In today's world, buying a product or service from a major brand is about more than just making a purchase. Large companies carefully study customer behavior and use marketing, pricing, and advertising strategies to influence buying decisions and build long-term customer loyalty.
Whether you shop in a supermarket, browse an online store, or use a digital service, many of the choices you see are designed to encourage spending. Understanding these business tactics can help you make smarter decisions, avoid unnecessary expenses, and protect your money.
In this article, we'll explore 12 common strategies that some of the world's biggest companies use to grow their business and influence customer behavior.
how big companies influence customers
1 Planned Obsolescence in Consumer Electronics
Planned obsolescence is a business strategy in which companies intentionally design their products to become slow or useless after a certain period. Large technology and electronics companies use this method on a very large scale. When your smartphone, smartwatch, or laptop suddenly starts to slow down or its battery begins to drain quickly after two or three years of use, it's not just a coincidence. It's part of the company's predetermined strategy to force you to buy a new model.
The company's new software updates are usually designed with only the capabilities of new devices in mind. When these heavy updates are installed on older devices, the device's performance slows down. At the same time, more pressure is put on the device's internal components, which increases battery consumption. Furthermore, modern electronic devices are designed to be difficult to repair. For example, the device's battery is glued inside in such a way that the average customer or local technician cannot easily replace it.
When the cost of repairing an old device approaches the price of a new one, the buyer finds it better to purchase a new model. In this way, companies get their customers ready to buy a new product every two or three years. This cycle continues and keeps the earnings of large companies growing. If devices were to last for many years without any problems, the companies' annual sales could decrease. This strategy doesn't just affect the customer's wallet; it also has a very negative impact on the environment, as a large amount of electronic waste is generated every year.
2 The Economics of Shrinkflation
Shrinkflation is a subtle and clever pricing strategy used by companies that produce food and everyday goods. When the cost of raw materials, transportation, or general inflation rises in the global market, companies avoid directly increasing the selling price of their products. Instead, they quietly reduce the weight or quantity of the contents in the package. The main reason for adopting this method is that customers quickly notice a direct price increase and start looking for cheaper alternatives.
However, the slight reduction in the package's weight does not easily catch the attention of the average consumer. A large company can keep its selling price exactly the same for years. But it cuts the total amount inside the package by ten to fifteen percent. The outer design of the packaging is kept so that it looks just as big as it did before on the shelf. For example, the amount of air in snack packets is increased, or empty space is left inside the boxes so that the package looks full from the outside.
This is done so gradually and subtly that even regular customers don't notice the change for years. Companies save their profits this way without losing customers. This method has been so successful in the international retail market that today, almost every brand, big and small, uses it. Even when you think you're paying the same old price for your favorite items, you're actually getting less for your money.
3 Dark Patterns and Digital Subscription Models
Dark patterns are crafty designs on digital websites and mobile apps that are meant to mislead customers into making decisions that aren't in their best interest. They are widely used by online shopping sites, booking apps, social media, and video streaming companies. When you sign up for a digital service, the process is made to seem very easy and can be completed with just one click. But when you want to cancel that service, the path is made very difficult and confusing.
In the name of a free trial, companies take your card information right at the start. As soon as the free trial period ends, the company automatically starts charging your account without any notification. The option to cancel the service is often placed in a very deep and hidden part of the website. In some cases, you are required to call customer care or fill out complicated forms to cancel the service.
Additionally, when you're booking tickets or items online, some extra services are automatically added to your bill without your permission. For example, travel insurance or express delivery fees are tacked on. If you don't carefully review every item before paying, you'll end up paying for services you didn't need.
4 Algorithmic and Dynamic Pricing Models
Dynamic pricing is a modern pricing system that operates on computer codes and automatic algorithms. Online shopping companies, airlines, hotel booking apps, and cab services make extensive use of this system. In this system, the price of a service or product never remains the same. The price changes every few minutes based on market demand, time, the customer's location, and their previous searches.
