAdaptation.pdf">hedonic adaptation</a>”: over time, consumption of the same thing brings decreasing happiness.</p>
<p>Remember the day you got your smartphone? You may have felt joy as you caressed the smooth aluminium back and watched light glint off the unblemished glass. Now look at your phone. What happened to the joy?</p>
<p>It’s normal to experience hedonic adaptation. However, one problem is that we don’t anticipate it.</p>
<p>Remember affective forecasting? Since <a href="https://doi.org/10.2307/3150499">satisfaction is a function of expectations relative to performance</a>, when we fail to adjust our expectations in light of the inevitable hedonic adaptation, we end up dissatisfied.</p>
<p>The second problem with hedonic adaptation is that the obvious solution appears to be buying something new. Maybe you need a new smartphone to replace your slightly scratched-up old one? If this is your thinking, you’ve just hopped onto the <a href="https://doi.org/10.1037/0003-066X.61.4.305">hedonic treadmill</a>.</p>
<p>Now the only way to maintain your happiness is to spend more and more money to get better and better versions of everything. So, how can you get off this treadmill?</p>
<p><strong>Tip #3: Buy experiences, not things</strong>. It turns out <a href="https://doi.org/10.1093/jcr/ucaa047">people end up happier when they buy experiences rather than things</a>. For example, <a href="https://doi.org/10.1007/s12232-010-0093-6">a study</a> that tracked how older adults spent their money found that only one category of spending was related to happiness: leisure purchases, such as going on trips, seeing a movie at the cinema, and cheering at sporting events.</p>
<p>One reason for this is that <a href="https://doi.org/10.1086/597049">we adapt to purchases of experiences more slowly</a> than purchases of material things. </p>
<p>So, the next time you’re tossing up between buying tickets to a festival or getting the latest gadget, pick up your scratched-up smartphone and pre-purchase some festival tickets for you and your friends.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-to-know-if-your-online-shopping-habit-is-a-problem-and-what-to-do-if-it-is-143969">How to know if your online shopping habit is a problem — and what to do if it is</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/194821/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Adrian R. Camilleri does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Our relationship with money is complex – but when it comes time to indulge or resist the sales, a few tricks can help your spending.Adrian R. Camilleri, Senior Lecturer in Marketing, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1713442022-08-30T12:17:29Z2022-08-30T12:17:29ZHow Mary Kay contributed to feminism – even though she loathed feminists<figure><img src="https://images.theconversation.com/files/480473/original/file-20220822-54947-jktayt.jpg?ixlib=rb-1.1.0&rect=0%2C8%2C2789%2C1996&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Mary Kay Ash's legendary love for the color pink symbolized her determination to be a business success by "thinking like a woman."</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/beautys-big-business-mary-kay-ash-the-originator-and-news-photo/502259765?adppopup=true">Colin McConnell /Toronto Star via Getty Images</a></span></figcaption></figure><p>In 1963, the same year American businesswoman Mary Kay Ash started her cosmetics company, publisher W.W. Norton <a href="https://www.smithsonianmag.com/smithsonian-institution/powerful-complicated-legacy-betty-friedans-feminine-mystique-180976931/">released “The Feminine Mystique</a> – the book that has since been widely credited with launching the contemporary women’s liberation movement.</p>
<p>Ash loathed the term "feminist” and disliked the movement. In a 1983 Dallas Morning News interview, she dismissed “that foolishness feminists started in the ‘60s” of “trying to act just like a man” by cutting their hair short or lowering their voices.</p>
<p>Yet Ash, <a href="https://www.nytimes.com/2001/11/23/business/mary-kay-ash-who-built-a-cosmetics-empire-and-adored-pink-is-dead-at-83.html">who died in 2001</a>, successfully defied her era’s female gender norms. She turned a few thousand dollars into a multibillion-dollar cosmetics empire and led it for decades. Her sales force grew from fewer than 10 women to tens of thousands.</p>
<p>While researching a book on Ash’s life and work, I’ve learned that many of the Mary Kay saleswomen were comfortable with their era’s vision of femininity and motherhood. Ash’s <a href="https://www.texasmonthly.com/news-politics/the-hot-pink-empire-of-mary-kay-ash/">company motto of “God First, Family Second, Career Third”</a> put them at ease. </p>
<p>American women today owe gratitude to the women’s movement of the 1960s for making issues like equal pay for equal work and sharing household responsibilities part of the national conversation – but also to a Dallas entrepreneur who reveled in the feminine mystique.</p>
<h2>From underpaid saleswoman to CEO</h2>
<p>In 1963, the year Ash founded “Beauty by Mary Kay” in a small Dallas storefront, barely <a href="https://fred.stlouisfed.org/series/LNS11300002">a third of American women were in the workforce</a>. Ash was one of them. She had peddled children’s encyclopedias door to door, and conducted “house parties” - home demonstrations of products that catered to housewives – <a href="https://www.nytimes.com/2001/11/23/business/mary-kay-ash-who-built-a-cosmetics-empire-and-adored-pink-is-dead-at-83.html">with Stanley Home Goods</a> and other companies. </p>
<p>Ash consistently earned lower wages than her male counterparts, who also passed her by for promotions. When she protested, one common response was to deride her for “thinking like a woman.” Another was that men needed more money because they had families to support. </p>
<p>“I had a family to support too!” <a href="https://www.amazon.com/Mary-Kay-Ash-1981-10-01/dp/B01K175DX0">recalled Ash, a single mother, in</a> her 1981 memoir. So she quit to build a company where there would be no wage gap or male bosses, and women would be rewarded for thinking like women – all while embracing the vision of traditional gender roles that the feminist movement was trying to overturn. </p>
<p>By 1969, the company was earning US$6.3 million in net sales, according to The New York Times. And an article in the Irving Daily News, a Texas newspaper, put the sales force at around 4,000 women from 15 different states.</p>
<p>In 1976, Mary Kay Inc. became the <a href="https://npg.si.edu/exh/journal/ash.htm">first woman-founded and -led company listed</a> on the New York Stock Exchange. </p>
<p>In 1979, glowing coverage on “<a href="https://youtu.be/nrWz_MzKAMk">60 Minutes</a>” prompted nearly 100,000 more women to sign up. The company was grossing over <a href="https://youtu.be/nrWz_MzKAMk">$100 million annually</a> and had a <a href="http://www.marykaymuseum.com/highlight_1970.aspx">global reach</a>, and Ash was named one of the year’s top corporate women in America by <a href="http://3vcm07307bnr2jg8679q77x8-wpengine.netdna-ssl.com/wp-content/uploads/2012/01/Mary_KayCosmeticsInc_Corp_PlanningInAnEraofUncertainty.pdf">Business Week</a> magazine.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/nrWz_MzKAMk?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">The CBS news show “60 Minutes” aired a glowing profile of Mary Kay Ash’s cosmetic company in 1979.</span></figcaption>
</figure>
<p>In 1985 Ash and her son <a href="https://www.nytimes.com/2001/11/23/business/mary-kay-ash-who-built-a-cosmetics-empire-and-adored-pink-is-dead-at-83.html">led a $450 millon deal</a> to buy the company back into private family hands. As of 2021, the company <a href="https://nypost.com/2021/10/02/how-mary-kays-founder-went-from-single-mom-to-billion-dollar-beauty-queen/">reportedly has $3.5 billion in annual revenues</a>. </p>
<h2>The Mary Kay mystique</h2>
<p>Ash rejected feminism but sought to build women’s confidence – something absent in the average housewife’s life, according to “The Feminine Mystique” – as well as their income.</p>
<p>“Here’s a woman who’s never had any praise at all for anything she’s ever done,” Ash <a href="https://www.amazon.com/Mary-Kay-Ash-1981-10-01/dp/B01K175DX0">said in her best-selling memoir</a>. “Maybe the only applause she’s ever had was when she graduated from high school. So we praise her for everything good that she does.”</p>
<p>Based on the interviews I’m doing for my research, this approach worked. </p>
<p>Esther Andrews, a housewife, told me that before she became a Mary Kay saleswoman in 1967, “nobody had ever said that I could be great at anything.” Andrews, who raised three children with her Mary Kay earnings after her husband died, was among the first winners of a pink Cadillac – a company prize for top sellers. The car was both a symbol of her success and a means of mobility few housewives enjoyed at the time. </p>
<p>Andrews’ story reflects that of many I’ve uncovered. From a former waitress and single mom in New Jersey who was able to raise her daughter and purchase her own home to a former housewife in Ohio who has more diamond rings than fingers and funds her family’s European vacations, Mary Kay has changed women’s lives. </p>
<p>Both of these women fought back tears as they shared their career accomplishments with me. Both have been in the company for more than 30 years. </p>
<figure class="align-center ">
<img alt="Salespersons from Anhui Province, China, pose for pictures in front of a pink sedan, an award for the best sales team, during the Mary Kay China Leadership Conference on February 20, 2011, in Xiamen, Fujian Province, China." src="https://images.theconversation.com/files/481609/original/file-20220829-27-801kvu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/481609/original/file-20220829-27-801kvu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/481609/original/file-20220829-27-801kvu.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/481609/original/file-20220829-27-801kvu.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/481609/original/file-20220829-27-801kvu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/481609/original/file-20220829-27-801kvu.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/481609/original/file-20220829-27-801kvu.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The Mary Kay company continues to award top saleswomen with new cars in its founder’s favorite color.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/salespersons-from-anhui-province-of-china-pose-for-pictures-news-photo/109325814?adppopup=true">China Photos/GettyImages AsiaPac via Getty Images</a></span>
</figcaption>
</figure>
<p>In her book “In Pink: The Personal Story of a Mary Kay Pioneer Who Made History Shaping a New Path to Success for Women,” homemaker and early Mary Kay recruit <a href="https://www.amazon.com/Pink-Personal-Pioneer-History-Shaping/dp/0985372516">Doretha Dingler remarked that</a> “much more than raising our family income, that kind of earning raised my consciousness” – language echoing that of the era’s feminists.</p>
<h2>Opportunities for women of color</h2>
<p>It wasn’t just middle-class white women who found success in Mary Kay. </p>
<p>In 1975, <a href="https://books.google.com/books?id=9lwEAAAAMBAJ&lpg=PA183&dq=ruell%20cone%20mary%20kay&pg=PA183#v=onepage&q=ruell%20cone%20mary%20kay&f=false">Ruell Cone</a>, a Black woman from Atlanta, was the company’s highest-earning saleswoman. She was honored in person by Ash herself before tens of thousands of saleswomen at the company’s annual seminar. </p>
<p>In 1979, Gerri Nicholson told The Record newspaper of Hackensack, N.J., that while she had “a lot of hang-ups” from growing up as an African American in the South, working for Mary Kay “substantially increased my family income” and gave her “a feeling of self-worth.” At that point Nicholson had worked her way up from saleswoman to sales manager, and would go on to become Mary Kay’s <a href="https://www.warrenrecord.com/article_a63211f2-30fa-11ec-9c07-cb0095c02517.html">first Black national sales director</a>.</p>
<p>By 1985, Savvy magazine reported that Mary Kay Inc. could claim more Latina and Black women earning annual commissions of over $50,000 – the equivalent of $137,000 in 2022 – than any other corporation worldwide. </p>
<p>Ash’s elevation of “thinking like a woman” and the company’s acceptance of Black and Latina saleswomen are also forerunners of feminism’s “third wave” in the 1990s. In this era, younger feminists shifted the movement’s focus from equal rights to diversity, embracing gender differences and celebrating femininity in its various forms.</p>
<h2>A ‘pink pyramid scheme’?</h2>
<p>Along with these success stories, the company has faced accusations of exploiting more women than it enriches. A 2012 article in Harper’s Magazine, “The Pink Pyramid Scheme,” <a href="https://harpers.org/archive/2012/08/the-pink-pyramid-scheme/">pointed at unrealized promises of success</a>, saleswomen going into debt to purchase product inventory, and high turnover rates.</p>
<p>I believe these stories are a part of any accurate telling of Mary Kay history. </p>
<p>However, based on my research, a substantial number of the company’s “beauty consultants” say they found camaraderie, <a href="https://hbr.org/2018/08/why-women-stay-out-of-the-spotlight-at-work">recognition</a> and <a href="https://www.smithsonianmag.com/smart-news/after-two-years-job-womens-confidence-plummets-180955373/">confidence</a> working for Mary Kay, and a female role model in Mary Kay Ash.</p>
<p>These are things working women today <a href="https://doi.org/10.5465/ambpp.2006.22898277">still find elusive</a>.</p><img src="https://counter.theconversation.com/content/171344/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Cassandra L. Yacovazzi does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Ash derided women’s liberation as “that foolishness” – but her success story is very feminist.Cassandra L. Yacovazzi, Assistant Professor of History, University of South FloridaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1628042021-07-19T18:31:19Z2021-07-19T18:31:19ZWhy livestreamers should sell their products with a poker face – not a smile<figure><img src="https://images.theconversation.com/files/410234/original/file-20210707-27-6vm2l7.jpg?ixlib=rb-1.1.0&rect=105%2C0%2C1692%2C956&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">That smile may hurt sales. </span> <span class="attribution"><span class="source">Screenshot</span>, <a class="license" href="http://creativecommons.org/licenses/by-nc-sa/4.0/">CC BY-NC-SA</a></span></figcaption></figure><p><em>The <a href="https://theconversation.com/us/topics/research-brief-83231">Research Brief</a> is a short take about interesting academic work.</em></p>
<h2>The big idea</h2>
<p>Smiling or exhibiting other positive emotional displays while selling a product over live video – known as livestreaming – makes people less likely to buy it, we found in <a href="https://www.doi.org/10.1177/00222429211013042">new research published in the Journal of Marketing</a>.</p>
<p>Livestreaming through channels such as Amazon Live and QVC <a href="https://www.forbes.com/sites/forbesagencycouncil/2021/02/04/going-live-online-the-state-of-live-streaming-and-the-opportunities-for-brands/?sh=359cedb34b97">is an increasingly popular way</a> to sell goods online. In segments that usually last somewhere between 5 and 10 minutes, someone pitches a product. Viewers can then readily buy it by clicking on a link.</p>
<p>We analyzed 99,451 sales pitches on a livestream retailing platform and matched them with actual sales transactions. In terms of duration, that is the equivalent of over 2 million 30-second television advertisements. </p>
<p>To determine the emotional expression of the salesperson, we used two deep learning models: a face detection model and an emotion classification model. The face detection model discovers the presence or absence of a face in a frame of a video stream. The emotions classifier then determines the probability that a face is exhibiting any of the <a href="https://online.uwa.edu/infographics/basic-emotions/">six basic human emotions</a>: happiness, sadness, surprise, anger, fear or disgust. For example, smiling signals a high probability of happiness, while a scowling expression usually points toward anger. </p>
<p>We wanted to see the impact of emotions expressed at different times in the sales pitch so we computed probabilities for each emotion for all 62 million image frames in our dataset. We then combined these probabilities with other possible variables that might drive sales – such as price and product characteristics – to isolate the effect of emotion. </p>
<p>We found that, perhaps unsurprisingly, when salespeople convey more negative emotions – such as anger and disgust – the volume of sales went down. But we also found that a similar thing happened when the sales pitch involved high levels of positive emotional displays, such as happiness or surprise. </p>
<p>A likely explanation, based on prior research, is that <a href="https://www.doi.org/10.1509/jmkg.70.3.058?journalCode=jmxa">smiling can be off-putting</a> because it <a href="https://doi.org/10.1016/j.obhdp.2017.10.002">lacks authenticity</a> and can reduce trust in the seller. A seller’s happiness may be taken as a sign that the seller is gaining in the negotiation at the customer’s expense.</p>
