The consumer watchdog has accused Kogan Australia of misleading customers, by touting discounts on more than 600 items it had previously raised the price of.
Insights from behavioural (and traditional) economics help explain why discounting – both real and fake – is such an effective marketing ploy.
The IKEA effect says ‘that labour alone can be sufficient to induce greater liking for the fruits of one’s labour’.
The IKEA effect is caked in myth, but the phenomenon of consumers valuing their own efforts is proven and potent.
Tiny houses on display in Portland, Oregon in 2017.
Dan David Cook/Wikimedia
Research shows that moving from a larger dwelling to a tiny home can change behavior in surprising ways.
One use and done? Not always.
Many communities are banning single-use plastic shopping bags to reduce pollution, but a study in California shows that some consumers responded by purchasing more heavy plastic trash bags.
Researchers studied whether subtly being exposed to different colors could change tipping behavior.
Studies show a weak relationship between tip amounts and quality of service. But the color gold seems to have a way of making diners feel wealthier – and more generous.
Department stores and clothing retailers are drawing on consumer behaviour and psychological research to compete with online shopping.
Traditional retailers want to lure you back with a shopping experience that online stores just can't provide.
A ‘Mickey Mouse’ Christmas tree at a shopping mall in Kuala Lumpur, Malaysia. The commercial aspects of Christmas have assisted its embrace in non-Christian countries.
Many people become more forgiving of poor service if there are Christmas symbols around.
Modern slaves are not kept in literal chains, but this does not justify being oblivious to it. Consumers should care about how a product is made.
Hidden slavery is a growing global problem but we continue to turn a blind eye and embrace a seemingly insatiable demand for fast, cheap goods and services.
Australians happily pay more for free-range eggs, but that hasn’t translated to other animal products.
Nearly half the eggs sold in Australia are free-range, but only 5% of pork comes from pigs raised outdoors.
Is forgetting your bags really such an inconvenience?
AAP Image/Peter Rae
Meet the 'Yeah-buts' - those who know plastic is bad for the environment, but can't get behind the bag ban because it affects their own convenience. This mindset can stall the best-laid green plans.
Most Australian children have such a glut of toys that parents are opting to give them gift cards so they can choose for themselves.
Many children receive gift cards or even ask for them so they can choose their own presents. But are youngsters ready to handle the wiles of advertisers and the complexities of 'credit' on a card?
Product intervention powers apply across investment, insurance and credit products but it will never be easy for ASIC to prove the risk of “significant consumer detriment”.
Research shows the majority of consumers have low financial knowledge and experience, but they are also prone to behavioural biases that don't help.
Money-saving screen time?
Trying to keep cool this summer while not blowing the power bill? A new mobile game aims to encourage energy efficiency - and research shows it can be more effective than simple advertising campaigns.
Are you ready?
A retail scholar explains what drives consumers to behave badly on one of the busiest shopping days of the year.
Undoing shoppers’ engrained behaviours is a tricky job.
AAP Image/Julian Smith
The success of the plastic bag ban announced by Australia's big two supermarkets will hinge on whether they can persuade customers to change an engrained behaviour - without annoying them.
The infamous 1994 Wonderbra advert featuring Czech model Eva Herzigova.
The old adage that 'sex sells' is past its sell-by date, as consumers now sport a more socially-conscious mindset.
Spanish activists protest against retailers using factories in a building in Bangladesh which collapsed, killing more than 600 people.
"Shaming campaigns" have been successful in attracting attention to transnational issues like inhumane working conditions and environmental degradation. But shaming guilty corporations is only the first step.
So many ways to win.
Would a chance to win a big cash prize make you more likely to recycle your old drinks bottles? Economic analysis suggests so.
Time for a tax?
Bychykhin Olexandr / Shutterstock.com
Celebrity chef Jamie Oliver’s campaign to introduce a sugar tax on fizzy drinks and snacks has been gaining momentum. Oliver has a history of trying to persuade the British public to eat more healthily…
Poundland sold well over a billion items last year.
Thinglass / Shutterstock.com
Discount stores thrive on their ability to attract the shoppers who want to shop there – not just the ones who need to.