[False Economy] Children's Day Gifts, Beware of 'Deceptive' Discounts

(18) Seems Like a Discount, But Actually Purchased at Regular Price

Editor's NoteMany people thought they were engaging in smart economic activities to get better deals, but it often turned out to be a misstep. When consumers are deceived by corporate marketing or blinded by momentary gains and make wrong decisions, they end up being the ones who suffer. We aim to examine economic activities where people misjudge everyday situations and make costly mistakes.

Yumin Kim (37) could hardly believe her eyes while preparing a Children's Day gift. The price of toys had risen sharply within just a few days. Checking parenting cafes, she easily found posts saying, "Toy prices increase as Children's Day approaches. Preparing early is the wise way."

Retailers like Homeplus, Coupang, and Musinsa Kids are running various discount events both online and offline to capitalize on the 'Family Month' season. However, instead of offering genuine Children's Day discounts, some set higher initial prices, so consumers need to be cautious when purchasing.

Arbitrary List Prices... Sellers Emphasizing Only 'Discounts'

It is a misconception that online purchases are cheaper than offline stores. Online sellers often set higher initial prices than offline stores but apply steep discounts.

According to Naver search, one online seller lists the initial price of the 'Catch! Tinyping' figure as 80,000 KRW but sells it at an 85% discount for 11,900 KRW. Another online seller shows the same product with an initial price of 34,000 KRW and sells it at a 62% discount for 12,900 KRW.

Meanwhile, Lotte Mart, an offline store, lists the same product with an initial price of 11,900 KRW and sells it discounted at 9,500 KRW. Consumers who think they got a good deal buying online at a 62% discount for 12,900 KRW may be mistaken, as it is not cheaper than the offline price. Since initial prices and discount rates vary between online and offline sellers, it is necessary to search and compare carefully.

Issues with Changing Price Displays

Photo by Naver Cafe Capture

A member of a parenting cafe shared that after purchasing LEGO, she was later notified of a cancellation due to product stockout. When she tried to buy again, she noticed the price had increased within a few days. A product she could have bought for around 60,000 KRW was eventually purchased for 70,200 KRW (list price 82,000 KRW). Out of curiosity, she checked the sales page two days later and saw the price had risen to 83,700 KRW (list price 93,700 KRW). In just two days, both the list price and the discounted sale price had increased by over 10,000 KRW.

Professor Eunhee Lee of Inha University explained that setting a high initial price and then applying a large discount to disguise the actual price is known as the 'priming effect.' She advised, "If consumers do not thoroughly compare prices, they may think the product is cheap just by looking at the discount rate. It is important to compare carefully."