<p>We found that the negative effects on sales are the strongest when people express emotion in the middle rather than at the beginning or the end of sales pitches. A potential reason for this finding is that viewers might expect more emotion at the beginning of the pitch, when a salesperson is introducing a product, and at the end, when she’s closing the sale. The middle is typically when the salesperson offers more detail about the product, and it’s likely viewers are turned off by emotion at this point in the pitch. </p>
<h2>Why it matters</h2>
<p>Business majors and future salespeople are typically taught to <a href="https://www.jstor.org/stable/3069445">provide service with a smile</a>. Service providers such as bank tellers and waiters are encouraged to smile in order to get good customer outcomes. </p>
<p>And even in our data, salespeople were smiling for almost a quarter of the time. Our research challenges this notion and replaces it with a new maxim: Sell with a straight face. </p>
<p>To our knowledge, this marketing study is the first to assess the sales impact of the presence of a salesperson’s face and emotional displays.</p>
<h2>What still isn’t known</h2>
<p>We don’t know if our findings translate to in-person sales. </p>
<p>The main reason why this is unknown is because it is very hard to observe sales interactions in the field. For example, we cannot go and record how salespeople at a car dealership sell cars on a large scale. </p>
<p>There is some smaller-scale, in-person <a href="https://www.doi.org/10.1177/0022242921999603">evidence based on surveys</a> that appearing calm – perhaps with a straight face – builds rapport, which in turn drives sales performance outcomes. It remains to be seen if these findings translate to a natural field experiment.</p>
<p>[<em>You’re smart and curious about the world. So are The Conversation’s authors and editors.</em> <a href="https://theconversation.com/us/newsletters/the-daily-3?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=youresmart">You can read us daily by subscribing to our newsletter</a>.]</p><img src="https://counter.theconversation.com/content/162804/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>A new study found that sales went down when salespeople conveyed emotion during their pitch – including expressions of happiness.Michel Ballings, Assistant Professor of Business Analytics, University of TennesseeNeeraj Bharadwaj, Professor of Marketing, University of TennesseePrasad Naik, Professor of Marketing, University of California, DavisLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1287252019-12-27T10:43:14Z2019-12-27T10:43:14ZHow sales shopping is killing the planet<p>Christmas has passed and New Year is just around the corner. And the sales continue. Things started six weeks before Christmas with Singles Day, which began in China and is now <a href="https://www.techradar.com/news/singles-day-officially-bigger-than-black-friday-and-cyber-monday-combined">the world’s biggest shopping day</a>. This was followed by <a href="https://theconversation.com/why-black-friday-is-the-cause-of-so-much-consumer-chaos-51233">Black Friday</a>, Cyber Monday sale, the pre-Christmas sales and now the period of post-Christmas or New Year sales. Soon it will be time for Valentine’s Day sales, Easter sales and so on. The sale events don’t seem to pause but instead persevere throughout the year and in various forms.</p>
<p>For retailers, these sales are a great opportunity to liquidate unsold or off-season stock into cash, make room for new stock and cross-sell existing stock via impulse or unplanned buying. For consumers, sales provide one or more “legit reasons” for spending and <a href="https://theconversation.com/chinas-singles-day-retail-phenomenon-will-blow-black-friday-out-the-water-85952">gifting</a>, either to oneself, others or a bit of both. Indulgent spending is expected and even encouraged when discounts or bargains are widely available to be snatched up. </p>
<p>Putting their benefits aside, sales also come with numerous costs. Emotionally, they may drive consumers to spend money they do not have and then feel <a href="https://www.finder.com/uk/black-friday-statistics">regret</a> or guilt afterwards. Financially, they may entrap shoppers into (more) financial debt because of the faux sense of “entitled” indulgence or spending when there is a sale on. Psychologically, it may exacerbate <a href="https://www.thetimes.co.uk/article/experts-claim-addiction-to-shopping-is-a-mental-illness-8zptsggjt#">compulsive buying disorder</a>, also known as “oniomania”, by legitimising gifting and spending. </p>
<p>All this adds up to some serious environmental costs. Marketing academics like me often assess how people act through certain “behavioural lenses”, and I think there are two that are applicable here:</p>
<h2>Throwaway culture</h2>
<p>The <em>throwaway lens</em>, particularly visible in <a href="https://publications.parliament.uk/pa/cm201719/cmselect/cmenvaud/1952/report-summary.html">fashion</a>, suggests that the more we buy, the more we throw away. While the correlation is yet to established empirically, it is logical to think that sales promote more buying and in turn mean there is more to throw away. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/why-you-should-stop-buying-new-clothes-123881">Why you should stop buying new clothes</a>
</strong>
</em>
</p>
<hr>
<p>This proposition can be supported by the phenomenon of dwindling living space. In the UK, bedrooms are shrinking and on average living rooms in new build homes are <a href="https://www.theguardian.com/business/2018/apr/08/uk-living-rooms-have-shrunk-by-a-third-survey-finds">a third smaller than in the 1970s</a>. But despite this, people are still buying a lot more stuff than in the 1970s.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/307428/original/file-20191217-58353-19a8bkb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/307428/original/file-20191217-58353-19a8bkb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/307428/original/file-20191217-58353-19a8bkb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/307428/original/file-20191217-58353-19a8bkb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/307428/original/file-20191217-58353-19a8bkb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/307428/original/file-20191217-58353-19a8bkb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/307428/original/file-20191217-58353-19a8bkb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/307428/original/file-20191217-58353-19a8bkb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">What happens to clothes you don’t need.</span>
<span class="attribution"><span class="source">Venture / shutterstock</span></span>
</figcaption>
</figure>
<p>To make room for acquired sales items, people are likely to get rid of “pre-loved” items and harm the environment. For example, a <a href="https://publications.parliament.uk/pa/cm201719/cmselect/cmenvaud/1952/report-summary.html">UK parliament report</a> in early 2019 found that in the country “around 300,000 tonnes of textile waste ends up in household black bins every year”, which is about 5kg per person. This is then sent to landfill or incinerators. The report notes that “less than 1%” of the material used to produce clothing is recycled. Our throwaway behaviour costs the planet. </p>
<h2>Sales mean more products are returned</h2>
<p>The <em>product returns lens</em> suggests a possible correlation between sales and the rate of product returns. Sales such as <a href="https://fashionunited.uk/news/retail/the-problem-with-black-friday-returns-and-how-ai-could-help/2018112340136">Black Friday</a> have become digitally-oriented, with around three quarters of purchases being made online. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-to-make-your-online-shopping-more-environmentally-friendly-123117">How to make your online shopping more environmentally friendly</a>
</strong>
</em>
</p>
<hr>
<p>Online returns can involve a number of <a href="https://ecr-shrink-group.com/medias/webinar/webinar-slides.pdf">environmentally damaging activities</a>. Consumers sending items back, and couriers collecting and redistributing them, all means extra driving and thus traffic congestion and <a href="https://www.forbes.com/sites/gulnazkhusainova/2018/11/13/back-to-the-burner-black-friday-is-national-throw-away-day/#7ce683596919">carbon emissions</a>. Cleaning, repairing and/or repackaging returned items mean consuming more natural resources and potentially using more materials that contain fossil fuels or palm oils. Processing, transporting and landfill of single-use or non-recyclable packaging used in returns mean more land use and a greater carbon footprint. </p>
<p>All of these activities are usually “invisible” to us, the consumer, and yet can have dire consequences for the environment. For instance, <a href="https://www.voguebusiness.com/consumers/returns-rising-costs-retail-environmental">Vogue Business</a> reported that in the US returns alone produce around 2.27 million tonnes of landfill waste and 15 million tonnes of carbon emissions each year, “equivalent to the amount of trash generated by 5 million people in a year”. </p>
<p>I don’t want to undermine the commercial value of sales nor the consumption joy they can bring when done wisely. However I cannot help wondering whether these sales can strike a balance between commercial, consumption and green value. </p>
<p>As we increasingly witness and experience the impacts of <a href="https://theconversation.com/climate-change-seeing-the-planet-break-down-is-depressing-heres-how-to-turn-your-pain-into-action-114407">climate change</a>, we do need to be (more) wary of our consumerist behaviours and subsequent environmental costs. A little thought for the environment might be just the way to enrich the shopping joy, or mitigate the spending guilt, experienced in sales events? Let’s <a href="https://theconversation.com/your-serious-pursuit-of-happiness-is-key-to-protecting-the-planet-69956">spend (more) positively</a> to protect our planet.</p><img src="https://counter.theconversation.com/content/128725/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Kokho Jason Sit does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The more we buy, the more we throw away.Kokho Jason Sit, Senior Lecturer in Marketing, University of PortsmouthLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1239052019-10-25T12:31:29Z2019-10-25T12:31:29ZNot all candy is candy – at least for tax purposes<figure><img src="https://images.theconversation.com/files/296035/original/file-20191008-128686-3uwk8f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A convenience store worker hands out candy to trick-or-treaters on Halloween.</span> <span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Halloween-New-York/eaed15e3d36e4f28878a4b2c17355787/2/0">AP Photo/Wong Maye-E</a></span></figcaption></figure><p>Halloween shoppers have many delicious decisions to make before trick-or-treaters show up at their doors. And in many states, those choices will change how much tax they pay.</p>
<p>In Illinois, for example, locals pay a higher state sales tax rate – <a href="http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=582&ChapterID=8">6.25% versus 1%</a> – on Reese’s, gummi worms and Hershey’s milk chocolate bars than on Twix, Twizzlers and Hershey’s Cookies ‘n’ Creme bars.</p>
<p>Trying to distinguish between these two groups may be devilishly hard for shoppers, but to the <a href="https://www2.illinois.gov/rev/research/taxinformation/sales/Pages/rot.aspx">Illinois Department of Revenue</a>, the difference is simple. The first three treats are candy, and <a href="https://www.illinoispolicy.org/candy-crush-illinois-slaps-sales-tax-on-snickers-but-not-twix/">the second three are not</a>.</p>
<p>I’m a <a href="https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=1997162">taxation expert</a>, and I have studied many aspects of state sales taxes. I have found that sales taxes can affect taxpayers, retailers and states in <a href="https://scholarship.richmond.edu/law-faculty-publications/1436/">unexpected ways</a>. Halloween offers a perfect window into the surprising difficulty of getting sales taxes just right.</p>
<h2>Sales tax</h2>
<p>States <a href="https://taxfoundation.org/state-sales-tax-reliance-2019/">rely heavily on sales taxes</a> for revenue.</p>
<p>Nationwide, sales taxes represent <a href="https://www.census.gov/content/dam/Census/library/publications/2015/econ/g14-stc.pdf">about a third of state revenue intakes</a>. From the states’ perspectives, there is a lot to like about sales taxes.</p>
<p>States have a great deal of autonomy in crafting their sales tax codes, and <a href="https://scholarship.law.berkeley.edu/cgi/viewcontent.cgi?article=2323&context=facpubs">taxpayers seem not to pay all that much attention</a> to sales taxes, making sales taxes politically appealing sources of revenue.</p>
<p>Perhaps most importantly, <a href="https://www.gao.gov/assets/690/688437.pdf">vendors can be relied on to collect sales taxes</a>, <a href="https://perma.cc/UHQ4-TXK7">streamlining enforcement</a> of the taxes.</p>
<p>However, sales taxes do raise concerns. Namely, they burden low-income taxpayers <a href="https://itep.org/wp-content/uploads/whopaysreport.pdf">to a greater degree</a> than high-income taxpayers, since low-income taxpayers spend a higher percentage of their disposable income on the taxes than high-income taxpayers.</p>
<p>For example, US$30 or so of sales tax on $500 of groceries strains the budget of a couple with $2,000 of monthly income more than the budget of a couple with $12,000 of monthly income. The <a href="https://fns-prod.azureedge.net/sites/default/files/media/file/CostofFoodAug2019.pdf">estimated monthly grocery bill</a> for a young couple on a low-cost plan, meaning they <a href="https://www.fns.usda.gov/cnpp/usda-food-plans-cost-food-reports-monthly-reports">spend less on groceries than an average couple</a>, is $500.</p>
<p>People must buy food to survive, making it harder for low-income taxpayers to change their purchasing habits to avoid the sales tax burden. To address this concern, many state legislatures have chosen to reduce the sales tax rate that applies to sales of certain necessities such as groceries and medical supplies.</p>
<p><a href="http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=582&ChapterID=8">Illinois</a>, for instance, lowers its sales tax rate from 6.25% to 1% for grocery purchases. Other states, like <a href="https://www.cdtfa.ca.gov/lawguides/vol1/sutl/6359.html">California</a>, exempt groceries from their sales taxes all together.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/296038/original/file-20191008-128668-1a5mtks.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/296038/original/file-20191008-128668-1a5mtks.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/296038/original/file-20191008-128668-1a5mtks.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/296038/original/file-20191008-128668-1a5mtks.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/296038/original/file-20191008-128668-1a5mtks.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/296038/original/file-20191008-128668-1a5mtks.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/296038/original/file-20191008-128668-1a5mtks.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Some of this candy, well, isn’t.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/alameda-ca-november-17-2016-many-517744681?src=zsYYrqyAtEvkfdtXPNte4Q-1-0">Sheila Fitzgerald/Shutterstock.com</a></span>
</figcaption>
</figure>
<h2>What is candy?</h2>
<p>Now, states like Illinois must figure out where to draw the line.</p>
<p>If “groceries” are <a href="https://www.cbpp.org/research/state-budget-and-tax/which-states-tax-the-sale-of-food-for-home-consumption-in-2017">eligible for lower sales tax rates</a>, the states must define what foods qualify. Some foods, like eggs, milk and bread, are easy to categorize as groceries. Others, like <a href="https://taxfoundation.org/how-high-are-taxes-distilled-spirits-your-state-2016/">alcohol</a> and <a href="https://taxfoundation.org/meals-taxes-major-us-cities-0/">prepared meals</a>, are easy to exclude – and often are subject to extra taxes beyond basic sales taxes.</p>
<p>But how does one deal with all the food in between those groups? For instance, is meat a necessity? If so, are steaks necessities?</p>
<p>One approach to this sorting problem is to list out in granular detail each food that counts as a grocery item, leaving the remaining foods to be taxed at the higher rate. Such a list would provide perfectly targeted tax relief, but would demand constant and costly updating as new products make their way into grocery stores.</p>
<p>Instead of a granular method, states often take a more generalized approach to drawing the line. Under that approach, groceries are defined as food for consumption off-premises – which essentially means the food is purchased to take home, not to be eaten on the spot – and everything else is not eligible for reduced sales tax rates.</p>
<p>Many states, like Illinois, go further and provide that certain categories of food, such as candy, also do not qualify as groceries.</p>
