Category Archives: Economy

The Psychology Behind Black Friday/Cyber Monday Sales

Consumerism, Economy, News

Sales sweep the holiday season, with every year seemingly growing more intense. Why do we get so caught up in the sales at specific times of the year?

There are several psychological phenomena that pull us into the rush of Black Friday and Cyber Monday. Retailers know that “loss aversion” is an intuitive reaction; consumers are more worried about avoiding loss than making gains. Short-term sales trigger a deep need to take advantage of something in order to avoid a loss. Additionally, retailers know that once consumers buy something, they are unlikely to return it or “lose it,” and they play on this by offering trial periods and free returns.

Another psychological factor to consider is the “restraint bias.” This comes into play when, for example, someone looks at details online on Cyber Monday, intending to buy one or two items. However, suddenly all the deals are appealing and too good to lose, and that person buys way more than intended. People overestimate their own willpower and impulse restraint, similar to overeating at a buffet. We don’t want to lose the opportunity to take advantage of a wide variety of what is available.

Finally, the “bandwagon effect” is a key in the lure of Black Friday sales. With the prominence of advertisements splashed across news outlets and social media, we start to perceive everyone else grabbing these good deals and want to join them.

A useful mental tool in approaching sales this time of year is deciding on purchases in advance and buying online instead of in a store. Save the pages of the item you chose, and visit the site on Black Friday or Cyber Monday, and do not buy something else if your desired item is not on sale.

Although Black Friday and Cyber Monday have passed, the holiday sales continue and it’s not too late to set a realistic budget for the remainder of December. Ultimately, the deals this time of year are often too good to be true, making it easy for us to overspend and overindulge. The best way to manage finances is to make decisions ahead of time and not allow ourselves to be swayed by other offerings.

Peter Arnell Gives the Fontainebleau a New Look

Art, Communications, Economy, Lifestyle

Peter Arnell, a renowned brand consultant and designer, has played a crucial role in redefining the brand identity of the Fontainebleau Las Vegas.  As the Chief Brand and Design Officer for Fontainebleau Development, Arnell was tasked with modernizing the hotel’s brand identity as it approached its 70th anniversary. His work led to the creation of a new logo for Fontainebleau, which was inspired by the marble bowtie motif from the Fontainebleau Miami Beach lobby. This new design element is now integrated across various customer experiences at the resort.

To unveil this updated brand identity, Arnell and his team conceptualized a special event that coincided with the New Year’s Eve ball drop in Times Square. Collaborating with Countdown Entertainment, they developed an animation that incorporated the new Fontainebleau logo, which was showcased during the midnight countdown. This strategy aimed to introduce the refreshed brand identity to a global audience, linking it with the historic and iconic event of Times Square.

The event featured performances by Paul Anka and Post Malone, representing the hotel’s historical and contemporary cultural relevance. These performances were part of the broader effort to highlight the opening of Fontainebleau Las Vegas and the brand’s ongoing relevance. A special countdown after midnight focused on the Fontainebleau’s 70th anniversary, featuring the new brand identity animation on the Times Square ball, which will remain visible throughout the year.

The Plight of the Unused Gift Card

Consumerism, Economy

According to the National Retail Federation, Americans were predicted to spend roughly $30 billion on gift cards during the 2023 Christmas season. While these cards to restaurants and retailers make great gifts, more than $10 billion worth will remain unused.

In 2010, a federal law mandated that a gift card cannot expire for at least five years from the purchase date. Certain states have even longer time requirements. And though cards don’t expire quickly, some will accrue fees if they are not used within a year, and cards from stores that go out of business will not be able to be redeemed. So using gift cards soon after receiving them is a good idea. To encourage immediate spending, retailers established National Use Your Gift Card Day, on the third Saturday of January.

What happens to the money on unspent gift cards depends on where you live. Retailers in 19 states are mandated to return the funds to consumers, and money that cannot be returned must be spent on initiatives that benefit the public. According to Misha Werschkul, executive director of the Washington State Budget and Policy Center, finding the owners of unspent gift cards is challenging. Consumers can search for their name on MissingMoney.com to see if they are entitled to money from gift cards.

Companies do benefit from those who lost their gift cards or forget to redeem them. In 2022, Starbucks reported over $200 million in revenue in cards that were not cashed in. Consumers who think that using the cards as intended is far better than seeing the money returned to the public should be sure to participate in National Use Your Gift Card Day.

Hershey Looks to Halloween to Boost Chocolate Sales

Companies, Consumerism, Economy, Lifestyle

Hershey, the maker of popular candies like Reese’s, Kit Kat, and Twizzlers, is gearing up for Halloween sales. This year, it appears that customers are shopping for trick-or-treat candy closer to the holiday. Last year, due to supply chain and availability concerns, many customers bought their Halloween candy early. Although it’s too early to predict this year’s outcome, so far, Halloween candy sales have been slower than last year.

As Halloween approaches, Hershey is hoping for a strong performance this weekend to meet its sales targets. In recent years, Halloween has become a critical period for the company, accounting for 25-30% of its annual business.

Hershey is experiencing difficulties on several fronts. Cocoa prices are on the rise, supply chain issues have plagued the cocoa industry, and many consumers are now facing budget constraints and are more sensitive to pricing.

To cater to budget-conscious consumers, Hershey is expanding its presence in dollar stores and discount outlets. They are also exploring the option of selling smaller-sized candies at more affordable prices.

But Hershey executives remain positive that Halloween will bring the candy buying boom that the company needs. Last week, CEO Michele Buck said, “With Halloween next Tuesday, we still have several important selling days to go”.

Summer Air Travel is on the Rise

Companies, Economy, News, Transportation Industry

Air travel may finally be recovering from the COVID-19 pandemic. Although some experts predicted that rising inflation would keep vacationers close to home, Delta Airlines reports a 17% increase in demand for flights in the quarter that ends in June.

Despite rising fares, according to Expedia, there has been a 25% increase in flight searches for summer trips, and an even larger increase in searches for international travel to Europe and Asia.

Airlines are also feeling hopeful about the return of corporate travel. Now that offices are reopening after the pandemic, business people are once again willing to fly to meetings. This summer, a high percentage of seats are expected to be filled by people traveling for work.

The next challenge for the airlines will be to ensure they are prepared for this increase in travelers. Throughout the past year, the airline industry was plagued with thousands of cancellations due to bad weather and internal issues. To ensure that passengers arrive at their destinations in a timely manner, Daniel Janki, CFO of Delta, said that Delta has devoted time and energy to “ensuring that we have the right resources in the right places with the right level of training.”