When you repeatedly search for a specific flight ticket, hotel room, or item on the internet, the system understands that you are in great need of that item. Companies collect this data through cookies and device information. As soon as the system senses your need, it increases the price of that item. The goal is to make you book immediately at a higher price, fearing that it will increase further.
Additionally, customers who live in expensive areas or use high-end phones are sometimes shown the same service at a higher price. The main goal of this algorithm is to extract the maximum amount of money from each customer based on their ability to pay. As a result, the average customer can never get a true sense of the item's actual price.
5 Decoy Effect and Price Anchoring Mechanisms
Price anchoring and the decoy effect are two very effective psychological techniques used to increase the sales of expensive items. In price anchoring, companies first plant a very high price for an item in the customer's mind. When a slightly cheaper option or a discount on that same item is then shown, it starts to seem like a huge bargain to the customer.
In the decoy effect, companies deliberately present customers with three different options. The first option is small and inexpensive, the second is medium and slightly more expensive, and the third is the largest and costs only a little more. In this entire scheme, the middle option is intentionally designed to appear like a bad deal.
Upon seeing this, the customer dismisses the middle option and, without much thought, chooses the most expensive and largest option. This model is used for movie theater concessions, coffee shops, mobile data plans, and software company pricing. The customer feels they have made a wise choice, when in reality, they have purchased the most expensive item according to the company's plan.
6 The Illusion of Choice in Retail Markets
When you go to a large supermarket or shopping mall, you think you have hundreds of different brands to choose from. However, this great variety is often just an illusion. In reality, most of the world's famous products belong to just a few large parent companies.
This is especially apparent in the personal care, beverage, canned food, soap, and clothing industries. The different water brands, juices, soaps, shampoos, and snacks sold under different names in a store are actually just different brands of the same two or three large companies. Even if you buy a product from one brand instead of another, your money still ends up going to that same big company.
This situation gives large corporations the power to maintain complete control over market prices. When there is no real competition in the market, prices for goods tend to rise rather than fall. Companies use different brand names and packaging to attract people from different income brackets, while the actual owner of all of them is the same.
7 Manufactured Scarcity in Marketing
Manufactured scarcity is a marketing technique in which companies intentionally limit the supply of a product. Its main purpose is to create an artificial demand and craze for that product in the market. Luxury clothing, expensive smartphones, and brands that make special cars and watches make heavy use of this method.
When a major company announces that only a few pieces of a new product are available or that it will be on sale for only a few hours, it creates a fear of missing out in the customer's mind. This pressure and fear causes the customer to make an impulse purchase without thinking rationally about their need for the product or its high price.
These companies can easily produce more goods with their large factories. But doing so would destroy the exclusivity of the product. By intentionally keeping supply below demand, these companies succeed in keeping the price of the product several times higher than its actual cost.
8 Consumer Data Monetization Strategies
In today's digital age, when a major tech company or app offers its services to you completely free of charge, you should understand that you are not the customer; your information is the product being sold. Tech companies analyze your internet usage every moment. By studying your searches, location, shopping habits, and preferences, a digital profile is created for you.
This collected data isn't just limited to showing you ads. This valuable data is sold to other companies and data brokers for a hefty price. Financial institutions and insurance companies use this data to measure your risk level. For example, data related to your lifestyle and food purchases could affect your insurance premium rates in the future.
Most people agree to an app's terms without reading them when they first launch it. Tech companies take advantage of this legal consent to make huge profits from your personal data every year. This trade in your private information has become the biggest and most profitable source of revenue today.
9 Hardware and Software Repair Restrictions
Placing repair restrictions is another hidden strategy used by manufacturers. Its main purpose is to continuously earn money from the customer even after selling the product. Electronics and large machinery manufacturers lock the software and parts of their products in such a way that no outside technician or customer can fix them themselves.
These companies use special screws, unique tools, and coding in their products. If an outside person tries to open or repair it, the device's software might stop working, or its warranty could be voided. Additionally, companies do not readily make their genuine parts available on the market.