<p>These more generalized approaches sacrifice accuracy for ease of administration but ultimately demand further line drawing. When is food purchased for home consumption? What is candy?</p>
<p>States like New York sometimes look to preparation methods to determine when food is purchased for consumption at home or on the premises. Have your bagel from the local deli toasted, and the New York Department of Taxation and Finance concludes you will be dining in. Avoid the toaster, and you will be <a href="https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/food_sold_by_food_stores.htm">taking it to go</a> and paying less sales tax.</p>
<p>Illinois defines candy as sweets and confectioneries, <a href="http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=582&ChapterID=8">but not if flour is a listed ingredient</a>.</p>
<p>Therefore, in some states that cookie crunch in your Twix is doubly satisfying. It feeds your sweet tooth while also getting you a sales tax break. </p>
<p>And, yes, Twizzlers and Hershey’s Cookies and Cream both have flour in them, too.</p>
<p>[ <em>You respect facts and expertise. So do The Conversation’s authors and editors.</em> <a href="https://theconversation.com/us/newsletters?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=yourespect">You can read us daily by subscribing to our newsletter</a>. ]</p><img src="https://counter.theconversation.com/content/123905/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Hayes Holderness does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Which candies count as candy in the eyes of the tax law? The answer often depends on one ingredient.Hayes Holderness, Associate Professor of Law, University of RichmondLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1086802018-12-18T13:09:22Z2018-12-18T13:09:22ZHow to avoid overspending: uncover the psychology behind why people buy<figure><img src="https://images.theconversation.com/files/251149/original/file-20181218-27767-1uekb8y.jpg?ixlib=rb-1.1.0&rect=39%2C26%2C8635%2C5748&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">What have I done?</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/closeup-woman-shopping-bags-front-on-357891446">Shutterstock.</a></span></figcaption></figure><p>Between <a href="https://ideas.repec.org/a/eee/joreco/v21y2014i2p86-97.html">40% and 80%</a> of purchases are impulse buys. Marketers often get blamed for this, but while marketing tactics may be <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1744-6570.2010.01187_2.x">cynical, manipulative, and even deceptive</a>, shoppers are generally wise to their ways. </p>
<p>Of greater concern, is the fact that up to <a href="https://academic.oup.com/joc/article-abstract/64/5/915/4086043?redirectedFrom=fulltext">95% of our daily decisions</a> are potentially determined by <a href="https://www.sciencedirect.com/science/article/abs/pii/S105774080570108X">impulsive, unconscious processes</a>. All too often, consumers are ignorant of the <a href="http://psycnet.apa.org/record/1992-98649-000">social influences</a> and <a href="https://www.researchgate.net/publication/288902202_Social_psychology_and_consumer_psychology_An_unexplored_interface">psychological states</a> that make them vulnerable shoppers. In fact, most people entertain a costly <a href="http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.552.7516&rep=rep1&type=pdf">illusion of invulnerability</a> and consider themselves especially shrewd shoppers. </p>
<p>You can avoid spending too much by becoming more mindful of the factors that influence your shopping behaviours. Here are six factors which could cause you to overspend, along with some tips about how to counteract them. </p>
<h2>1. Social pressure</h2>
<p>Human beings are very susceptible to social pressures. The cooperative and competitive behaviours, which have ensured our survival as a species, also nudge us <a href="https://youtu.be/_qHYmx7qPes">to spend more than we need</a>.</p>
<p>For example, the social norm of reciprocity obligates us to exchange gifts and good deeds at Christmas.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/2H8fXLGPrKk?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<p>Competition also fuels consumption: sales reinforce a sense of scarcity, and use time constraints to provoke a fear of missing out among shoppers – even when they’re buying online. Flash sales – such as Black Friday – create a herd mentality, which can provoke panic buying, hysteria <a href="http://blackfridaydeathcount.com/">or worse</a>. Being aware of these pressures will minimise their effects and allow you to maintain a sense of perspective. </p>
<h2>2. More abstract money</h2>
<p>The concept of money is a shared myth, powered by the human imagination. Our <a href="https://www.harpercollins.com/9780062316097/sapiens/">imagination has been instrumental</a> in the rapid development of the species, allowing people to swap pieces of paper and bits of metal for things they want. From notes and coins, to debit and credit cards, and most recently phones and <a href="https://www.fitbit.com/uk/fitbit-pay">Fitbits</a>, the human imagination accommodates increasingly abstract forms of money. This is dangerous.</p>
<figure class="align-right ">
<img alt="" src="https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=603&fit=crop&dpr=1 600w, https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=603&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=603&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=758&fit=crop&dpr=1 754w, https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=758&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/251139/original/file-20181218-27776-1qlrrcx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=758&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Quick and painless – until you check your balance.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/mobile-payment-online-shopping-concept-742212562?src=aytA6RYMiN3S00bdAacMzA-1-2">Shutterstock.</a></span>
</figcaption>
</figure>
<p>These new forms of money ease the “<a href="https://youtu.be/PCujWv7Mc8o">pain of paying</a>”, reducing the level of guilt we feel when parting with money. It temporarily hides the financial repercussions of our purchases (the lower bank balance or lighter wallet). This leads people to splurge without keeping track of the true financial costs of their decisions. Using cash when shopping will increase the pain of paying and make you more sensitive to how much you’re spending. This, in turn, will ensure that you only spend money on the items you really want. </p>
<h2>3. Decision fatigue</h2>
<p>Research <a href="https://www.guilford.com/books/Handbook-of-Self-Regulation/Vohs-Baumeister/9781462533824">suggests that</a> people have limited reserves of willpower. As we make decisions throughout the day, this reserve becomes exhausted, resulting in “resource depletion”. <a href="https://www.jstor.org/stable/10.1086/510228">Resource depletion</a> causes people to act impulsively. Doing shopping early in the day, and avoiding other sources of stress, such as big crowds, will minimise the risk of resource depletion. </p>
<h2>4. Mindsets</h2>
<p>Psychological states known as “<a href="https://www.sciencedirect.com/science/article/abs/pii/S1057740810000215">mindsets</a>”, which influence perceptions and decision making, can also make people more likely to spend. They occur outside of our conscious awareness, when the thought processes we use in one situation are carried over and used to process information in the next. </p>
<p>Thinking positively in one situation can predispose a person to think positively in an unrelated situation – for example, generating supportive thoughts about giving to charity might prime a person to have positive thoughts about the bottle of detergent they see in an ad break a few minutes later. The makes them more likely to buy it. </p>
<p>Mindsets also influence shopping goals. People with a “deliberative mindset” are open minded and likely to review all their options, while people with an “implemental mindset” are more close-minded and goal-focused. An implemental mindset reduces procrastination and focuses people to pursue their buying goals. These goals could be explicitly stated in a shopping list or even activated unconsciously. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=399&fit=crop&dpr=1 600w, https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=399&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=399&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/251208/original/file-20181218-27755-1577m52.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=502&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Getting more than you bargained for.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/kuala-lumpur-may-12-suria-klcc-141949681?src=9Z1LTHtioTLUw4TLfb-M2g-1-3">Joyfull/Shutterstock.</a></span>
</figcaption>
</figure>
<p>The implemental mindset can be dangerous, because it creates <a href="http://journals.ama.org/doi/10.1509/jmkr.44.3.370">shopping momentum</a>. This is when buying one thing makes you more likely to buy another since your goal-focused mindset remains active even after you bought what you intended. This is one of the reasons why people emerge from shopping centres burdened down with several bags, having gone in to buy one item. </p>
<p>Unfortunately, <a href="https://www.sciencedirect.com/science/article/pii/S074959781000110X">switching between different mindsets</a> can deplete your mental resources and cause you to spend more. Making rules to guide your decisions before you go shopping can counteract the effects of these mindsets and reduce the risk of shopping momentum. For example, telling yourself that if a product is below a certain price, you will buy it, but if it costs more, you will not. Making a list and setting a budget will help you remember the old adage, “it is not a bargain unless you need it”. </p>
<h2>5. Making comparisons</h2>
<p>Shopping is essentially a three step process. First you ask yourself, “do I want to buy something?”; then, “which product is the best?”; and finally, “how will I buy the product?”. But when people consider two possible purchases, it induces a “<a href="https://academic.oup.com/jcr/article-abstract/34/4/556/1820298?redirectedFrom=fulltext">which-to-buy</a>” mindset, which primes them to skip the first question, and makes them more likely to buy something. </p>
<h2>6. The halo effect</h2>
<p>Using mental shortcuts help us navigate everyday life more efficiently. Yet these shortcuts <a href="https://www.penguin.com.au/books/thinking-fast-and-slow-9780141033570">can also lead to</a> incorrect assumptions and costly mistakes. In the context of shopping, not all assumptions are bad. Indeed, some assumptions are central to marketing. For example, branding works because we assume that products under the one brand have a similar level of quality. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/251143/original/file-20181218-27773-1fyzevd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Don’t be fooled.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/closeup-woman-shopping-bags-front-on-357891446">Shutterstock.</a></span>
</figcaption>
</figure>
<p>But other assumptions are less reliable. The “halo effect” occurs when we make incorrect assumptions, which lead us to think positively about something. So, the eye catching deals we see in the front window often make us assume that the other in-store deals are equally valid and generous. </p>
<p>To counteract the halo effect, you need to come prepared. Knowing the recommended retail price (RRP) of products will ensure that you are not influenced by high anchor prices that give the impression of deep discounts. Remaining sceptical and calm will improve your decision making and reduce the risks of cognitive bias. This will likely be good for society, the environment and your pocket.</p><img src="https://counter.theconversation.com/content/108680/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Most people consider themselves canny shoppers – but we’re all human.Brian Harman, Lecturer in Marketing, De Montfort UniversityJanine Bosak, Associate Professor in Organisational Psychology, Dublin City UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1064272018-11-28T11:42:09Z2018-11-28T11:42:09ZWhat big data can tell us about how a book becomes a best-seller<figure><img src="https://images.theconversation.com/files/246277/original/file-20181119-76163-9bhvg8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Factors ranging from the timing of a book's release to its subject matter can determine whether it will crack the vaunted list.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/old-books-on-wooden-shelf-1063027979">Billion Photos/Shutterstock.com</a></span></figcaption></figure><p>The average American reads 12 or 13 books a year, but with over 3 million books in print, the choices they face are staggering. </p>
<p>Despite the introduction of 100,000 new titles each year, only a tiny fraction of these attract a large enough readership to make The New York Times best-seller list.</p>
<p>Which raises the questions: How does a book become a best-seller, and which types of books are more likely to make the list?</p>
<p><a href="https://scholar.google.com/citations?user=vsj2slIAAAAJ&hl=en&oi=sra">I’m a data scientist</a>. Recently, with help of <a href="https://scholar.google.com/citations?user=hb17sPYAAAAJ&hl=en&oi=ao">Burcu Yucesoy</a>, a postdoc in my lab, I put the reading habits of Americans under <a href="http://bestsellers.barabasilab.com/">our data microscope</a>. </p>
<p>We did so by <a href="http://barabasi.com/f/955.pdf">analyzing the sales patterns</a> of the 2,468 fiction and 2,025 nonfiction titles that made The New York Times best-seller list for hardcovers during the last decade.</p>
<h2>Real lives, imaginary action</h2>
<p>The first thing the data reminded me is just how few books in my favorite category, science, become best-sellers – a paltry 1.1 percent. Science books compete for a spot on the nonfiction list with everything from business to history, sports to religion. </p>
<p>Yet, on the whole, hardcovers in these categories don’t fly off the shelves, either. </p>
<p>Which nonfiction titles do? Memoir and biographies, with almost half of the 2,025 nonfiction best-sellers falling into this category.</p>
<p>Then we examined the fiction list. Much of the press focuses on literary fiction – books we see debated by critics, lauded as important and culturally relevant, and eventually taught in schools. </p>
<p>But in the past decade, only 800 books categorized as literary fiction made the best-seller list. Most best-sellers – 67 percent of all fiction titles – represent plot-driven genres like mystery or romance or the kind of thrillers that <a href="https://www.goodreads.com/author/show/14255.Danielle_Steel">Danielle Steel</a> and <a href="https://www.goodreads.com/author/show/18411.Clive_Cussler">Clive Cussler</a> write.</p>
<p>Action sells – there’s no surprise there. </p>
<p>But it was unexpected the degree to which only a handful of authors repeatedly appear: Eight-five percent of best-selling novelists have landed multiple books on the list. Mystery and thriller novelist <a href="https://www.goodreads.com/author/show/3780.James_Patterson">James Patterson</a>, for example, had 51 books on the best-seller list in the period we explored.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/246268/original/file-20181119-76144-1cmix05.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/246268/original/file-20181119-76144-1cmix05.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/246268/original/file-20181119-76144-1cmix05.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=454&fit=crop&dpr=1 600w, https://images.theconversation.com/files/246268/original/file-20181119-76144-1cmix05.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=454&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/246268/original/file-20181119-76144-1cmix05.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=454&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/246268/original/file-20181119-76144-1cmix05.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=570&fit=crop&dpr=1 754w, https://images.theconversation.com/files/246268/original/file-20181119-76144-1cmix05.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=570&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/246268/original/file-20181119-76144-1cmix05.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=570&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">James Patterson has sold over 100 million copies of his book, grossing more than US$1 billion in sales.</span>
<span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/AP-A-FL-USA-ENT-ADV-MILLION-DOLLAR-STORYTELLER/315bd0e286e0da11af9f0014c2589dfb/25/0">AP Photo/Wilfredo Lee</a></span>
</figcaption>
</figure>
<p>By contrast, only 14 percent of nonfiction authors had more than one best-selling book. Perhaps this is because the genre often requires expertise on a specific subject matter. If an author primarily writes about football, or neuroscience, or even her own life, it’s difficult to generate 10 books on the topic.</p>
<h2>A universal sales curve</h2>
