You are here: Home - Household Bills - News -

Online shoppers face 500% price hike at checkout

0
Written by:
04/09/2018
Online retailers are using teaser rates to entice customers then bumping up advertised prices at the check out by as much as 500%, according to new research.

Consumers pay up to five times as much as the advertised price for train tickets, flights, hotels, car hire and personal loans because of the popular online marketing technique of adding fees and charges to the final price, research from Shawbrook Bank found.

A mystery shopping exercise found consumers could pay up to 428% more than the advertised price for train tickets, 527% more for flights and 183% more for personal loans.

Eight in ten people surveyed said they felt cheated by brands that use teaser rates and three-quarters said the tactic left them frustrated.

A psychologist has dubbed this “FrOMO” or the Frustration of Missing Out on advertised prices.

More than half of the 2,000 people polled said they wouldn’t recommend a company that used this technique.

Honey Langcaster-James, a psychologist who has appeared on Big Brother and Love Island, said: “In life we tend to feel let down by anyone who over-promises and under-delivers. If this happens on a repeated basis then we start to become angry and frustrated and in worst case scenarios this experience can sever a relationship. Essentially, this is what is happening when brands constantly tease prices before increasing them when we decide we want to make a purchase.”

Paul Went, product and markets director at Shawbrook Bank, said: “FrOMO clearly has a major impact on how we shop and what we think about the brands who subject us to it. It has made the process of shopping for holidays, flights, hotels, train tickets, car hire, tickets to gigs or sporting events and personal loans difficult and complicated. All too often getting the product or service you want can feel like a battle and that isn’t the right kind of relationship we want to foster with customers.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
TSB boss steps down as IT issues continue

TSB chief executive Paul Pester is to step down amid the bank’s continuing IT failures.

Close