A new report reveals the extent to which Londoners are fooled by false economies. Three-quarters (76 per cent) of consumers in London experience false economies with nearly a third (31 per cent) falling victim at least once a month.
With false economies being so prevalent in the British consumer experience, it’s no surprise the risk of being caught out adds up to a huge £596 million, with a single false economy costing each consumer an average £114.90.
The research from TopCashback.co.uk, the UK’s most generous cashback shopping site, reveals nearly half (49 per cent) of consumers in London are most likely to experience false economies in larger chain shops.
It’s no surprise then, food products and groceries are the false economies consumers succumb to the most often (35 per cent).
However, it’s the big-ticket items including cars and holidays that leave Londoners with the biggest holes in their pockets. Seven per cent have since realised they have been duped when buying a car, costing them on average, £600.30, and 14 per cent have paid out £379.70 on a financial product that turned out to be a false economy.
The predominant reason for buying into a false economy is a lack of time (29 per cent). A fear of missing out on a good deal (26 per cent) and convenience (26 per cent) are also among the most common reasons leading to consumers in London buying into false economies.
Yet the research also reveals there is a numeracy skills gap with 17 per cent of consumers being duped by false economies because they find it too difficult to work out the maths of the deal. Nearly a quarter (24 per cent) of consumers also feel deliberately tricked by retailers and providers.