Question

A common pratice at many supermarkets is to show the customer's total "savings" on their purchase at the bottom of the receipt. Such savings include the total discounts from goods purchased along with savings from coupons used. How would listing the total savings on a receipt influence an individual's consumption habits? Of what type of behavioral factor does this strategy take advantage?

Answer 1

The products of the Retail shops prominently fulfills the need of every customers on daily, monthly and yearly basis. But all the customers are not grouped under high income class. Some customers are not so financially strong. Before entering into the sales of the products, the Retail shops need to investigate the pulse of the purchasing power of the customers to buy all products based on their daily utility. After doing market research, The retail shop owners favors the customers by giving discount for the specific products which have high market price. Such discounts are calculated from reducing it from the original market price. It can also termed as consumer surplus. As mentioned above, every bill has receipt will reflect the savings of the customers bill amount in the bottom of the receipt. It will be greatly influence the consumers plan of budget of purchase of such discounted prices in each month. This will basically create the impact on consumer habits. By listing the total savings in the receipt the consumer can able to difference in the original price and the market price of products being sold in other retail shops with higher market price.

Consumer behavior blended not only with purchasing power of the people, but it can also featured as habitual behavior. Recently, such habitual behavior is the strategy adopting by all Retail shops will fetch advantages of both sides of buyers and the sellers point of view. Buyers can earn wind full of profits without bearing any loss and and also consumers can also buy the products with the discount price which will turn increase the savings from the budget of the customers wish to maintain with matches with the induced purchased ability for the long-run period.