<p>Publishers eagerly slap “New York Times Bestseller” stickers on each book that appears on the list’s 15 slots.</p>
<p>A quarter of those, however, have only a cameo appearance, briefly grabbing a spot at the bottom of the list and dropping out after a single week. Only 37 percent have some staying power and spend more than four weeks on the best-seller list. Even fewer – 8 percent – attain the number one spot.</p>
<p>Some rare exceptions can lease out a spot for years: “<a href="https://www.goodreads.com/book/show/4667024-the-help?ac=1&from_search=true">The Help</a>” by Kathryn Stockett lingered on the fiction list for an astonishing 131 weeks, while Laura Hillenbrand’s “<a href="https://www.goodreads.com/book/show/8664353-unbroken?ac=1&from_search=true">Unbroken</a>” stayed on the nonfiction list for a record 203 weeks. </p>
<p>One big misconception is that you have to write a mega-seller to make the list. The majority of titles on The New York Times best-seller list only sell between 10,000 and 100,000 copies in their first year. “<a href="https://www.goodreads.com/book/show/6261532-the-slippery-year?ac=1&from_search=true">The Slippery Year</a>,” a 2009 memoir by Melanie Gideon, made the list with a yearly sale of fewer than 5,000 copies.</p>
<p>How is this possible? </p>
<p>Our data set shows that just about your only chance of making the list is right after your publication date. </p>
<p>That’s because book sales, we discovered, follow a universal sales curve – there’s a single mathematical formula that captures the weekly sales of all books. And that sales curve has a prominent peak right after the release, meaning you sell the most copies during the first weeks after your book’s release. Fiction sales almost always peak within the first two to six weeks; for nonfiction, the peak can come any time during the first 15 weeks.</p>
<p><iframe id="A6uG3" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/A6uG3/1/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>While you might assume that there would be overlooked books that build their audiences slowly and eventually make it onto the hallowed list, there really aren’t.</p>
<h2>It’s all about the timing</h2>
<p>In other words, what happens during a brief window of time can foretell a book’s success. </p>
<p>For this reason, the timing of the release matters a great deal, especially since the threshold to reach the list varies throughout the year. </p>
<p>In February or March, selling a few thousand copies can land a book on the best-seller list; in December – when sales skyrocket during the holidays – selling 10,000 copies a week might not guarantee a book a spot. </p>
<p>So when should authors publish? </p>
<p>It depends on their circumstances. If they lack a strong fan base, and their hope is to simply make it onto the best-seller list, it’s best to aim for February or March. </p>
<p>At the same time, appearing on The New York Times best-seller list doesn’t necessarily guarantee that a book will sell more copies. <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/j.1467-6451.2007.00327.x">Research shows</a> that appearing on the list tends to boost sales only for unknown authors, and the effect disappears after one to three weeks. </p>
<p>So for well-known authors or celebrities who already have built-in fan bases, appearing on the best-seller list might not matter as much. Instead, they’ll likely want to maximize sales – in which case, it’s best to publish in late October: The release will coincide with peak sales in December, when bookstores are packed with Christmas shoppers.</p>
<p>The good news is that if you’re like me – and have written several books that didn’t end up as best-sellers – you still have a chance to break through: Our analysis shows that only 14 percent of novelists made the list with their first book.</p><img src="https://counter.theconversation.com/content/106427/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Barabási's research laboratory is funded by several U.S. Federal Agencies and Foundations, and EU Funding Agencies. He is also affiliated with Harvard Medical School and Central European University in Budapest, Hungary.</span></em></p>It’s easier to make the list than you might think.Albert-László Barabási, Robert Gray Dodge Professor of Network Science, Northeastern UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1070152018-11-21T19:03:03Z2018-11-21T19:03:03ZWhy Australian retailers should respect the past and rename their ‘Black Friday’ sales<figure><img src="https://images.theconversation.com/files/246599/original/file-20181121-161633-1dyex0l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Forest remains after bushfire, Icy Creek Victoria, 1939.</span> <span class="attribution"><span class="source">Wikipedia Commons</span></span></figcaption></figure><p>Australians familiar with “Black Friday” sales might associate them with images of Americans <a href="https://www.bloomberg.com/news/photo-essays/2018-11-18/how-black-friday-became-america-s-greediest-holiday">clambering over each other to battle for iPhones and TVs</a>. Yet this term - used here by companies such as Amazon, <a href="https://www.kogan.com/au/c/black-friday/">Kogan</a>, <a href="https://www.bonds.com.au/black-friday">Bonds</a>, and <a href="https://www.thegoodguys.com.au/black-friday">The Good Guys</a> to promote their sales - is inappropriate for Australia given its association with devastating bushfires.</p>
<p>Traditionally the Friday after the Thanksgiving holiday, “Black Friday” is known in the United States as a commercial bonanza where shoppers can gain large discounts. The term, it seems, <a href="https://newspapers.com/image/187400581/">was invented in the 1960s</a> by Philadelphian police to wryly describe the traffic chaos caused by hordes of post-Thanksgiving shoppers. It became widespread from the 1980s onwards.</p>
<p>Australians shopping online have taken advantage of US-based Black Friday sales for years. But since the 2017 launch here of American retail giant Amazon, other local brands have followed its lead in advertising Black Friday sales. They are doing so this week, with “Black Friday” this year falling on November 23.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1064304980838903808"}"></div></p>
<p>But in Australia, the term Black Friday has a very different history. The 1939 Black Friday bushfires in Victoria were Australia’s worst environmental disaster at the time. Seventy one people were killed and over 1,000 houses were destroyed on January 13, 1939, by fires driven by extreme winds and severe drought.</p>
<p>In the wake of the bushfires, the Victorian government created a Royal Commission led by Judge Leonard Stretton, which collected over 2,500 pages of testimony.</p>
<p>At just 34 pages long and rich with beautiful language, for many years it was required reading for Victorian school students, helping Australians to understand the calamity. Indeed, in 2003, then Victorian Premier Steve Bracks took <a href="https://www.tandfonline.com/doi/abs/10.2104/ha090035">the report home for his weekend reading</a>, seeking a frame of reference to explain his state’s 2002-3 bushfire season. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/246600/original/file-20181121-161612-9zna6g.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/246600/original/file-20181121-161612-9zna6g.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/246600/original/file-20181121-161612-9zna6g.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=351&fit=crop&dpr=1 600w, https://images.theconversation.com/files/246600/original/file-20181121-161612-9zna6g.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=351&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/246600/original/file-20181121-161612-9zna6g.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=351&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/246600/original/file-20181121-161612-9zna6g.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=441&fit=crop&dpr=1 754w, https://images.theconversation.com/files/246600/original/file-20181121-161612-9zna6g.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=441&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/246600/original/file-20181121-161612-9zna6g.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=441&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Sims, P. (1939). Burnt Country between Ada River & Fitzpatrick’s, near VHC No. 2. [picture]. H90.114/45. State Library Victoria.</span>
<span class="attribution"><span class="source">State Library Victoria.</span></span>
</figcaption>
</figure>
<p>In a particularly apt passage, Judge Stretton <a href="https://www.parliament.vic.gov.au/vufind/Record/7898">lamented the lack of environmental knowledge </a> of the victims. These words chill my spine every time I read them:</p>
<blockquote>
<p>Men who had lived their lives in the bush went their ways in the shadow of dread expectancy. But though they felt the imminence of danger they could not tell that it was to be far greater than they could imagine. They had not lived long enough. The experience of the past could not guide them to an understanding of what might, and did, happen.</p>
</blockquote>
<p>Despite Stretton’s eloquence and the policy changes that followed 1939, <a href="http://www.washington.edu/uwpress/search/books/PYNBUR.html">Australia has continued to experience bushfire disasters</a>. The 2009 Black Saturday bushfires in particular affected many of the same areas and were described by environmental historian Tom Griffiths as <a href="http://insidestory.org.au/we-have-still-not-lived-long-enough/">“a recurrent nightmare … 1939 all over again”</a>.</p>
<p>Many of the victims of Black Saturday had no personal memory of 1939, and had not taken steps to prepare for bushfires, by building the shelter bunkers or dugouts <a href="http://www.abc.net.au/pm/content/2008/s2490033.htm">that were once common in these regions</a>. The <em>eucalyptus regnans</em> mountain ash ecosystems and “fire flume” climate dynamics of this region mean that it will blaze again. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/246601/original/file-20181121-161612-1f549x2.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/246601/original/file-20181121-161612-1f549x2.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/246601/original/file-20181121-161612-1f549x2.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=367&fit=crop&dpr=1 600w, https://images.theconversation.com/files/246601/original/file-20181121-161612-1f549x2.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=367&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/246601/original/file-20181121-161612-1f549x2.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=367&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/246601/original/file-20181121-161612-1f549x2.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=461&fit=crop&dpr=1 754w, https://images.theconversation.com/files/246601/original/file-20181121-161612-1f549x2.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=461&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/246601/original/file-20181121-161612-1f549x2.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=461&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Sims, P. (1939). No. 1. Ada [timber Mill, Powelltown, Vic.] [picture]. H90.114/46.</span>
<span class="attribution"><span class="source">State Library of Victoria</span></span>
</figcaption>
</figure>
<p>I’m not suggesting here that Australian businesses should avoid competing in a global shopping bonanza - but I would like to constructively suggest an alternative name for their sales.</p>
<p>As with many so-called “historical traditions” that <a href="https://books.google.com.au/books/about/The_Invention_of_Tradition.html?id=sfvnNdVY3KIC">actually have a very recent origin</a>, the “Black Friday” name was itself largely a construction of the media. While Philadelphia police coined the term, it was <a href="https://www.newspapers.com/newspage/174007687/">spread by local journalists</a> and eventually adopted by national television stations.</p>
<p>Given this, and the fact that many of these sales increasingly run for longer than 24 hours, it does not seem too radical to suggest an alternative Australian name. </p>
<p>My own suggestions are “Big Friday” <a href="https://newspapers.com/image/178306793/">(the name originally preferred by Philadelphians)</a>, “Friday Frenzy” or even the “<a href="http://www.nma.gov.au/explore/collection/highlights/holey-dollar">Holey Dollar Holiday</a>”. I would be interested to hear ideas from others.</p>
<p>More than simply changing the name of a sale, this is an opportunity for us to reflect upon the slow Americanisation of Australian culture. It also raises questions about how we as a society can best commemorate and remember past disasters so as to avoid future ones.</p>
<p>Next year will be the 80th anniversary of Black Friday and the 10th anniversary of Black Saturday. Memories and local histories can guide us to prepare for future disasters, but the rhythms of fire ecology can run longer than human generations. </p>
<p>With more Australians building houses in bushfire-prone areas and <a href="https://theconversation.com/drought-wind-and-heat-when-fire-seasons-start-earlier-and-last-longer-101663">climate change predicted to modify the climatic drivers of fire</a>, Australians need to learn to live with fire. This can even involve <a href="https://theconversation.com/aboriginal-fire-management-part-of-the-solution-to-destructive-bushfires-55032"><em>re-learning</em> about fire</a>. This process must include studying environmental histories - and protecting the legacies of past disasters.</p><img src="https://counter.theconversation.com/content/107015/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Daniel May receives funding from an Australian Government Research Training Program (RTP) Scholarship. </span></em></p>We should remember past disasters - such as the 1939 Black Friday bushfires in which 71 people died - and learn from them.Daniel May, PhD Candidate, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/934242018-03-21T19:36:08Z2018-03-21T19:36:08ZWhy don’t we read the fine print? Because banks know the pressure points to push<figure><img src="https://images.theconversation.com/files/211298/original/file-20180321-165557-m3iyeg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Scarcity, trust and repetition are all pressure selling tactics that can be used to manipulate us.</span> <span class="attribution"><span class="source">Sam Breach/Flickr</span>, <a class="license" href="http://creativecommons.org/licenses/by-nc-nd/4.0/">CC BY-NC-ND</a></span></figcaption></figure><p>The Financial Services Royal Commission has exposed the pressure selling tactics used by the banks. They draw on <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/j.1470-6431.2010.00873.x">simple psychological rules</a> to target <a href="http://journals.sagepub.com/doi/abs/10.1177/0276146705280622">vulnerabilities</a> among some of their most loyal customers. </p>
<p>One example is the high-pressure selling of add-on insurance for customers when they sign up to a credit card. The <a href="https://financialservices.royalcommission.gov.au/public-hearings/Documents/transcripts-2018/transcript-19-march-2018.pdf">Commonwealth Bank of Australia (CBA) acknowledged</a> that upwards of A$13 million of refunds are likely to be paid to consumers who had been pressured into buying these add-on products. </p>
<p>Another witness at the commission, Irene Savidis, relayed what happened when she tried to cancel this insurance:</p>
<blockquote>
<p>they just kind of kept pushing it on me saying, you know, “It’s good for you, it will help you.” I just felt pressured or kind of like, you know, no matter what I said, it was the opposite. So I couldn’t – I felt like I couldn’t cancel it. </p>
</blockquote>
<p>These techniques are well established in <a href="https://labs.la.utexas.edu/buss/files/2015/09/tactics_of_manipulation_1987_jpsp.pdf">psychological research</a> as ways to <a href="http://www.jstor.org/stable/26059056">manipulate behaviour</a>. In this single example, we can see how the representative of the CBA used trust, repetition (the more something is repeated, the more we are <a href="https://qz.com/822907/science-suggests-that-frequently-repeating-a-lie-creates-the-illusion-of-truth/">likely to believe that it is true</a>), <a href="https://www.annualreviews.org/doi/abs/10.1146/annurev.psych.55.090902.142015">authority</a> (the salesperson is perceived to be an expert), and <a href="https://onlinelibrary.wiley.com/doi/abs/10.1002/mar.20541">scarcity</a> (act now, or you will miss out). All of these factors are part of the marketers’ bag of tricks. </p>
<p>As much as trust can be useful under certain circumstances, at times <a href="https://plato.stanford.edu/entries/trust/">it can be dangerous</a>. When we are faced with choices or decisions where we don’t feel confident, we have a tendency to give over our decision making to somebody who we believe has those skills and authority and trust them to do the right thing by us. </p>
<h2>How we make decisions under situations of stress</h2>
<p>As we can see in the examples from the commission, many of these financial decisions are being made by consumers under already significant financial and psychological stress. We also know that under these conditions none of us make the best decisions. </p>
