Monday, November 2, 2009

Retailers Using Psychology to Boost Christmas Sales

This year, it seems as if stores have decked their malls earlier than ever. Immediately after the first frost, Christmas decorations bloomed at various retailers, nearly squeezing out the Halloween wares. Could it be that merchants, always concerned with the state of the consumer's psyche, are just trying to cheer us up during this deep, dark recession? Alas, no. Apparently, they are trying to "psych" us out in an effort to persuade us to spend those last few pennies on Christmas purchases even as the economy continues to spiral downwards.

An article by Associated Press writer Anne D'Innocenzio describes this marketing strategy. Last year's dismal year-end sales have spawned a new marketing campaign to revive holiday spending: Retro-Christmas. Well, that's what I call it, anyway. Retailers are bringing back memories of Christmas of yore in order to get us to spend more (I'm waxing poetic). Nostalgia sells, as merchants well know. Therefore, it's out with the new and in with the old: Gingerbread houses, classic glass tree ornaments and tartan plaid everywhere you look. This is their plan to make us spend money we don't have. Brilliant!

Actually, I find this all a bit insulting. Unemployment is closing in at 10%, one-third of those applying for loans are getting refused and the U.S. income gap is widening every day. These are undeniable facts, yet these marketing geniuses seem to think that most of us will just throw caution to the wind and stock up on useless do-dads to put under the tree. Perhaps they haven't noticed that consumers have been steadily cutting back on debt and the use of credit cards, two behaviors that bode ill for retailers at Christmas time. More likely, they have noticed and hope to reverse that trend despite the sad fact that there won't be any more money in consumers' wallets come January, when these type of bills come due.

The article quotes a "professor of consumer psychology" at San Fransisco's Golden Gate University as saying, "Nostalgia is a way for people to feel safe". Well, maybe it does if you have a nice cushy academic job teaching "consumer psychology", whatever that is. For the rest of us, however, it's a bit less academic and more real-world. People who are unemployed and can't pay their bills aren't going to be conned into spending funds they don't have simply by walking by a display of pine cones and dripping tinsel. What we really need is Santa to bring us the sort of bonus our government gave the big guys around this time last year. Let's see...$787 billion divided amongst 200 million households... Ho Ho Ho! Now there's a Merry Christmas!

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