Black Friday – deal, or no deal?
By: Communications
It might feel like it has already been happening for weeks, but ahead of Black Friday tomorrow and Cyber Monday next week, an academic at the University of East Anglia (UEA) offers advice on navigating the sale period for consumers and explains what it means for retailers
“With Black Friday sales in full swing, consumers should be cautious about whether promoted discounts are genuine or phoney bargains,” said Ratula Chakraborty, Professor of Business Management at Norwich Business School.
“Bargain hunters should be wary about unscrupulous retailers that have deliberately raised prices in the weeks running up to the sale, only to cut prices back to their previous level. Websites like PriceRunner or CamelCamelCamel can help when they show previous prices to let you work out whether the discount is genuine.
“Shoppers should also be careful about eye-catching discounts only applying to selected ranges, that might be for goods that either are old stock or about to be replaced with newer versions, or reformulated with cheaper components. So always check the model number to make sure it exactly matches the model number of the product you have your heart set on.
“Having a list, doing your homework before setting out on your spending spree can help you save money and avoid disappointment. The best advice is to buy only what you need, at the price you can afford, and when it looks like a real bargain.
“Don’t give in to pressure tactics, clear cookies on your computer and be aware of dynamic pricing. Beware of the illusion of scarcity too. Keep monitoring the price even after Black Friday and you might get a very good deal.”
Prof Chakraborty added: “Typically, Black Friday deals can be better for big ticket items. Retailers want to sell these at a lower price as loss leaders in the hope you will buy all the accessories and therefore be quite profitable for them.
“A smart customer will be able to get the best deal by comparing prices and Black Friday bundles, for example gaming consoles and accessories, can work very well as buying items separately would be more expensive. And there is an excitement in getting everything together.
“We also can’t ignore Cyber Monday, as originally for tech items now it is simply an extension of Black Friday and sometimes prices seem further reduced.
“If you have an idea of what you want to buy, buy it, keep the receipt and if a better deal is available ask the retailer for a refund of the difference, especially where there is a price match guarantee.”
Prof Chakraborty said the sale also helps businesses in the run up to Christmas, with retailers promoting Black Friday deals weeks in advance of the day itself.
“The period of Black Friday is now stretched out from a high-stakes day of deep discounts to more of a strategic month-long engine that drives revenue.
“It’s not only about giving shoppers a longer buying season but a strategic decision to create a ‘Black Friday Creep’. It captures the early bird shopper and keeps a steady stream of revenue rather than a short burst. This also helps operational efficiency, as it spreads out demand over a longer period, and prevents risks of website crashes, unhappy customers with unfulfilled orders and staff stress.
“Creating a month-long event or ‘buzz’ keeps the brand in the customers minds and collection of data on individual hits, products in baskets etc. allows the retailer to gather a treasure trove of data.
“It clears out old inventory too and space for Christmas merchandise, and pulling sales forward also helps in preventing ‘deep discounts’ that follow Boxing Day.
“However, retailers need to be smart, as otherwise there is a chance that customers are put off if bombarded by emails and texts.”
Prof Chakraborty’s research centres on marketing and retailing, embracing business, legal, economic and public health perspectives. Her collaborative work has contributed to and been cited widely in policy reports, including those for the European Commission, European Parliament, UK Competition Commission, and UK Department of Health. She has also advised regulators and policymakers on supermarket competition.
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