Aussie chain's sneaky pricing tactic scrutinised by a consumer expert!
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In the competitive world of grocery retail, supermarkets are always looking for ways to entice customers to spend more.
However, one Australian grocery chain, Harris Farm, has recently come under fire for a pricing strategy that some claim is a 'trick' designed to encourage customers to buy more than they need.
Harris Farm, a popular fruit and vegetable market, was called out for offering a $6 bundle deal for two punnets of cherry tomatoes.
However, upon closer inspection, the individual price of one packet was $3 each—meaning there was no financial advantage in buying the bundle.
Similar examples were found with cucumber and mushroom bundles, leading Macquarie University Professor Jana Bowden to label the move a 'perceptual trick'.
However, Harris Farm Markets has defended its marketing strategy, stating that its unique approach allows 'everyone' to access budget-friendly products without sanction as part of its 'we won’t sting you' approach.
The company argues that by not offering '2-for deals', it stands apart from other supermarkets by not compelling customers to buy multiple items to enjoy special pricing.
‘We understand that some questions have arisen regarding the presentation of our specials, particularly the use of red and yellow tickets, and we welcome this opportunity to clarify our approach,’ a Harris Farm Markets spokesperson said.
The supermarket uses red and yellow tickets to denote specials, a practice it claims to have followed since its inception in 1971.
‘We believe in offering our customers the flexibility to benefit from these special offers without imposing bulk purchases,’ the spokesperson added.
‘This principle stems from the vision of our founder, who believes in ensuring that everyone, regardless of their circumstances, could access quality products at affordable prices without being penalised.’
Despite Harris Farm's explanation, Professor Bowden argues that the prices on the ‘special’ tag still requires additional cognitive effort and attention from the shopper.
‘It is not a “forced bulk purchase”, but it is designed to encourage customers to buy more, and some customers who are not paying close attention during their shop will be coaxed, tricked, mistaken—whatever you wish to call it—into buying more simply because they think the bundle deal is better value than buying a single item,’ she said.
‘Most shoppers will automatically assume they are getting a value-added deal simply because there is a “sale” sign with a bundle two-for-one offer.’
Bowden describes the strategy as a 'trick of perception' and says the store grabs the customer's attention with a coloured sign, but they’re 'coaxed' into adding items.
'Meanwhile the customer didn’t really get a real bundle deal—they just bought more items during their shop,' she remarked.
The reaction from customers has been mixed. While some feel they are being 'fooled' by the advertising, others appreciate the flexibility of getting a discount without buying in bulk.
‘This attempt at trying to fool the customers is the main reason I avoid shopping at Harris Farm,’ said one disgruntled customer.
‘I hate it when businesses play stupid mind games with their customers.’ another said.
‘They are a disgrace and they think their customers are idiots,’ a third commented.
The controversy surrounding Harris Farm's pricing strategy comes as major supermarkets Coles and Woolworths face scrutiny from the Australian Competition and Consumer Commission over alleged deceptive pricing tactics.
The ACCC has warned it will not hesitate to take action against large suppliers who are misleading customers about prices.
As consumers, it's important to be aware of these pricing strategies and to take the time to compare prices and read the fine print.
While it may take a little extra time and effort, it can lead to significant savings in the long run.
What are your thoughts on these pricing strategies? Have you ever fallen for a 'perceptual trick'? Share your experiences in the comments below.
However, one Australian grocery chain, Harris Farm, has recently come under fire for a pricing strategy that some claim is a 'trick' designed to encourage customers to buy more than they need.
Harris Farm, a popular fruit and vegetable market, was called out for offering a $6 bundle deal for two punnets of cherry tomatoes.
However, upon closer inspection, the individual price of one packet was $3 each—meaning there was no financial advantage in buying the bundle.
Similar examples were found with cucumber and mushroom bundles, leading Macquarie University Professor Jana Bowden to label the move a 'perceptual trick'.
Harris Farm Markets was denounced online for their pricing tactics. Image: Facebook
However, Harris Farm Markets has defended its marketing strategy, stating that its unique approach allows 'everyone' to access budget-friendly products without sanction as part of its 'we won’t sting you' approach.
The company argues that by not offering '2-for deals', it stands apart from other supermarkets by not compelling customers to buy multiple items to enjoy special pricing.
‘We understand that some questions have arisen regarding the presentation of our specials, particularly the use of red and yellow tickets, and we welcome this opportunity to clarify our approach,’ a Harris Farm Markets spokesperson said.
The supermarket uses red and yellow tickets to denote specials, a practice it claims to have followed since its inception in 1971.
‘We believe in offering our customers the flexibility to benefit from these special offers without imposing bulk purchases,’ the spokesperson added.
‘This principle stems from the vision of our founder, who believes in ensuring that everyone, regardless of their circumstances, could access quality products at affordable prices without being penalised.’
Despite Harris Farm's explanation, Professor Bowden argues that the prices on the ‘special’ tag still requires additional cognitive effort and attention from the shopper.
‘It is not a “forced bulk purchase”, but it is designed to encourage customers to buy more, and some customers who are not paying close attention during their shop will be coaxed, tricked, mistaken—whatever you wish to call it—into buying more simply because they think the bundle deal is better value than buying a single item,’ she said.
‘Most shoppers will automatically assume they are getting a value-added deal simply because there is a “sale” sign with a bundle two-for-one offer.’
Bowden describes the strategy as a 'trick of perception' and says the store grabs the customer's attention with a coloured sign, but they’re 'coaxed' into adding items.
'Meanwhile the customer didn’t really get a real bundle deal—they just bought more items during their shop,' she remarked.
The reaction from customers has been mixed. While some feel they are being 'fooled' by the advertising, others appreciate the flexibility of getting a discount without buying in bulk.
‘This attempt at trying to fool the customers is the main reason I avoid shopping at Harris Farm,’ said one disgruntled customer.
‘I hate it when businesses play stupid mind games with their customers.’ another said.
‘They are a disgrace and they think their customers are idiots,’ a third commented.
The controversy surrounding Harris Farm's pricing strategy comes as major supermarkets Coles and Woolworths face scrutiny from the Australian Competition and Consumer Commission over alleged deceptive pricing tactics.
The ACCC has warned it will not hesitate to take action against large suppliers who are misleading customers about prices.
As consumers, it's important to be aware of these pricing strategies and to take the time to compare prices and read the fine print.
While it may take a little extra time and effort, it can lead to significant savings in the long run.
What are your thoughts on these pricing strategies? Have you ever fallen for a 'perceptual trick'? Share your experiences in the comments below.
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