Understanding Online Retail Tactics

The video discusses the rise of online retail and the tactics used by companies to increase consumer spending. It highlights three main strategies: gamification, scarcity, and installment payment plans. Gamification uses game-like elements to engage consumers, scarcity creates a sense of urgency, and installment plans make purchases seem more affordable. The video offers tips to counteract these tactics, such as unsubscribing from promotional emails, using incognito browsing, and avoiding installment plans. By applying these strategies, consumers can regain control over their shopping habits.

What was the total amount spent by shoppers online in 2019?

• 5.0 trillion dollars

• 4.2 trillion dollars

• 3.8 trillion dollars

• 2.5 trillion dollars

Which of the following is an example of gamification used by online retailers?

• Displaying customer reviews

• Providing a virtual wheel to spin for discounts

• Offering free shipping

• Sending personalized emails

What psychological effect does gamification have on consumers?

• Decreases interest in shopping

• Increases dopamine levels

• Reduces spending

• Promotes brand loyalty

What is a common tactic used by online retailers to create a sense of urgency?

• Offering free returns

• Offering loyalty rewards

• Providing detailed product descriptions

• Displaying a countdown timer for items in the basket

How can consumers combat the scarcity tactic used by online retailers?

• Sign up for newsletters

• Purchase items immediately

• Use a credit card for purchases

• Sleep on the decision and revisit the site later

What is a potential downside of using installment payment plans for non-essential items?

• Improved credit score

• Immediate ownership of the item

• Increased likelihood of buying more items

• Reduced interest rates

Why might installment plans be considered predatory?

• They offer high discounts

• They require immediate payment

• They encourage debt accumulation

• They are only available for luxury items

What is a recommended alternative to using installment plans for finding discounts?

• Waiting for seasonal sales

• Signing up for store credit cards

• Using browser plug-ins to find deals

• Purchasing items in bulk

What is the main benefit of using the tips provided in the video?

• Regaining control over the shopping environment

• Finding the cheapest products

• Increasing online spending

• Avoiding online shopping altogether

What is the overall message of the video regarding online shopping?

• Retailers should stop using marketing tactics

• Online shopping should be avoided

• Online shopping is always beneficial

• Consumers should be aware of tactics and shop mindfully