Tired Double 11:Facts Don’t Affect Our Decisions

11.11, China’s largest consumer shopping carnival, foreign friends familiar with China’s consumption environment may have heard of it. And this year’s Double 11, because of its marketing strategy is extremely test of consumer IQ, probably The most consumers criticized the session.

For this promotional chaos, China’s official Xinhua news agency author commented that why can not be a tribute to the “audience half off” and as the initiator of the 11.11, Alibaba founder Jack Ma said in an interview: ” In fact, double 11, we did not make any money. We want to bring happiness to consumers and businesses.” ” In fact, double 11, we are very tired, the logistics industry is also tired , Technology is also tired, the bandwidth is tired, Alipay is also tired … ” Tired Jack Ma faded, a full load of more than 4,500 pairs of double 11 delivery truck fire in China’s high-speed, express all was burned into the soil. The driver who jumped off the truck promptly said: “What kind of cargo was burned down is not exactly clear to me either. I only know that it includes furniture such as beds and tables.”

Similar to Black Friday, Double 11 is undoubtedly the most popular promotional festival in China. In recent years, e-commerce merchants have frenziedly created promotion festivals, causing consumers to become disgusted with the freshness of sales promotion. The promotion is also more and more inattentive, there are routines behind each offer, “down payment” is to lock customers in advance, “99 minus 10” is to allow customers to get together, “shopping brand lottery” is to brand businesses diversion.

However, the promotion will be 50% of the audience, consumers will not be involved. These promotions can be said to help “chop hand” save the golden link, in fact, more advertising and traffic entrance. A participant in the double eleven stores said: “There is no preferential diversion, we have no traffic to buy, no traffic and volume, the customer will never find us” merchants participate in promotions, is to e-commerce platform to pay ” Protection fees” .

As in previous years, double 11 activities, many home appliances were first burst price and then cut prices, in fact, is the use of preferential to distinguish between groups to buy. In the end everyone is spending here, is the ultimate goal.

How many people understand that the discount is actually synonymous with price increases, none other, the best camouflage of business inventory management, you think the benefits, many times it is only a business price increases, interest-free loans to consumers synonymous. As the “theoretical basis” of Double 11, a pioneer figure in modern behavioral economics and behavioral finance in the United States.

Richard Thaler, winner of the 2017 Nobel Prize in economics, realistically restores people’s daily routine in his behavioral economics Economic decision-making process in life. Behavioral economics allows those seemingly reasonable, carefully try to figure out ridiculous irrational economic behavior has not escaped. It convincingly demonstrates how we were misleadingly misdirected by our own “emotional differences in temperature,” perceptual perception, and the psychological marketing of businesses.

Consumers buy their home goods “at a good value” and doomed their destiny from the day they were bought, but usually people would choose to clean it up after a few years because Sunk Costs ( Sunk Costs, Refers to the costs incurred that have been incurred and can not be recovered ) will decrease over time, that is “pay devaluation.” Business wise to put the backlog of inventory into the consumer’s home inventory. Rationally considering sunk costs, you can easily dispose of those over-consumption “booty”, focusing on immediate needs. But “rational” is not easy to talk about. Often times, facts do not affect our decision.

Even if we have read his Misbehaving, but return to the real life, each of us not only is not rational, but also make a lot of perceptual “errors”, we have “emotional temperature difference”, stereotyped, cognitive Prejudice, as well as misjudgment based on information asymmetry. Excessive reason and choice, will make life lose interest. Excessive consumption and irrational decision-making, also let us pay for the bitterness of their own.

(Terry)

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