A trip to an outlet mall is often a daylong affair—not a problem for retailers, since shoppers tend to spend more once they’ve committed to the expense of getting to a far-off locale. How much more? One study found that visitors spent 79 percent more per visit at outlet centers than at ordinary malls, Soberman says. Tom Meyvis, a marketing professor at NYU’s Stern School of Business, attributes this to a “sunk cost bias” on the part of shoppers. “Once you start investing in something,” he explains, “you want to follow through with it.”
There's more, Smart Money reports.
82 percent of products at outlet centers are made specifically for the outlets. More good tips at the link.
Unfortunately, made-for-outlet products aren’t always on par with their regular-store equivalents. They can be made of cotton instead of wool or lack details like reinforced buttonholes. Inspect tags for the letter F (for factory outlet) and checking the model number of small appliances online (a product modified for the outlet may have a different model number).
About those signs, price tags and coupons touting big discounts (think “60 percent off”).
Researchers say these visual cues plant so-called reference prices—what folks think something is worth—in the minds of shoppers. Because outlet shoppers pay less than the reference price, they end up feeling like they got a bargain. But reference prices can be misleading: An item with a suggested price of $150 may never have sold for that amount anywhere.
Researchers say these visual cues plant so-called reference prices—what folks think something is worth—in the minds of shoppers. Because outlet shoppers pay less than the reference price, they end up feeling like they got a bargain. But reference prices can be misleading: An item with a suggested price of $150 may never have sold for that amount anywhere.
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