<p>In psychology, <a href="http://psycnet.apa.org/record/2010-12718-004">we know</a> that people don’t always think through their decision making in a rational and linear way when placed under situations of stress. This becomes more pronounced when – counter intuitively – people are provided with lots of information related to a topic that they don’t have the ability to fully understand, either because it is complex and confusing, or even simply because it is in an area that they don’t have any experience in. </p>
<p>It’s in these situations that they <a href="https://www.annualreviews.org/doi/pdf/10.1146/annurev.psych.48.1.609">rely on peripheral information</a> to make their choices – things like colours, previous experience with similar situations, even the aesthetic layout of the information, or the way the person giving them the information is dressed.</p>
<p>When we feel we have less resources, we perform worse on tasks requiring high-level cognitive control, like important decision making. Logical reasoning, the kind that should occur when signing up to a loan, extending our credit, or committing to any major financial agreement, is <a href="https://search.proquest.com/openview/ef6c18e9d928ae85e5574ff973add6ec/1?pq-origsite=gscholar&cbl=37399">relatively inefficient</a> in these situations.</p>
<h2>Responding to pressure selling techniques</h2>
<p>So, how do we respond to the types of techniques that we have seen and any others that might be exposed by the commission over the next 12 months?</p>
<p>We need to accept that our decision making is flawed and not judge ourselves, or others, harshly, when they seem to make irrational decisions, or behave in a way that is counter-intuitive. We need to accept that people are complicated, and will make a decision that conforms to their emotional state of mind, at that point in time.</p>
<p>That said, there are some things people can do to avoid some of these manipulative tactics. One thing is to do your best to slow down when it comes to decision-making. If you do want to buy something, that’s fine, but do it outside the heat of the sales process. </p>
<p>Speak to someone you trust about your plans. Recognise that your emotional brain may already have convinced your rational brain that you are making a good decision, so you need to check in with someone who isn’t emotionally engaged in the decision. </p>
<p>And if the person offering something like add-on insurance creates a sense of scarcity, then identify the feeling, and assume you can walk away. A classic technique of traditional sales is to say something along the lines of, “I can only offer you this now”, but the best response is always to take your time. If they are offering you this today, they are more than likely to offer it to you tomorrow. </p>
<p>One thing that has emerged from the royal commission is the somewhat obvious fact that banks are businesses. Indeed, <a href="https://theconversation.com/consumers-need-critical-thinking-to-fend-off-banks-bad-behaviour-93489">people should not be fooled into thinking</a> that banks are anything other than profit-driven organisations. Banks know exactly what they are doing when it comes to the use of manipulative techniques to get customers to buy their products. </p>
<p>The hope is that this royal commission will be able uncover and act upon some of the practices verging on illegal, while highlighting some of the more unpleasant and unethical practices that have been occurring.</p><img src="https://counter.theconversation.com/content/93424/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Paul Harrison has received funding from the Australian Securities Investment Commission, Consumer Action Law Centre, Victorian Department of Health, Australian Communications Consumer Action Network and Monash Health. </span></em></p><p class="fine-print"><em><span>Chiara Piancatelli does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In psychology, we know people don’t always think through their decision-making in a rational and linear way when placed under situations of stress.Paul Harrison, Director, Centre for Employee and Consumer Wellbeing; Senior Lecturer, Deakin Business School, Deakin UniversityChiara Piancatelli, Visiting Research Associate, Deakin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/897122018-01-29T12:22:23Z2018-01-29T12:22:23ZWhat you need to know about compulsive shopping — the modern addiction no one’s talking about<p>Many people will have hit the shops or gone online to bag a bargain in the January sales over the last few weeks and may now be feeling the pinch until their next payday. It is an annual tradition for some – with tales of <a href="http://www.mirror.co.uk/news/uk-news/shoppers-queue-street-midnight-stores-11751747">shoppers getting up in the middle of the night</a> to secure the latest bargain. For other people though, <a href="http://shura.shu.ac.uk/17069/">shopping is not something that can be easily controlled</a> – and is used as a coping mechanism for anxiety and low self-esteem. </p>
<p>These compulsive shoppers are unable to resist strong inner urges to make repeated purchases and to spend excessively – even when they can’t afford to do so, or have no use for the product they buy. </p>
<p><a href="http://irep.ntu.ac.uk/id/eprint/27158/1/PubSub4615_Griffiths.pdf">Recent research</a> indicates that compulsive buying behaviour affects almost 5% of the adult population in developed countries – particularly young women in low income groups. And the condition is on the rise, with latest estimates indicating that <a href="http://onlinelibrary.wiley.com/doi/10.1111/ijcs.12396/abstract">around 14% of people</a> have a mild form of the condition. </p>
<h2>Shop till you drop</h2>
<p>While we’re all familiar with impulse buying – from picking up a chocolate bar at the checkout to having a blowout on pay day – compulsive buying behaviour is very different.</p>
<p>When most people buy things they’re generally motivated by value and usefulness. Whereas compulsive buyers purchase to relieve stress, gain social approval, and improve their self image. </p>
<p>This type of shopping is a behavioural addiction characterised by a reduced capacity for self control and a lower resistance to external triggers. It causes serious psychological, social and financial consequences for sufferers and their families. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/202870/original/file-20180122-182959-r3mlt2.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/202870/original/file-20180122-182959-r3mlt2.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=422&fit=crop&dpr=1 600w, https://images.theconversation.com/files/202870/original/file-20180122-182959-r3mlt2.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=422&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/202870/original/file-20180122-182959-r3mlt2.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=422&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/202870/original/file-20180122-182959-r3mlt2.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=530&fit=crop&dpr=1 754w, https://images.theconversation.com/files/202870/original/file-20180122-182959-r3mlt2.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=530&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/202870/original/file-20180122-182959-r3mlt2.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=530&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Most compulsive shoppers are women.</span>
<span class="attribution"><a class="source" href="https://www.pexels.com/photo/woman-at-shoe-store-318236/">Pexels</a></span>
</figcaption>
</figure>
<p><a href="http://onlinelibrary.wiley.com/doi/10.1111/ijcs.12396/abstract">My research</a> with Agata Maccarrone-Eaglen at Salford Business School used samples from the UK, Spain, China and the Czech Republic to develop a new screening tool to diagnose this disorder. The tool uses seven behavioural statements. If a respondent strongly agrees with the statements, it could be an indication of compulsive buying behaviour.</p>
<p>The results indicate that it screens more effectively for compulsive buying behaviour than existing diagnostic tools, and also distinguishes between mild and severe forms of the condition.
Ultimately, our aim is that using the tool, people with compulsive buying disorder will get diagnosed sooner, so they can access the help they need.</p>
<h2>Serious addiction</h2>
<p><a href="http://onlinelibrary.wiley.com/doi/10.1111/ijcs.12396/abstract">Our research</a> found the condition was more prevalent in the UK than in the other countries we looked at, and more so among young adults –particularly women. This may well be because at this age, excessive behaviour is often socially acceptable among peers so the condition may go unrecognised for longer. And access to more credit facilities nowadays is likely to aggravate the situation. Indeed, <a href="https://www.thersa.org/discover/publications-and-articles/rsa-blogs/2018/01/are-british-workers-thriving-striving-or-just-about-surviving">a recent study</a> found that at least 70% of the UK’s working population are “chronically broke”, with many falling into credit card debt for everyday spending.</p>
<p>The consequences of compulsive buying behaviour can be just as severe as other types of addiction – such as alcoholism and problem gambling – with people falling into serious debt and their relationships falling apart. But unlike these addictions, there is no national charity dedicated to compulsive buying. </p>
<p>This is why it’s important that GP’s and other health professionals recognise the addiction, and offer support such as cognitive behavioural therapy. Because it is only through diagnosis and then treatment that the growing number of people who are afflicted with this condition can hope to restore balance to their lives.</p><img src="https://counter.theconversation.com/content/89712/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Schofield does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Compulsive spending is on the rise, here’s what you need to know.Peter Schofield, Senior Academic in the Department of Service Sector Management, Sheffield Hallam UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/883732017-12-27T16:57:30Z2017-12-27T16:57:30ZRead this before you go sales shopping: the environmental costs of fast fashion<p>It’s tough to love our clothes and <a href="http://www.catexel.com/news/market-experts-explore-ways-lighten-textiles-environmental-load/">keep wearing them for longer</a> when we are faced with a tempting array of newness on offer in the shops. But before you head out into the January sales for those irresistible deals, spare a thought for the impact of fast fashion on the environment.</p>
<p>Fast fashion focuses on speed and low cost in order to deliver frequent new collections inspired by catwalk looks or celebrity styles. But it is <a href="http://www.greenpeace.org/international/en/news/Blogs/makingwaves/fast-fashion-drowning-world-fashion-revolution/blog/56222/">particularly bad</a> for the environment as pressure to reduce cost and the time it takes to get a product from design to shop floor means that environmental corners are more likely <a href="https://www.theguardian.com/sustainable-business/2017/jun/13/hm-zara-marks-spencer-linked-polluting-viscose-factories-asia-fashion">to be cut</a>. Criticisms of fast fashion <a href="http://www.thefashionlaw.com/learn/fast-fashions-green-initiatives-dont-believe-the-hype">include</a> its negative environmental impact, water pollution, the use of toxic chemicals and increasing levels of textile waste.</p>
<p>Vibrant colours, prints and fabric finishes are appealing features of fashion garments, but many of these are achieved with <a href="http://source.ethicalfashionforum.com/article/10-toxic-chemicals-to-avoid-in-your-products">toxic chemicals</a>. Textile dyeing is the <a href="http://file.scirp.org/Html/4-8301582_17027.htm">second largest</a> polluter of clean water globally, after agriculture. Greenpeace’s recent Detox campaign has been instrumental in pressuring fashion brands to take action to remove toxic chemicals from their supply chains, after it tested a number of brands’ products and confirmed the presence of <a href="http://www.greenpeace.org/eastasia/press/releases/toxics/2012/toxic-chemicals-detox-zara/">hazardous chemicals</a>. Many of these are <a href="http://e360.yale.edu/features/can_waterless_dyeing_processes_clean_up_clothing_industry_pollution">banned or strictly regulated</a> in various countries because they are toxic, bio-accumulative (meaning the substance builds up in an organism faster than the organism can excrete or metabolise it), disruptive to hormones and carcinogenic.</p>
<p>Polyester is <a href="http://textileexchange.org/wp-content/uploads/2017/02/TE-Preferred-Fiber-Market-Report-Oct2016-1.pdf">the most popular</a> fibre used for fashion. But when <a href="https://www.theguardian.com/environment/2016/jun/20/microfibers-plastic-pollution-oceans-patagonia-synthetic-clothes-microbeads">polyester garments</a> are washed in domestic washing machines they shed microfibers that add to the increasing levels of plastic in our oceans. These microfibers are <a href="https://www.theguardian.com/sustainable-business/2017/feb/12/seafood-microfiber-pollution-patagonia-guppy-friend">minute</a> and can easily pass through sewage and wastewater treatment plants into our waterways, but because they do not biodegrade, they represent a serious threat to aquatic life. Small creatures such as plankton eat the microfibres, which then make their way up the food chain to <a href="https://www.theguardian.com/sustainable-business/2017/feb/12/seafood-microfiber-pollution-patagonia-guppy-friend">fish and shellfish</a> eaten by humans.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-your-pile-of-laundry-fills-the-sea-with-plastic-pollution-80109">How your pile of laundry fills the sea with plastic pollution</a>
</strong>
</em>
</p>
<hr>
<p>The devastating impact of toxic chemical use in agriculture for growing cotton was shown in a documentary called <a href="https://truecostmovie.com/">The True Cost</a>, including the death of a US cotton farmer from a brain tumour and serious birth defects in Indian cotton farmers’ children. Cotton growing requires high levels of <a href="https://ejfoundation.org/what-we-do/cotton/the-true-costs-of-cotton">water and pesticides</a> to prevent crop failure, which can be problematic in <a href="https://www.statista.com/statistics/263055/cotton-production-worldwide-by-top-countries/">developing countries</a> that may lack sufficient investment and be at risk of drought. </p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/OaGp5_Sfbss?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<p>Most cotton grown worldwide is <a href="https://truecostmovie.com/learn-more/environmental-impact/">genetically modified</a> to be resistant to the bollworm pest, thereby improving yield and reducing pesticide use. But this can also lead to <a href="http://livebettermagazine.com/article/the-dark-side-of-genetically-modified-foods/">problems</a> further down the line, such as the emergence of “superweeds” which are resistant to standard pesticides. They often need to be treated with more toxic pesticides that are harmful to livestock and humans. </p>
<p>There is growing interest in organic cotton, with H&M and Inditex, the parent company of Zara, featuring among the world’s <a href="https://textileexchange.org/downloads/2017-organic-cotton-market-report/">top five</a> users of organic cotton by volume in 2016. But overall use of organic cotton represents <a href="https://www.c-and-a.com/uk/en/corporate/company/newsroom/featured-stories/2016/for-the-love-of-fashion/">less than 1%</a> of the world’s total annual cotton crop.</p>
<h2>Hunger for newness</h2>
<p>Textile waste is an unintended consequence of fast fashion, as more people buy more clothes and don’t keep them as long as they used to. The international expansion of fast fashion retailers exacerbates the problem on a global scale. Wardrobes in developed nations are saturated, so in order to sell more products, retailers must tempt shoppers with constant newness and convince them the items they already have are no longer fashionable. </p>
<p>Increasing disposable income levels over <a href="https://www.economist.com/news/finance-and-economics/21730674-gap-closing-millennials-are-doing-better-baby-boomers-did">recent generations</a> means there is less need to “make do and mend”, as it’s often cheaper and more convenient to buy new <a href="https://theconversation.com/community-repair-a-pop-up-alternative-to-the-throwaway-society-75821">than have an item repaired</a>. Busy lifestyles make many people more time-poor than previous generations, and with the loss of sewing and mending skills over time, there is less impetus to repair our garments. The rise of supermarket fashion that can be purchased alongside the weekly shop and the regular occurrence of seasonal sales make clothing seem “disposable”, in a way it didn’t used to be.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/community-repair-a-pop-up-alternative-to-the-throwaway-society-75821">Community repair: a pop-up alternative to the throwaway society</a>
