Investment Product – Part II

Please Read Part I before reading this.

Another similar experience I had in Big Bazar. It was Saturday, and there was a lot of crowd in Big Bazar. Suddenly, a salesman rings a bell, and announces,” For exactly 1 hour from now, the shirts in this segment will be offered with Buy 2 get 2 Free offer. The offer will end in just 1 hour”. Immediately, people jumped into the shirts section. They were trying to locate the 4 shirts that they can buy – with a tension that they have only 1 hour to select and may be that the best shirts will not be available for long. All that happened was people ended up buying shirts that they didn’t really need, that too 4 of them. The price may have been discounted, but the sale of 4 shirts ensured that big bazaar managed to sell its products. Nothing but IMPULSE MARKETING.

The same goes on for selling insurance products and investment policies. We tend to take decisions instantaneously. We never take time to analyze and IPO or a NFO – just that the IPO or NFO is opened for 3-4 days, we pour in our money. Same goes for insurance policies which are sold at the financial year end –with the tax-saving keyword doing the magic.

Sometimes, the agents are even willing to give cash from the portion of their commission. Most of the time, these cash offers are made for policies that require a long term commitment from the investors. All that is required by the insurance company and the agent is that the policy should be sold, the customers should commit for a long term – that is what makes LIC the biggest player in the Indian stock market.

Think and Analyze before making a financial commitment.

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2 thoughts on “Investment Product – Part II

  1. Bidhan says:

    I believe the difference lies in the perception –a buyer will have certain goals in his/her mind and based on that make a decision …at the same time seller also has a goal …to sell as aggressively as he/she can …taking your example of Big Bazaar 1 hour sale –it was quite tempting ..buyer may be thinking of gifting the shirts or hoping to get some good branded shirt dirt cheap and it would not matter if other 2 shirts are not as per his liking …but then both buyer and seller achieved what they wanted …so where do you get chance to think and analyze and wait for a offer like that to come again?

  2. Saravanan says:

    @Bidhan :

    We both have bought clothes in Mega Mart for such a deal bro. I remember very well. It made sense to us. But the point is, I had initially thought of shelling some 100 bucks due to the offer i bought unnecessarily and spent more than 100 bucks. Right?

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