Uncover the truth behind Diwali deals: How advertising tactics and market competition can create the illusion of discounts.
Newswriters Research Desk
Abstract
Diwali, India’s festival of lights, is also a peak shopping season dominated by advertising campaigns and competitive marketing. While festive offers and online deals appear to benefit consumers, many promotions employ tactics like pseudo-discounting, limited-time offers, and conditional cashbacks that create the illusion of value. This article analyzes how market competition drives advertising strategies that influence consumer perception, often leading to impulsive purchases. By highlighting behavioral economics insights and marketing practices, this study emphasizes the importance of informed decision-making, ethical advertising, and regulatory oversight to protect shoppers during Diwali.
Keywords: Diwali offers, festive advertising, consumer deception, pseudo-discounting, online deals, marketing strategies, genuine discounts
Introduction
Diwali has become synonymous with shopping festivals, with brands promoting attractive discounts, cashback offers, and limited-time deals. Advertising is central to these campaigns, influencing consumer perception and encouraging spending. However, market competition during Diwali can amplify deceptive tactics, such as inflated prices or selective promotions, making it challenging for consumers to identify genuine discounts (Kotler & Keller, 2022). This article examines how advertising and competition together shape consumer behavior and highlights strategies to navigate festive offers responsibly.
Advertising and Market Competition in Diwali Promotions
During Diwali, retailers and e-commerce platforms leverage advertising to stand out in a crowded market. Tactics include:
- Pseudo-discounting: Inflating pre-festive prices to exaggerate discounts.
- Conditional offers: Cashbacks and bundled deals often limited to certain products or payment methods.
- Urgency and scarcity messaging: Flashy banners, pop-ups, and countdowns create psychological pressure.
These marketing strategies exploit consumer heuristics, making shoppers perceive greater value than actually offered (Kahneman & Tversky, 1979; Nirmala & Singh, 2018).
Consumer Response and Behavioral Implications
Festive advertising significantly impacts consumer decisions. Impulsive purchases often result from perceived scarcity or high discounts. Informed strategies—such as comparing prices across platforms, checking historical rates, and evaluating product necessity—help consumers distinguish between genuine offers and marketing hype.
Discussion
While competition can drive better prices and innovation, it also incentivizes deceptive advertising during peak festive seasons. Regulatory guidelines, such as those from the Advertising Standards Council of India (ASCI, 2023), support ethical marketing, but consumer awareness remains crucial. Transparent advertising builds trust, whereas misleading promotions risk long-term damage to both consumers and brands.
Conclusion
Diwali advertising illustrates the delicate balance between marketing, competition, and consumer protection. Shoppers who critically assess festive offers can enjoy real savings, while brands that prioritize transparency can foster credibility and loyalty. Understanding the interplay of advertising tactics and competitive strategies is essential for a safe and informed festive shopping experience.
References
- Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263–291.
- Kotler, P., & Keller, K. L. (2022). Marketing Management (16th ed.). Pearson.
- Nirmala, S., & Singh, R. (2018). Consumer Perception and Seasonal Discounting in Indian Retail. Journal of Retail Studies, 12(3), 45–59.
- Advertising Standards Council of India. (2023). ASCI Code of Conduct for Advertisements. Retrieved from https://www.asci.in
PHOTO: Aryan Singh. Unsplash