</strong>
</em>
</p>
<hr>
<p>There is interest in moving towards a more circular model of textile production which <a href="https://daily.jstor.org/fashion-forward-three-revolutionary-fabrics-greening-industry/">reuses</a> materials wherever possible, yet current recycling rates for textiles are <a href="https://www.ellenmacarthurfoundation.org/publications/a-new-textiles-economy-redesigning-fashions-future">very low</a>. Despite a long-established national network of charity shops and increasing numbers of in-store recycling points in UK high street stores, <a href="https://www.theguardian.com/environment/2017/apr/06/britons-expected-to-send-235m-items-of-clothing-to-landfill-this-spring">three-quarters of Britons</a> throw away unwanted clothing, rather than donating or recycling it.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/199931/original/file-20171219-4995-wr6a6a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/199931/original/file-20171219-4995-wr6a6a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/199931/original/file-20171219-4995-wr6a6a.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/199931/original/file-20171219-4995-wr6a6a.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/199931/original/file-20171219-4995-wr6a6a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=504&fit=crop&dpr=1 754w, https://images.theconversation.com/files/199931/original/file-20171219-4995-wr6a6a.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=504&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/199931/original/file-20171219-4995-wr6a6a.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=504&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">No more make do and mend.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/home">wwww.shutterstock.com</a></span>
</figcaption>
</figure>
<h2>What shoppers can do</h2>
<p>So, can consumers reduce the environmental cost of fast fashion when out shopping? Choosing an eco-friendly fabric is complex as there are <a href="https://www.nrdc.org/sites/default/files/CBD-Fiber-Selection-FS.pdf">pros and cons</a> to all fibre types. Garments which are labelled as being made from natural fibres are not necessarily better than synthetic, as fibre choice is only one part of a complex picture. Fibres still have to be spun, knitted or woven, dyed, finished, sewn, and transported – all of which have different environmental impacts. </p>
<p>For example, choosing organic fabrics is better than choosing non-organic fabrics in terms of the chemicals used to grow the fibres, but organic cotton still requires high amounts of water and the impacts of dyeing it are <a href="https://www.nrdc.org/sites/default/files/CBD-Fiber-Selection-FS.pdf">higher</a> than the impacts of dyeing polyester. </p>
<p>Recycled content is often best of all, as it reduces the pressure on virgin resources and tackles the growing problem of waste management. For example, <a href="http://www.patagonia.com/recycled-polyester.html">Patagonia</a> was the first outdoor clothing brand to make polyester fleece out of plastic bottles. In 2017, it decided to rationalise its T-shirt ranges and from spring 2018, will offer only two fabric options of either 100% organic cotton or a blend of recycled cotton and recycled polyester, recognising that even organic cotton has a negative environmental impact. </p>
<p>The <a href="http://loveyourclothes.org.uk/">Love Your Clothes</a> initiative from the charity WRAP gives information for consumers on each stage of the purchase process, from buying smarter, to caring for and repairing items, to upcycling or customisation, and finally responsible disposal. Ultimately, the best thing we can do is to keep our clothing in use for longer – and buy less new stuff.</p><img src="https://counter.theconversation.com/content/88373/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Patsy Perry does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Water pollution, toxic chemical use and textile waste: fast fashion comes at a huge cost to the environment.Patsy Perry, Senior Lecturer in Fashion Marketing, University of ManchesterLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/852122017-12-11T03:00:56Z2017-12-11T03:00:56ZHow the ‘Greatest Showman’ paved the way for Donald Trump<figure><img src="https://images.theconversation.com/files/198342/original/file-20171208-27714-18s5l2n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">'I don’t care what they say about me,' P.T. Barnum once said, 'as long as they spell my name correctly.'</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/phineas-t-barnum-1810-1891-entertainment-244397026?src=J_Bvx2GUW4CrkguVoL77fA-1-0">Everett Historical/Shutterstock.com</a></span></figcaption></figure><p>Historian James Cook, in his 2001 book “<a href="http://www.hup.harvard.edu/catalog.php?isbn=9780674005914&content=reviews">The Arts of Deception</a>,” points to July 1835 as “the birth date of modern American popular culture.” </p>
<p>That month, a frustrated grocer named Phineus Taylor Barnum purchased Joice Heth, a purported 161-year-old slave who had been George Washington’s nanny. </p>
<p>Barnum furiously promoted her as “Absolutely the Greatest Natural and National Curiosity in the World.” It worked: <a href="http://www.nyhistory.org/exhibit/great-attraction-masonic-halljoice-heth">Over 10,000 people</a> saw her at New York City’s Niblo’s Garden during a two-week exhibition.</p>
<p>But while <a href="https://lostmuseum.cuny.edu/archive/pt-barnum-on-joice-heth-1855">patrons gave testimonials</a> assuring her authenticity, Barnum decided to muddy the waters: He wrote anonymous letters <a href="https://books.google.com/books?id=swO1ZhYjwG4C&pg=PA2&lpg=PA2&dq=%22a+deception+cleverly+made+of+India+rubber,+whalebone,+and+hidden+springs.%22&source=bl&ots=hfe82QUyYL&sig=dsC6iSTBYxB6QF7yMMKRHxOlpxU&hl=en&sa=X&ved=0ahUKEwiR2J3L2vvXAhUh5oMKHWpNDmcQ6AEIJzAA#v=onepage&q=%22a%20deception%20cleverly%20made%20of%20India%20rubber%2C%20whalebone%2C%20and%20hidden%20springs.%22&f=false">calling her</a> “a deception cleverly made of India rubber, whalebone, and hidden springs.” The ploy challenged people to judge for themselves whether she was real or a hoax. </p>
<p>After Heth died in 1836, an autopsy was arranged to determine her age. A lesser huckster might have shrunk from the spotlight, fearing being exposed. Not Barnum: He charged customers <a href="https://lostmuseum.cuny.edu/archive/the-heth-humbug-new-york-herald-february-29">50 cents</a> to observe the autopsy. (She ended up being around 80 years old.)</p>
<p>Now P.T. Barnum is the subject of a new musical biopic starring Hugh Jackman, “<a href="https://www.youtube.com/watch?v=AXCTMGYUg9A">The Greatest Showman</a>.” It’s a fitting moment to release a film featuring the country’s most famous impresario, entrepreneur and – some would say – scam artist. </p>
<p>Today, the country is gripped in a populist fervor, just as it was in Barnum’s time. Advertising – then in its infancy – now <a href="https://theconversation.com/is-there-any-way-to-stop-ad-creep-75445">saturates all parts of our lives</a>. And of course there’s the country’s new president, who’s one year into his first term. Barnum’s showmanship pulses through every fiber of Donald Trump’s political style. </p>
<h2>Selling to the masses</h2>
<p>In the 1830s, <a href="http://www.dictionary.com/browse/jacksonian-democracy">Jacksonian democracy</a> was supplanting Jeffersonian elitism. The political movement challenging the existing social order in favor of the social, religious and aesthetic preferences of ordinary people, or, as composer Aaron Copeland <a href="https://en.wikipedia.org/wiki/Fanfare_for_the_Common_Man">later rhapsodized</a>, “the Common Man.” </p>
<p>Acutely attuned to the times, Barnum wielded an extraordinary sense of what appealed to the masses. He rejected the country’s elitist culture, promoting a more egalitarian “pop” culture. “Nobody ever lost a dollar by underestimating the taste of the American public,” <a href="https://www.goodreads.com/author/quotes/201036.P_T_Barnum">he would later write</a>.</p>
<p>Barnum had a word for his style of showmanship: “Humbug,” the playful gulling of people for money. He claimed his audiences enjoyed being fooled by his ingenious deceptions. Although he never said “There’s a sucker born every minute,” his career (and fortune) hinged on this belief. </p>
<p>“The bigger the humbug,” <a href="https://books.google.com/books?id=wisLAAAAIAAJ&printsec=frontcover&dq=the+life+of+PT+barnum&hl=en&sa=X&ved=0ahUKEwj-9c2R3frXAhVD1oMKHR4iBrQQ6AEIJzAA#v=onepage&q=the%20life%20of%20PT%20barnum&f=false">he boasted in his 1854 autobiography</a>, “the better the people will take it.” Barnum insisted that he limited his trickery to harmless scams solely to amuse people who, in effect, were in on the joke. </p>
<p>In 1841, he built upon the success of the Heth exhibition by opening the American Museum in Lower Manhattan. Displaying thousands of exotic oddities, human and otherwise, the museum would attract <a href="http://www.nytimes.com/2007/11/09/arts/09expl.html">38 million patrons</a> between 1841 and 1865.</p>
<figure class="align-right ">
<img alt="" src="https://images.theconversation.com/files/198341/original/file-20171208-27689-1afyloa.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/198341/original/file-20171208-27689-1afyloa.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=881&fit=crop&dpr=1 600w, https://images.theconversation.com/files/198341/original/file-20171208-27689-1afyloa.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=881&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/198341/original/file-20171208-27689-1afyloa.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=881&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/198341/original/file-20171208-27689-1afyloa.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1107&fit=crop&dpr=1 754w, https://images.theconversation.com/files/198341/original/file-20171208-27689-1afyloa.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1107&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/198341/original/file-20171208-27689-1afyloa.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1107&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Chang Bunker and Eng Bunker, the conjoined twin brothers whose condition and birthplace became the basis for the term ‘Siamese twins.’</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/brizzlebornandbred/5969545449">Paul Townsend</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc/4.0/">CC BY-NC</a></span>
</figcaption>
</figure>
<p>There was the Feejee Mermaid, a half monkey, half fish sewn together; the “Siamese Twins”; a bearded lady (actually a man); and his most famous oddity, the mysterious “<a href="http://www.ptbarnum.org/egress.html">Egress</a>.” Patrons couldn’t wait to see what lurked behind what was, in the end, simply the exit door. (In today’s museums, the “Egress” leads to the gift shop.)</p>
<p>But Barnum’s most famous enterprise was “The Greatest Show on Earth,” the circus he developed with former rival James Bailey in 1881. To accommodate its hundreds of colorfully dressed performers and animals, he built an enormous tent featuring three giant rings and two stages. </p>
<p>The star of the show was an elephant named Jumbo. Its enormous size (over 13 feet tall, weighing over six tons), gentle disposition (rare in African elephants) and his “love of children” made Jumbo arguably the most popular attraction of Barnum’s 50-year career. </p>
<h2>The art of the ad</h2>
<p>While advertising and promotion existed before Barnum, the showman elevated the art <a href="http://www.ctpost.com/local/article/P-T-Barnum-Master-of-advertising-and-promotion-565330.php#photo-244049">to a new level</a>.</p>
<p>Barnum was keenly aware of advertising’s power, <a href="https://es.scribd.com/document/272726791/Barnum">preaching</a> that “Advertising is to a genuine article what manure is to land – it largely increases the product.”</p>
<p>To promote the Feejee Mermaid, Barnum cited fake testimony from selected “scientists” authenticating its veracity. His flyers included <a href="https://www.flickr.com/photos/internetarchivebookimages/14778926711">drawings of bare-breasted mermaids</a>, introducing sex into marketing.</p>
<p>Most newspaper ads of the time included a simple description of the product. Barnum’s featured brash typography, artwork, exclamation points and – especially – hyperbole and superlatives (“Perhaps there never was before in the world such an instance of extraordinary success as my Museum presents!”).</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/198338/original/file-20171208-27680-1ihrs3c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/198338/original/file-20171208-27680-1ihrs3c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/198338/original/file-20171208-27680-1ihrs3c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=390&fit=crop&dpr=1 600w, https://images.theconversation.com/files/198338/original/file-20171208-27680-1ihrs3c.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=390&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/198338/original/file-20171208-27680-1ihrs3c.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=390&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/198338/original/file-20171208-27680-1ihrs3c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=490&fit=crop&dpr=1 754w, https://images.theconversation.com/files/198338/original/file-20171208-27680-1ihrs3c.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=490&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/198338/original/file-20171208-27680-1ihrs3c.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=490&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">An ad for the ‘all-famous and gigantic’ Jumbo the elephant, the ‘mighty lord of all beasts,’ ‘the show of all shows.’</span>
<span class="attribution"><a class="source" href="https://commons.wikimedia.org/wiki/File:Barnum_Courier,_1883.jpg">Wikimedia Commons</a></span>
</figcaption>
</figure>
<p>Barnum invented other advertising techniques. Huge banners covered the façade of his museum, while <a href="https://c1.staticflickr.com/5/4077/4743705438_045af6f041_b.jpg">colorful paintings of himself</a> adorned his privately owned circus train (think of the photos today’s politicians paste on <a href="http://mediad.publicbroadcasting.net/p/wshu/files/201410/Foley_campaign_bus_in_Shelton.jpg">campaign buses</a>). He lined the roof of his museum with Drummond lamps as beacons – forerunners of the searchlights later used to bring attention to big events (and seen in the logo for <a href="https://www.hollywoodreporter.com/sites/default/files/imagecache/gallery_landscape_1296x730/2013/06/20th_Century_Fox_Logo_1981_1994.jpg">20th Century Fox</a>).</p>
<p>And because they didn’t cost a dime, Barnum preferred promotions to paid advertising. For example, in 1850, he decided to bring star singer Jenny Lind, “<a href="https://www.britannica.com/biography/Jenny-Lind">the Swedish Nightingale</a>,” to the United States for a concert tour. </p>
<p>Advance men breathlessly promoted it, holding raffles and poetry contests for free seats. They created a mythology for Lind: she was a one-time impoverished woman who became an orphan-supporting philanthropist. </p>
<p>By the time Lind arrived at New York’s harbor, a mass of 40,000 people greeted her, and her 93 concerts ended up netting Barnum <a href="https://www.biography.com/people/pt-barnum-9199751">over US$500,000</a>.</p>
<h2>Glory to his name!</h2>
<p>As Barnum’s renown grew, he didn’t try to recede from the spotlight. Instead, he made his name central to his brand – one of the first self-promoters to explicitly tie his name to his product. </p>
<p>After fire destroyed the museum in 1865, he rebuilt it and placed “BARNUM” in enormous letters atop its five-story apex. <a href="http://nodepression.com/article/blues-circus-tent">Ads for his circus</a> featured a woodcut of Barnum and “BARNUM! I AM HERE!” in large type, with “Greatest Show on Earth” in smaller print. Even Barnum’s personal letterhead <a href="https://books.google.com/books?isbn=0816626316">proclaimed his glory</a>: “The Sun of the Amusement World from which All Lesser Luminaries Borrow Light.” </p>
<p>The media rebuked Barnum’s braggadocio. Ralph Waldo Emerson groused in his journal that “men had rather be deceived than not; witness the secure road to riches of Barnum and the quacks.” </p>
<p>“I don’t care what they say about me,” <a href="https://www.nku.edu/%7Eturney/prclass/readings/3eras1x.html">Barnum countered</a>, “as long as they spell my name correctly.”</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/198337/original/file-20171208-27686-1xz1v50.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/198337/original/file-20171208-27686-1xz1v50.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/198337/original/file-20171208-27686-1xz1v50.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/198337/original/file-20171208-27686-1xz1v50.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/198337/original/file-20171208-27686-1xz1v50.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/198337/original/file-20171208-27686-1xz1v50.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/198337/original/file-20171208-27686-1xz1v50.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/198337/original/file-20171208-27686-1xz1v50.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">It’s all about the name.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/las-vegas-usa-october-28-2016-509410294?src=QwzfdKJi5QxJCx0quUUCJg-1-7">James.Pintar/Shutterstock.com</a></span>
