Retailers have long relied on a variety of tactics to influence consumer behaviour. Many of these strategies – such as strategic product placement, psychological pricing, scarcity, and urgency tactics – are well-known to consumers, who are increasingly aware of how they are being manipulated. Despite this awareness, consumer behaviour remains largely driven by emotion, not reason.
While much attention is given to increasing sales through neuromarketing techniques, not enough focus is placed on retaining customers through customer experience. The real missing link in retail strategy is understanding how the memory of an experience – and the emotional immersion associated with that memory – can drive repeat purchases. Consumers who have had positive experiences with brands are more likely to spend more, forgive mistakes, and advocate for those brands.
Retailers often prioritise sales and marketing tactics, some of which leverage psychological manipulation, to maximize revenue. However, in an economic climate where disposable income is limited, the true value lies in customer retention. The cost of acquiring new customers far outweighs the cost of keeping loyal ones.
Research from the 2024 South African Customer Experience Report highlights a shift in consumer expectations: reliability and trust are now more important than just good service.
Common Manipulative Tactics in Retail
Psychological Pricing
Creating the illusion of a better deal is a common tactic used by retailers:
1. Charm Pricing (Left-Digit Effect)
- Pricing items at R9.99 instead of R10 makes the price seem significantly lower due to how the brain processes numbers.
- The first digit carries more weight (R299 is perceived as cheaper than R300).
2. Prestige Pricing (Rounding Up for Luxury Perception)
- Luxury brands use rounded numbers – R2000 instead of R1999 – because rounded numbers feel more premium.
- Consumers associate whole numbers with quality rather than discounts.
3. Decoy Pricing (The “Compromise Effect”)
- Offering three pricing options:
- Basic: R199
- Mid-tier: R299 (most popular)
- Premium: R499
- The middle option is strategically placed to appear as the best value.
4. BOGO (Buy One, Get One Free)
- Instead of discounting, brands use “Buy One, Get One Free” to make customers feel they’re getting extra value, even if the price is inflated.
5. Anchor Pricing (Reference Point Influence)
- Displaying an original price next to a discounted one:
- “Was R200, now R150” makes R150 seem like a great deal.
- Stores also use high-priced items near regular-priced ones to make the latter seem more affordable.
6. Odd-Even Pricing
- Odd-numbered prices (R49.95, R299.99) are associated with bargains.
- Even numbers (R500, R1200) give a perception of high-end quality.
7. Price Bundling
- Combining items into a “value pack” to increase perceived savings:
- “3 for R99” instead of R35 each makes customers feel like they’re saving.
- This tactic also increases basket size.
8. Time-Limited Discounts (Urgency Pricing)
- “Only available today!” or “Flash sale – 24 hours only!” encourages impulse purchases.
- Fear of missing out (FOMO) drives customers to act quickly.
9. Price Partitioning (Breaking Down Costs)
- Instead of R1200 for a gym membership, pricing it as “Only R100 per month” makes it seem more affordable.
- Subscription services use this to reduce perceived cost barriers.
10. Psychological Price Thresholds
- A product priced at R1999 appears much cheaper than R2000, even though the difference is only R1.
- Many consumers have mental pricing limits (under R500), so retailers price just below them.
Store Layout & Product Placement
- Essential goods at the back: Forces consumers to walk through the entire store.
- Eye-level placement: Most profitable products are placed where they’re most visible.
- End-cap displays: High-margin products at aisle ends to catch attention.
- Impulse buy sections: Small, tempting items at checkout queues.
Sensory Manipulation
- Visual: Colour psychology influences behaviour:
- Red triggers urgency and appetite.
- Blue builds trust and reliability.
- Green is linked to eco-friendliness and health.
- Touch: Supermarkets exaggerate refrigeration to enhance the perception of freshness.
- Sound:
- Slow music encourages lingering and more spending.
- Loud music in bars boosts alcohol sales.
- Luxury brands invest in acoustics for an immersive experience.
- Smell:
- Freshly baked bread increases bakery sales.
- Coffee aroma makes cafés more inviting.
- High-end hotels use signature scents to enhance experience.
- Nostalgic fragrances like cinnamon can evoke comforting childhood memories, increasing purchase likelihood.
- Experiential: Free samples leverage the reciprocity principle—when given something free, consumers feel obligated to reciprocate with a purchase.
Consumers Know They’re Being Manipulated – Now What?
The study “Customer Manipulation in a Retail Outlet and the Customer’s Purchasing Decisions” by Rudzewicz and Kowalkowski (2021), examines consumer awareness of manipulative tactics used by retailers. The study found that while consumers recognise certain manipulative strategies, their purchasing decisions are still significantly influenced by these tactics. This suggests that even when consumers are aware of manipulation, these strategies can effectively impact their buying behaviour.
The 2024 South African Customer Experience Report reveals a growing gap between businesses and consumers regarding loyalty drivers. Many consumers no longer seek “great” service but rather reliable, consistent service.
E-commerce leaders like Checkers Sixty60 and Takealot have thrived by building trust through reliable delivery and seamless user experiences. Consumers are now more willing to spend on brands that offer reliability and positive interactions, particularly in sectors such as:
- Fast food & restaurants
- Beauty & personal care
- Grocery retail
- Healthcare & medical aid
- Travel & accommodation
- Clothing & fashion
Shifting from Manipulation to Customer Experience Design
Rather than manipulating consumers into spending more, retailers should also focus on crafting experiences that encourage loyalty and repeat purchases, though:
- Personalisation: Use AI and human interactions to tailor experiences.
- Effortless experiences: Streamline digital platforms, checkout processes, and after-sales support to ensure the least effort is required from customers to make a purchase.
- Positive emotional impact: Ensure customers leave feeling valued, heard, and satisfied through every contact.
- Active listening: Use customer feedback to improve, redesign broken processes, and enhance user experience.
The Smarter Path Forward
Retailers must rethink their approach. Instead of only relying on short-term manipulation tactics, businesses should focus on building trust, enhancing customer experience, and fostering long-term loyalty. A great experience leads to repeat business, higher spending, positive word-of-mouth, and resilience during downturns.
The missing link in retail strategy isn’t just about pushing more sales—it’s about making customers feel valued, heard, and truly connected to the brand.
