Aniruddha Pangarkar
Associate Professor of Marketing, Austin E. Cofrin School Of Business, The University of Wisconsin-Green Bay
How can consumers distinguish between real Black Friday deals and marketing traps?
Black Friday is that time of the year when consumers are in the enthusiastic mood for shopping. While it is good to be excited and motivated about shopping, it is equally important to be cautious and discerning. First, do your research on a specific product that you plan to buy (whether it’s electronics or apparel). Compare and contrast the price across multiple genuine retailers. If a deal sounds too good to be true, read the fine print, because it really may have certain conditions (such as the model or product being obsolete or phased out or a slow-moving item that retailers would like to dispose of) that may not be favorable for you Check the price of the item before it was marked down for Black Friday. Some retailers engage in promotion or sales tactics that make it seem like you are getting a great deal, while in reality, it may not be a very attractive discount. Such items can be taken off your shopping list so that you can focus on the really good deals and super discounted items and merchandise that offer value for your hard-earned money. Do not get tempted by online deals and marketing tactics- sometimes when you leave your shopping cart online, a retailer might offer you an additional discount to fulfill your payment and buy the online items immediately. Do it only if you need it- do not be tempted by the additional discount.
How can consumers protect themselves from overspending on Black Friday?
While shopping for Black Friday (whether online or at a retail store), keep a shopping list handy, because it is easy to make impulse purchases (buy one get one free kind of deals or a hoodie that says 50% discount, but is not something that you really need right now) and then experience cognitive dissonance (regret) later. Spend your money judiciously only on the items that are really bang for your buck and those that you need the most. Set a fixed budget and list of purchase items, and adhere to it, regardless of how good a deal is (your favorite perfume is marked down 30% at Macy’s, but ask yourself the question, do you really need another bottle of that Armani perfume or can it wait?). Practice minimalism- this does not mean you do not make purchases. Minimalism means you buy only those items that you are really in need of, and which would make you happy, rather than just sitting in your closet for a year without being used. Review the return policy for retailers- that way you are sure what you need to buy and it helps you stay committed and focused on your budget. If you are buying gifts for family and friends, make a list of those individuals and strictly stick to your budget.
Which day do you believe people get the best deals: Black Friday, Cyber Monday or another day? Why?
This really depends on the type of product you are buying (apparel, accessories, electronics, appliances etc.). Typically, Black Friday’s deals are online and in stores, while Cyber Monday is exclusively online. If you are buying electronics and prefer going to the store and inspecting the physical product like a television or laptop, then it is Black Friday that you should target. If you are wanting to buy tour favorite Tommy Hilfiger jeans or American Eagle joggers, then maybe Cyber Monday is good for you, especially if you know what size you want to buy without trying it on. My two cents- make a list of the items and products you need. Keep a lookout for the best deals- buy it as soon as you see the deal is good. Don’t wait for Cyber Monday if you find a good deal online or in stores earlier. These days retailers often start advertising for good deals in early-November, well before Black Friday even begins. Moreover, keep in mind that you can buy online and return in-store (if there is a store for that retailer in your city). Many retailers offer extended return periods and free return shipping- so the risk is really not high to buy something and return it later.
What tips do you have for maximizing bargains on Black Friday?
As mentioned earlier, do your research, compare and contrast across retailers (if you want Nike Jordan sneakers, then look on the Nike website, Foot Locker, Dick’s Sporting Goods, and other similar retailers), search for online coupons, sign up online with retailers that offer a first-time discount, and be careful of doorbuster deals (they may not seem what they are if you do adequate research). It is important to also track prices after purchase, since you may be eligible for a price adjustment within a few days after purchase, if the price drops down. Some retailers also match prices, so you could also use that strategy to maximize discounts and bargains.
What types of products are better to buy on Black Friday versus Cyber Monday?
Typically, Black Friday deals are good for electronics, home appliances, mattresses, furniture etc. while Cyber Monday is good for clothes, accessories, fashion products, cosmetics, software, headphones, video games, charging cables etc. Again, this is not a fixed template. If you find a good deal, compare and contrast prices across retailers and buy it. Returns are always an option at a later stage, if you find a good deal on Cyber Monday for something you purchased on Black Friday.