This policy forces the customer to go to the company's own service center, where the repair costs are very high. This practice not only puts a heavy burden on the customer's wallet, but it also causes electronic waste to grow rapidly from discarded items. Frustrated by the expensive parts and repair costs, people often feel it's better to just buy a new product.
10 Loss Leader Pricing in Supermarkets
Loss leader pricing is a very clever strategy adopted by large stores and supermarkets. In this method, companies offer some very popular and everyday essential items at a price lower than their actual cost. At first glance, it seems that the company is losing money on this deal.
However, the real purpose of this discount is to lure as many customers as possible into the store. Once a customer is enticed inside by the low-priced item, they don't just buy that one thing and leave. They also end up purchasing their other necessary items, which are either at a normal price or more profitable for the store.
The small loss the company takes on that one cheap item is easily covered by the larger profits from the sale of other goods. Supermarkets also design their store layouts accordingly. They place the cheapest and most essential items at the very back of the store, forcing customers to walk through the entire store to get to them.
11 Frictionless Payment and Behavioral Psychology
Making the payment process completely seamless is a major quest for fintech companies and e-commerce giants. When a person takes cash out of their pocket to pay for an item, they feel a psychological barrier. This barrier helps prevent them from making unnecessary purchases.
Technologies like digital wallets, auto-debit, biometric scans, and card tapping have almost completely eliminated this barrier. When all it takes to buy something is a fingerprint or a tap on the screen, the brain doesn't register that real money has been spent from the account.
Additionally, features like pay later further exacerbate this situation. Companies make the spending process so easy and fast that customers easily exceed their budget limits. This easy payment method greatly encourages impulse purchases.
12 Social Proof and Artificial Urgency Tactics
Creating a sense of social proof and artificial urgency is a very effective way to increase online sales. When people see that others are buying a product very quickly, they also tend to trust it blindly. Online shopping sites take full advantage of this customer habit.
Messages that constantly appear on websites, such as "Five other people are viewing this right now" or "Only two items left," are often generated by automated software. The sole purpose of these messages and timers is to create a sense of urgency in the customer's mind. The goal is to prevent the buyer from taking the time to compare prices or think.
Additionally, manipulating product reviews and ratings on the internet is also part of this strategy. Many companies write positive reviews to improve their image. This manufactured trust makes the average customer willing to buy even ordinary products at a higher price.
How Smart Consumers Can Protect Themselves
It is entirely possible to become a smart and vigilant shopper amidst all these corporate strategies. The very first step is to bring a little pause back into your shopping. Never use options like "Buy Now" on the internet. Take at least twenty-four to forty-eight hours before buying any non-essential item to let your initial excitement subside.
The second step is to not just look at the total price of an item when making a choice, but to compare the actual rate per gram or per liter. This small habit will help you immediately catch the effects of shrinkflation and avoid being cheated. Always keep the auto-debit option turned off for digital services and apps.
The third step is to always be cautious about protecting your personal data. Don't give any app unnecessary permissions and keep clearing your cookies. When companies can't easily access your data, their dynamic pricing tactics won't be effective against you. Always go shopping with a list of what you need.
Frequently Asked Questions
What is the main goal of dark patterns in e-commerce?
The main objective of dark patterns is to mislead customers into unknowingly taking actions that financially benefit the company. This includes adding hidden fees or making the process of canceling a service difficult.
How does price anchoring influence buying decisions?
Price anchoring establishes a high-value reference point in the customer's mind. When the company then shows a slightly lower-priced option, the customer perceives it as a great deal and buys it immediately.
Why do companies restrict the right to repair?
Companies restrict the right to repair so that customers go to their official service centers, buy expensive parts, or purchase new items instead of getting old ones repaired.
Is shrinkflation legal in international retail markets?
Yes, shrinkflation is completely legal in international markets as long as the manufacturer clearly prints the new correct weight and quantity on the outside of the package.
How can consumers avoid impulse buying caused by digital payments?
To avoid impulse purchases caused by digital payments, set a fixed budget, turn off one-click pay, and delete saved card details from shopping apps.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or professional business advice.