</figcaption>
</figure>
<p>Barnum’s shameless self-promotions became not only acceptable but expected. Today no one blinks when a boxer anoints himself “The Greatest,” when a country boy becomes the “King of Rock and Roll” – or when a boastful billionaire <a href="https://www.theguardian.com/us-news/video/2015/jun/16/donald-trump-us-president-republicans-video">says</a> he’ll be “the greatest jobs president God ever created.”</p>
<h2>The ghost of Barnum</h2>
<p>In 1956, psychologist Paul Meehl coined a term, “<a href="https://en.wikipedia.org/wiki/Barnum_effect">the Barnum effect</a>,” to explain why people embrace objectively bogus claims. Essentially, if claims are phrased in positive (but vague) ways, they reinforce the predisposition of people to believe what they want to believe. To reduce the Barnum effect <a href="https://www.psychologytoday.com/blog/sideways-view/201411/weve-got-something-everyone-the-barnum-effect">to its simplest premise</a>: “Tell the customer what he wants to hear.” </p>
<p>It’s a talent at which the greatest showmen and admen excel, and Barnum-esque hyperbole now dominates modern advertising. </p>
<p>“Our biggest sale ever!” is a line dutifully deployed, by the same companies, year after year. Taco Bell’s <a href="http://gaia.adage.com/images/bin/image/jumbo/Taco_Bell_-_Super_Bowl_50_-_Bigger_Than_Everything_16.jpg">quesalupa</a> is “Bigger than everything,” while “awesome” is used for all things pleasing (along with “unbelievable” and “amazing”). In a <a href="https://hollandpintarch.wordpress.com/2011/11/15/hyperbole-in-advertising/">trifecta of hyperbole</a>, Brilliant Brunette Shampoo, for example, “adds amazing luster for an infinite, mirror-like shine.” </p>
<p>Jumbo the elephant lives on. His name describes products ranging from <a href="https://i.ytimg.com/vi/85If-PuES8M/maxresdefault.jpg">shrimp</a> to <a href="http://www.hoovers.com/company-information/cs/company-profile.jumbo_foam_mattresses_industries_ltd.3d7a7ac3938f5b9b.html">mattresses</a> to <a href="http://www.lykki.com/media/catalog/product/cache/2/image/800x/9df78eab33525d08d6e5fb8d27136e95/c/h/cheerios7830_2.jpg">cereal boxes</a>. Sports arenas boast of their massive digital scoreboards, or “Jumbotrons,” while Starbucks’s “regular” cup of coffee – the “Grande” – is a nod to Jumbo’s legacy. </p>
<p>Meanwhile, Donald Trump has his own words for humbugging: “truthful hyperbole.” </p>
<p>It’s “an innocent form of exaggeration,” he wrote in his 1987 book “<a href="https://books.google.com/books?id=Ye6e_VxM00kC&printsec=frontcover&dq=the+art+of+the+deal&hl=en&sa=X&ved=0ahUKEwiF_vy56PrXAhUB9IMKHWjJCbMQ6AEIJzAA#v=onepage&q&f=false">The Art of the Deal</a>,” “and a very effective form of promotion.” </p>
<p>It’s impossible to miss the Barnumisms (a popular term in his day) in the Trumpisms deployed during the candidate’s political rise: </p>
<p><em>“I have a Gucci store that’s worth more than [Mitt] Romney.”</em></p>
<p><em>“And we will build a big, beautiful wall!”</em></p>
<p><em>“I could stand in the middle of Fifth Avenue and shoot somebody and I wouldn’t lose voters.”</em> </p>
<p>Barnum, according to historian Daniel Boorstin, was also “the master of the pseudo-event.” In 1843, the American Museum featured Native Americans that Barnum falsely claimed had killed white men out West. Provoking curiosity and fear in his customers, the exhibit was a hit. </p>
<p>Similarly, Trump has a tendency to create narratives out of thin air – whether it’s his claim that he saw <a href="http://www.politifact.com/truth-o-meter/statements/2015/nov/22/donald-trump/fact-checking-trumps-claim-thousands-new-jersey-ch/">American Muslims dancing on rooftops</a> after 9/11 or that <a href="http://www.politifact.com/truth-o-meter/statements/2016/nov/28/donald-trump/donald-trumps-pants-fire-claim-millions-illegal-vo/">millions of illegal immigrants</a> voted for Hillary Clinton. Like Barnum, Trump instinctively seems to understand that manufactured outrage, drama and intrigue work better than paid advertising. (After all, Trump famously received <a href="https://www.nytimes.com/2016/03/16/upshot/measuring-donald-trumps-mammoth-advantage-in-free-media.html?_r=0">billions</a> in free media coverage during the 2016 campaign.)</p>
<p>Looking at Barnum’s “yuge” impact on American culture – on entertainment, on advertising, on commerce – it’s almost surprising that it took so long for a showman to become president. </p>
<p>But alarm bells should have been going off all the way back in 1875. </p>
<p>That year, Barnum was elected mayor of Bridgeport, Connecticut.</p><img src="https://counter.theconversation.com/content/85212/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michael Greenwald does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The new movie about P.T. Barnum couldn’t come at a better time: It’s impossible not to see his ghost in our culture, in our advertisements and in our president.Michael Greenwald, Emeritus Professor of Theater, Texas A&M UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/722772017-03-16T19:16:56Z2017-03-16T19:16:56ZWhy consumers fall for ‘sales’, but companies may be using them too much<p>When you walk through an Australian mall you are bombarded with signs saying “buy one, get one free” and “70% off”, and shops seem to be perpetually running sales. This is understandable, as the presence of a sale sign, even without a price reduction, can <a href="https://www.jstor.org/stable/2626826?seq=1#page_scan_tab_contents">increase sales</a>. But there is such a thing as too much discounting. </p>
<p><a href="http://www.nelsonpricing.com.ar/biblioteca_pricing/2001_02_Are_sale_signs_less_effective_when_more_products_have_them_Anderson_E.pdf">Research shows</a> that discounts become less effective as more products are put on sale. There’s also <a href="http://dx.doi.org/10.1108/09590550910966187">a limit</a> to how much you can discount a product, as customers have a minimum amount they will pay for something. </p>
<h2>How we determine ‘good value’</h2>
<p>Prices affect consumers <a href="https://www.researchgate.net/publication/225683380_The_dual_role_of_price_Decomposing_consumers'_reactions_to_price">depending on factors</a> such as how often they visit the store, how much they spend, whether they are visiting to buy or browse, and their ability and willingness to retain, process and recall prices.</p>
<p><a href="http://journals.ama.org/doi/abs/10.1509/jmkg.2005.69.4.84?code=amma-site">Behavioural pricing research</a> shows that consumers hold in their minds an internal reference price that is based on their previous experiences with a brand, competitor brands, or similar products. This internal reference price is central to how we make decisions about what to buy because it is how we determine if prices encountered in the market have changed and whether product offerings are a good value. </p>
<p>Reference prices become particularly important when a higher “regular” price is contrasted with the lower “sale” price. Consumers think something is a “good deal” when their internal reference price is higher than the sale price.</p>
<p>However, the difference between “regular” prices and “sale” prices can only be perceived at a certain point. In order to change behaviour the difference must be greater than what is called a “differential price threshold” – the minimum amount required to <a href="https://www.jstor.org/stable/3149411?seq=1#page_scan_tab_contents">cause a change in perception</a>. </p>
<p>To illustrate, it is <a href="https://www.jstor.org/stable/1252160?seq=1#page_scan_tab_contents">unlikely</a> that someone shopping for a shirt priced at $49.99 will react spectacularly if it were reduced to $47.49 – a discount of only 5%. But they might if it were reduced to $39.99 – a 20% discount. Thus, providing consumers with more meaningful savings increases purchases. </p>
<p>In this case, a 20% discount is more attractive not only because it is four times larger than 5%, but also because it changes the left-most digit in the price – from a 4 to a 3 ($49.99 to $39.99). This provides an important cue for consumers. <a href="https://academic.oup.com/jcr/article/32/1/54/1796360/Penny-Wise-and-Pound-Foolish-The-Left-Digit-Effect">Research shows</a> that the left-most digit is very important in price perception – that’s why so many prices end in 99 cents. </p>
<h2>Discounts can go too far</h2>
<p>All consumers have a minimum and maximum price they are willing to pay for a product or service. For instance, a consumer may doubt the quality of a barber service if the price is less than $10 for a haircut. The same consumer may find the service too expensive if paying $100 or more. </p>
<p>The closer the price point of a product to their maximum/minimum price thresholds, the lower the consumers’ uncertainty about the purchase. <a href="http://dx.doi.org/10.1108/09590550910966187">One study</a> showed that when a laptop was discounted by more than 50% there was a decline in willingness to buy.</p>
<p>Increasing the frequency of discounts can also have negative consequences for the brand and retailers’ image. Each time a consumer experiences a discount it is added to his/her reference price used for future purchases. The higher the frequency of discounts for a brand, the higher the likelihood that the sale price will become the new reference price, reducing consumers’ willingness to buy the product at full price. </p>
<p>Consumers soon learn that if they wait, they will get a better deal. This is why many Australian retailers offer consumers a guarantee of lower prices. For example, Coles’ <a href="https://theconversation.com/down-down-but-not-different-australias-supermarkets-in-a-race-to-the-bottom-48151">pricing campaign</a> assures consumers that they do not need to worry about future price increases. </p>
<p>The certainty associated with deals posted weekly gives consumers a sense that prices are not increasing and helps the brand to form a lower price image. Similarly, 7-Eleven has <a href="https://www.itnews.com.au/news/7-eleven-app-lets-users-lock-in-cheapest-petrol-price-416292">developed an app</a> that lets consumers “lock in” a fuel price for up to seven days. </p>
<h2>The takeaway</h2>
<p>As we can see from the research into how prices affect consumers, we love a bargain. But it’s not as simple as lowering prices. We analyse products through a number of different lenses, including our preconceived notions about the product, brand and store. </p>
<p>Our internal price comparison system can be inaccurate for infrequent purchases, but it is <a href="https://www.jstor.org/stable/2489682?seq=1#page_scan_tab_contents">decent for products we constantly buy</a>. In the end, a deal is a good deal if we pay less than we expected to. </p>
<p>But that doesn’t mean companies should go crazy with discounts. This can have long-term impacts on perceptions about the product, brand and store. And that, in turn, has knock-on effects such as reducing the reference price for other products.</p><img src="https://counter.theconversation.com/content/72277/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nicolas Pontes does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Discounts can be really powerful in driving sales, but companies should be wary of overusing them.Nicolas Pontes, Lecturer, QUT Business School, Queensland University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/699832017-03-15T03:50:26Z2017-03-15T03:50:26ZWe shouldn’t ignore the potential of virtual reality advertising<figure><img src="https://images.theconversation.com/files/152977/original/image-20170117-23932-ajpdcf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock.com</span></span></figcaption></figure><p><em>The tech revolution is coming to advertising. Chatbots are replacing humans, data threatens our privacy, and the blockchain is linking it all together. In our series on <a href="https://theconversation.com/topics/tech-and-advertising-36831">tech and advertising</a>, we’re taking a look at how the industry is being reshaped.</em></p>
<hr>
<p>By <a href="https://www.idc.com/getdoc.jsp?containerId=prUS41676216">some estimates</a> virtual reality (VR) will be a US$162 billion industry by 2020. Only 50% of this figure is projected to come from hardware sales; the rest will be revenue from software, content and services. It’s not just the size of the market that advertisers cannot afford to ignore, but the unique potential of VR to influence choices and behaviour. </p>
<p>This is due to something called the <a href="https://www.researchgate.net/publication/229051732_Sense_of_presence_in_virtual_reality_exposures_therapy">Sense of Presence</a>. Presence is the feeling that you are actually within the scene, as if you are physically there. </p>
<p>It’s unlike watching a video through a flat screen. Anyone who has tried VR will have experienced this phenomenon, as the following video explains:</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/hutXD8mReXw?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Sense of Presence: The Future of Virtual Reality.</span></figcaption>
</figure>
<p>With presence, a whole host of other psychological factors come into play. Researchers at Stanford University’s Virtual Human Interaction Lab have been <a href="http://vhil.stanford.edu/pubs/">studying the effects of VR on behaviour for years</a> and have come up with some amazing results. Perhaps most notable is their finding that how we appear to others and ourselves in VR can change our behaviour in the “real world”. </p>
<p><a href="http://journals.ama.org/doi/abs/10.1509/jmkr.48.SPL.S23?code=amma-site">Prematurely ageing someone in VR</a>, for example, was found to make them think about their future. This led them to spend less and save more in real life. <a href="https://vhil.stanford.edu/mm/2011/bailenson-ieee-vr-social.pdf">Other studies</a> found that participants’ visibly losing weight in VR was associated with exercising more and eating less, and that subjects could be made to feel more confident and social. </p>
<p>As one of the primary aims of advertising is to influence buying behaviour, this means VR opens up even greater possibilities than traditional forms of advertising media. You could almost liken it to having a salesman in every person’s computer.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/IIGFGF1hQmw?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Stanford researchers examine the psychology of virtual reality.</span></figcaption>
</figure>
<h2>The platforms are coming</h2>
<p>While VR advertising is still in its infancy, it is growing. The use of VR adverts is somewhat closely linked to the rise of <a href="https://theconversation.com/ten-cool-applications-for-virtual-reality-that-arent-just-games-56365">VR apps</a>, but not completely. </p>
<p>The rapid adoption of 360-degree videos is one sign of this. These videos are shot with special cameras, allowing viewers to choose where they look during playback. They can already be delivered across a wide variety of platforms, including <a href="https://www.facebook.com/facebookmedia/get-started/360">Facebook</a> and <a href="https://youtube-creators.googleblog.com/2015/03/a-new-way-to-see-and-share-your-world.html">Youtube</a>. </p>
<p>This video of a fashion show illustrates perfectly how the technology works. The viewer can spin around using their computer mouse or by moving their phone, yet it still works as a normal video.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/PJhzsom7IO8?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">360° video VR Fashion Show – Freedom of Fashion – de Bijenkorf.</span></figcaption>
</figure>
<p>Some major companies are already putting out 360 content. <a href="https://upload.omnivirt.com/publish_demo/23">Nike</a> and <a href="https://upload.omnivirt.com/publish_demo/25">Coca Cola</a> are just two examples. Sports leagues <a href="http://www.nba.com/vr">like the NBA</a> are starting to broadcast in VR, creating slots to advertise in virtual reality. </p>
<p>Distributors are also coming to market, ready to bridge the gap between VR advertising and these platforms. <a href="https://www.omnivirt.com/">Omnivert</a> is one and <a href="https://virtualsky.com/">Virtual Sky</a> another. They bill their 360 advertising in the categories of sponsorship ads (like those that play on YouTube videos) and experience ads, where customers can get an immersive view of the actual experience that is being sold. </p>
<p>The advantage of these companies is that they will distribute content that runs on a variety of VR hardware as well as normal PCs, mobiles and tablets. This means anyone can view it. </p>
<p>The disadvantage of 360 videos is the fixed viewpoint of the camera. In true VR the viewer is usually free to move around the scene at will. This requires programming and the use of specialist software to create and deliver. But this, too, is only a matter of time.</p>
<h2>Advertisers and consumers take note</h2>
