Yes, it is that time of year, when people go shopping, because, well, they are supposed to shop. New York magazine has a great article that explores just how crazy this is Why Black Friday Is A Behavioral Economist’s Nightmare:
The big problem with Black Friday, from a behavioral economist’s perspective, is that every incentive a consumer could possibly have to participate — the promise of “doorbuster” deals on big-ticket items like TVs and computers, the opportunity to get all your holiday shopping done at once — is either largely illusory or outweighed by a disincentive on the other side. It’s a nationwide experiment in consumer irrationality, dressed up as a cheerful holiday add-on.
It then goes on to explore the retailing ‘tricks’ that are employed:
The doorbuster: The doorbuster is a big-ticket item (typically, a TV or other consumer electronics item) that retailers advertise at an extremely low cost. (At Best Buy this year, it’s this $179.99 Toshiba TV.) We call these things “loss-leaders,” but rarely are the items actually sold at a loss. More often, they’re sold at or slightly above cost in order to get you in the store, where you’ll buy more stuff that is priced at normal, high-margin levels.
That’s the retailer’s Black Friday secret: You never just buy the TV. You buy the gold-plated HDMI cables, the fancy wall-mount kit (with the installation fee), the expensive power strip, and the Xbox game that catches your eye across the aisle. And by the time you’re checking out, any gains you might have made on the TV itself have vanished.
Implied scarcity: This is when a store attempts to drum up interest in an item by claiming “limited quantity” or “maximum two per customer,” which makes us think we’re getting something valuable when we may not be. It’s a staple of deceptive marketing, and at no time in the calendar year is it in wider use than on Black Friday. (There is also actual scarcity on Black Friday — when stores carry only a 50 or 100 of an advertised doorbuster item — which also introduces a risk that you’ll be 51st or 101th in line and waste your time entirety. Both are bad.)
I spent Black Friday at home, with my family, working through my to-do list. Aside from lunch, we didn’t venture out to buy a thing.