How Return Policies Encourage You to Spend Money
When in doubt about a purchase, there are five words that usually push you to buy: “I can always return it.” This may be true, but retailers are definitely using this mindset to their advantage, and their refund policy subtly encourages you to spend more.
Author articles on money Josh Becker notes that 91% of consumers believe that the policy of the company in respect of return is an important factor in the purchase decision. Becker points out how retailers are using this to their advantage:
The predominant question that retailers ask when developing their return policy is “Which policy brings the most profit to our business?” … This is not exactly a win-win situation for the consumer. [The consumer] does not take into account the time, energy and gas required to return the product, if he so chooses. And he doesn’t think returning the item will require him to re-enter the very store that convinced him to buy what he doesn’t need at all.
In other words, with flexible return policies, stores are encouraging you to spend money. And if you need to return an item, they will take you back to the store. Obviously, this does not mean that you are necessarily going to spend money, it is simply something to keep in mind when making purchasing decisions. For more information, skip to Becker’s full article below.
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