Israeli Supermarkets Use Tactics to Increase Customer Spending
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Israeli supermarkets are using tactics like shrinkflation, fake discounts, and strategic store layouts to increase customer spending without raising prices. A Tel Aviv University study found price increases at Carrefour despite advertised discounts. Experts recommend comparing unit prices and considering store brands to save money.
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- Israeli supermarkets use shrinkflation and fake discounts to increase customer spending.
- A Tel Aviv University study revealed price hikes at Carrefour despite advertised discounts.
- Store layouts strategically place essential and impulse items to encourage more purchases.
- Experts advise comparing unit prices and considering store brands to save money.
Israeli supermarkets are employing various marketing strategies to boost average customer spending without directly raising prices, according to a report by Channel 9. These tactics include shrinkflation, where product sizes or weights are reduced while prices remain the same, effectively increasing the cost per unit. Customers also face artificially inflated prices for "discounts" and promotions like "buy one, get one free" that encourage over-purchasing.
A study from Tel Aviv University examined Carrefour's "Israel Basket" program, finding that while prices on 100 advertised items decreased by an average of 35%, prices actually rose in 46 out of 76 categories researched. Store layouts also contribute to increased spending, with essential items like bread and milk placed in distant aisles, premium products at eye level, and impulse buys offered at checkout counters.
Experts advise shoppers to compare prices per 100 grams or milliliters, check the total cost of their basket, and consider store-brand products to mitigate these effects.
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