<p>As the technology and industry mature, the computing requirements and cost for VR are <a href="https://arstechnica.com/gaming/2016/10/oculus-lowers-minimum-rift-specs-using-asynchronous-spacewarp-tech/">starting to drop</a>. VR will be increasingly accessible and the opportunities to advertise will grow as well.</p>
<p>This presents an opportunity for advertisers, especially those <a href="http://adage.com/article/digitalnext/engagement-a-b-s-metric-ad-agency/305248/">unhappy</a> with current digital offerings. VR is a new market with lots of growth ahead of it, but it also has huge potential to change behaviour and choices. We are only at the beginning of research and practice into VR and psychology.</p><img src="https://counter.theconversation.com/content/69983/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Dr David Evans Bailey does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Virtual reality holds huge potential for advertisers but we should all take note of its potential for manipulation.Dr David Evans Bailey, PhD Researcher in Virtual Reality, Auckland University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/694732016-11-28T05:26:39Z2016-11-28T05:26:39ZCooling-off periods for consumers don’t work: study<figure><img src="https://images.theconversation.com/files/147697/original/image-20161128-22751-nbhmvf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">"Cooling-off" periods for purchases made in high-pressure selling situations like door-to-door sales don't help consumers, research shows. </span> <span class="attribution"><span class="source">image from shutterstock.com</span></span></figcaption></figure><p>When customers are offered a “cooling off” period, they don’t change their minds, even when the alternative is considered subjectively better, our <a href="http://consumeraction.org.au/wp-content/uploads/2016/11/161104-Headline-findings.pdf">research</a> finds. We also found that some consumers (around 30%) only responded when contacted by the seller and asked if they would still like to opt in.</p>
<p>Under current Australian consumer law, Australians have a 10-day cooling-off period on any sale that was unsolicited – usually through door knocking or telemarketing. The idea of a cooling-off period exists partially because external forces, such as high-pressure selling, can have a significant influence on the choices that consumers make. </p>
<p>It’s not simply a case of telling consumers to read the terms and conditions, and then leaving them to their own devices, particularly when business (and their salespeople) use tried and true methods to get customers to buy products that may not necessarily be the best option for them. </p>
<p>The problem with the current cooling-off periods is that they operate after a customer has taken ownership of something or signed an agreement. Our research finds cooling-off periods simply don’t overcome many of the inherent biases of human behaviour.</p>
<p>Dr Josh Newton and I, from Deakin University’s <a href="https://www.deakin.edu.au/business/research/centre-for-employee-and-consumer-wellbeing">Centre for Employee and Consumer Wellbeing</a>, tested how 759 consumers responded when presented with cooling-off and opt-in alternatives as part of an online survey. </p>
<p>A number of behavioural theories, such as the <a href="https://www.princeton.edu/%7Ekahneman/docs/Publications/Anomalies_DK_JLK_RHT_1991.pdf">endowment effect</a>, the <a href="https://www.hks.harvard.edu/fs/rzeckhau/SQBDM.pdf">status quo bias</a> and <a href="https://www.researchgate.net/profile/Robert_Cialdini/publication/232541029_Preference_for_Consistency_The_Development_of_a_Valid_Measure_and_the_Discovery_of_Surprising_Behavioral_Implications/links/0a85e53b2ea96b5713000000.pdf">consistency theory</a>, show that once a person “owns” something, they value it more and are less likely to give it up – at least in the short term. This is particularly the case if they have put mental, physical or social effort into their decision. </p>
<p>Similarly, many agreements require customers to “imagine” what the service will be like. This is simply because when we buy something from a unsolicited sales process, we haven’t really had time to process what the purchase actually means. We all tend to imagine that our lives will be better with something new, because our current reality is real, whereas the future is abstract. </p>
<p>There’s also a power imbalance between a customer who has been targeted in an unsolicited context and a salesperson who has had training, significant sales experience and sometimes a <a href="https://www.moneysmart.gov.au/borrowing-and-credit/borrowing-basics/avoiding-sales-pressure">script</a> to anticipate our responses. </p>
<p>In the context of cooling-off periods (and thus changing our minds), <a href="http://s3.amazonaws.com/academia.edu.documents/38441488/Harrison_et_al_2014_-_Beyond_door-to-door.pdf?AWSAccessKeyId=AKIAJ56TQJRTWSMTNPEA&Expires=1480301401&Signature=G2ddWnsvc5L5us0uaLRHUuWo5%2FI%3D&response-content-disposition=inline%3B%20filename%3DBeyond_Door-to-Door_The_Implications_of.pdf">research shows</a> it takes a significant amount of cognitive resources to admit we made a mistake. Again, this is not a conscious use of resources, but happens regardless of how rational we think we are. The role of our ego is to protect us, so out of our conscious reach, our ego creates defences, including apathy, that restrict us from changing our mind after we have become endowed with something.</p>
<p>These behaviours were also shown <a href="http://consumeraction.org.au/wp-content/uploads/2012/04/Shutting-the-Gates.pdf">in my 2009 research</a> into in-home sales. I found once consumers had actually signed a large financial contract for a pretty poor educational software package, their likelihood of cancelling that contract within ten days (which until recently was the cooling-off period in Victoria) was remote. </p>
<p>In early 2017, Australia’s consumer protection agencies will deliver a review of the current laws, including these cooling-off periods. However, what should get more attention under these laws is the idea of an opt-in clause. This would give consumers a real chance to change their minds after they’ve had time to think.</p>
<h2>How an opt-in clause works</h2>
<p>The opt-in clause works in two parts. It’s based on the principle that we should give consumers, under certain circumstances, more time and resources to think about the consequences of a purchase. </p>
<p>We suggest that after a consumer has signed a sales agreement in their home, it does not take effect until the consumer then “opts in” (confirms) some time between 24 to 48 hours after first signing the agreement, by contacting the company and confirming that they wish to continue. If the consumer does not opt in, the contract lapses. </p>
<p>Our research shows that an opt-in clause would work most effectively if the seller is unable to contact the consumer during the opt-in period. The consumer would then be able to make their choice free of pressure-selling technique. The opt-in approach would empower Australians to make purchases free of predatory sales tactics — the contract is only final when you re-contact the trader after two days.</p>
<p>This approach would help to overcome the <a href="https://faculty.washington.edu/jdb/345/345%20Articles/Baumeister%20et%20al.%20(1998).pdf">pressure and the psychological biases</a> during the sales process. And the idea makes logical (and perhaps, business, sense) – if the product is good and the customer wants it badly enough, they will opt in. The sales process does not rely on predatory tactics, but on good products and good communication between the seller and the customer. </p>
<p>What this approach will do is force businesses to target the right consumers, design better products and undertake more honest sales processes, rather than relying on the high-pressure selling techniques – often targeting vulnerable people – that are common in some of these sectors.</p><img src="https://counter.theconversation.com/content/69473/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Paul Harrison receives funding from Consumer Action Law Centre, Australian Communications Consumer Action Network, Australian Securities and Investment Commission, and Monash Health. He is a director of the Telecommunications Industry Ombudsman (TIO), and advisory panel member of the Essential Services Commission. </span></em></p>Customers who make purchases under pressure don’t use the usual 10-day cooling-off period given under law, new research finds.Paul Harrison, Senior lecturer, Deakin Business School; Director, Centre for Organisational Health and Consumer Wellbeing, Deakin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/557982016-03-08T10:26:01Z2016-03-08T10:26:01ZEverything you ever wanted to know about nuisance phone calls<figure><img src="https://images.theconversation.com/files/113887/original/image-20160304-17726-trviyo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">How not to deal with sales calls</span> <span class="attribution"><span class="source">wavebreakmedia/Shuuterstock</span></span></figcaption></figure><p>We’ve all experienced it. Your phone rings, you pick it up, say hello and it’s someone you don’t know trying to sell you something – or a recorded message. Nuisance calls can be irritating, time-wasting and for some people, highly distressing. But can anything be done about them?</p>
<p>In July 2013, the <a href="https://ico.org.uk/">Information Commissioners Office</a> (ICO) and telecommunications regulator, <a href="http://www.ofcom.org.uk/">Ofcom</a>, announced they were <a href="http://stakeholders.ofcom.org.uk/consultations/silent-calls/joint-action-plan/">joining forces</a> to tackle nuisance calls. Then, from last April, the <a href="https://ico.org.uk/action-weve-taken/nuisance-calls-and-messages/">ICO was given new powers to crack down</a> on nuisance calls through an amendment to the <a href="https://ico.org.uk/for-organisations/guide-to-pecr/">Privacy and Electronic Communications Regulations</a>. The results of which are now starting to be seen. </p>
<p>Only last month the ICO issued its <a href="https://ico.org.uk/about-the-ico/news-and-events/news-and-blogs/2016/02/record-fine-for-company-behind-staggering-46-million-nuisance-calls/">largest ever fine of £350,000 to Prodial</a>, a company that had made more than 46m nuisance calls. </p>
<p>Manchester based <a href="http://www.manchestereveningnews.co.uk/business/business-news/marketing-cold-calls-firm-fined-10904916">MyIML</a>, a telemarking company selling solar panels was also recently fined £80,000 by the ICO for contacting people who had opted out of receiving marketing calls. </p>
<h2>Why are nuisance calls such an issue?</h2>
<p>One of the main reasons nuisance calls are such a big problem these days is that it has never been so easy or cheap to setup a call centre. Today’s telephone network is one large computer and with business connection charges falling, all a telesales company needs is their own computer loaded with software – which is <a href="https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=call%20centre%20software">readily available from the web</a>. </p>
<p>With <a href="http://www.voipfone.co.uk/What_Is_Voip.php">modern Voice over IP systems</a>, call centres don’t even need their own direct link to the telephone network, so long as they are connected to the internet. The telesales organisation’s computer can then automatically dial telephone numbers, connecting those that answer through to telesales operators or a recorded message. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/113889/original/image-20160304-17714-gy9gyt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/113889/original/image-20160304-17714-gy9gyt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/113889/original/image-20160304-17714-gy9gyt.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/113889/original/image-20160304-17714-gy9gyt.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/113889/original/image-20160304-17714-gy9gyt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/113889/original/image-20160304-17714-gy9gyt.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/113889/original/image-20160304-17714-gy9gyt.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Don’t call us, we’ll call you!</span>
<span class="attribution"><span class="source">Tyler Olson/shutterstock</span></span>
</figcaption>
</figure>
<p>There is generally considered to be <a href="http://consumers.ofcom.org.uk/phone/tackling-nuisance-calls-and-messages/?a=0">three types</a> of nuisance call. <a href="http://consumers.ofcom.org.uk/phone/tackling-nuisance-calls-and-messages/live-marketing-calls/">Live calls</a> are unwanted calls from a real person, normally from a telesales company. <a href="http://consumers.ofcom.org.uk/phone/tackling-nuisance-calls-and-messages/recorded-message-marketing-calls/">Automated calls</a> result in you hearing a pre-recorded marketing message when you answer the phone. And <a href="http://consumers.ofcom.org.uk/phone/tackling-nuisance-calls-and-messages/abandoned-and-silent-calls/">silent or abandoned calls</a> are just that – when you answer the phone no-one’s there. Then there’s also the issue of unwanted <a href="http://consumers.ofcom.org.uk/phone/tackling-nuisance-calls-and-messages/marketing-texts/">SMS text messages</a>. </p>
<p>In January 2016, <a href="https://ico.org.uk/action-weve-taken/nuisance-calls-and-messages/">the ICO received 9,633</a> reports of nuisance calls to be investigated: 45% of these related to automated calls, 42.5% live calls and 12.5% SMS text messages. </p>
<h2>How can you stop nuisance calls?</h2>
<p>With nuisance calls becoming such a, well, nuisance, the telephone providers are now moving to tackle the problem at source. <a href="http://help2.talktalk.co.uk/how-do-i-manage-nuisance-calls">Talk Talk</a> has expanded their HomeSafe system to monitor the frequency of calls and to automatically block those that exceed a threshold from even reaching a customer’s phone. And in February this year, <a href="http://home.bt.com/news/bt-life/bt-offers-breakthrough-service-to-divert-huge-numbers-of-nuisance-calls-11364039280071">BT announced a similar service</a> is to be rolled out across their network. </p>
<p>But on top of this, there is also a lot you can do yourself to help reduce the number of calls. First off, you should always report nuisance calls to either the ICO or Ofcom – so they can be investigated. It’s all too easy to get annoyed and slam the phone down, but if you take a minute to gather as much information as possible and pass it on to the relevant organisation, at least then you might be saving someone else from the nuisance of nuisance calls in the future.</p>
<p>You should also register with the <a href="http://www.tpsonline.org.uk/tps/index.html">Telephone Preference Service</a>. While this alone won’t stop nuisance calls, because it relies on the compliance of organisations, it does act as a deterrent, and is well worth doing if you haven’t done so already. </p>
<p>Another way of managing nuisance calls, is by using <a href="https://www.nfon.com/gb/solutions/resources/glossary/clip/">caller line identification</a> – which allows you to see the number of the person calling you. If you don’t recognise it, you simply have the option of not answering. You can also use call blocking either on your phone or through your telephone provider to stop calls from specific numbers. </p>
<p>Another tip, don’t immediately speak but listen when answering the phone because if it remains silent, there’s a good chance it’s a telesales call. </p>
<p>And of course, you’ve probably heard if before, but do be very careful of the small print on any paper or online form you complete, as you may inadvertently be allowing that organisation to contact you for marketing purposes - effectively saying yes to cold calling. </p>
<h2>Will they ever go away?</h2>
<p>Over the years, telecommunications firms have benefited from connecting companies to their networks and through the sale of services such as call blocking, so it is good to see some of that now being re-invested into tackling nuisance calls. </p>
<p>However, the next challenges are already emerging with a growing number of nuisance calls now being directed towards mobile phones. “<a href="http://consumers.ofcom.org.uk/phone/tackling-nuisance-calls-and-messages/phone-spoof-scam/">Spoofing</a>” has also become a big issue, with telesales companies now able to deceive us, and the network providers, by faking their own telephone number to get you to take the call. </p>
<p>So while it is good to see the regulators have begun the fightback with a renewed determination, sadly, so long as it remains profitable for telesales companies to operate, nuisance calls will continue to plague us. Even if overall volumes are reduced, each one we receive is still a nuisance.</p><img src="https://counter.theconversation.com/content/55798/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nigel Linge is a Fellow of the IET, ITP and BCS Professional Institutions.
He has also received funding for research projects from the EPSRC and EU.</span></em></p>Is hanging-up the only way of getting rid of cold callers?Nigel Linge, Professor, Computer Networking and Telecommunications, University of SalfordLicensed as Creative Commons – attribution, no derivatives.