Supermarkets frequently deploy psychological tactics to encourage impulse buys, and price referencing stands out as a common strategy. Shoppers recently spotted this tactic on Jaffa Cakes shelves at a Co-op store in the UK.
One display featured a twin pack with 18 Jaffa Cakes priced at £1.85, reduced from £2.85. Nearby, a single pack containing 12 cakes sold for £2.25. Financial expert Martin Lewis highlighted the setup, stating: “£1.85 isn’t particularly cheap for 18 Jaffa cakes, yet by leaving the single pack there with 12 for £2.25 it provides a psychological reference which makes the discounted price feel cheaper.” He added: “Ps let alone the fact the twin pack doesn’t have double the single pack. It should be a one and a half pack.”
What Is Price Referencing?
This marketing approach displays a current low price alongside a higher reference price to create the illusion of a superior deal. The Advertising Standards Authority explains that reference prices may reflect previous selling prices, manufacturer recommendations, or competitor rates. While the twin pack proves cheaper per cake—about 10p each versus 18p for the single—it may not deliver the exceptional value shoppers perceive.
Shoppers Advise Checking Unit Prices
To counter such tactics, many recommend examining unit prices, which show cost per kilogram, liter, pound, or item for accurate comparisons across pack sizes.
One shopper noted: “I try to always check the cost per unit. Sometimes I have to stand for ages, as it’s not always easy to compare a twin pack because the single pack and the twin pack are made up of different volumes. And sometimes I just give in and make a guess.”
Another shared: “This is when my maths GCSE comes in. I would be straight on the calculator and working out how much each individual Jaffa cake was.”
A third expressed irritation: “I am fed up with all supermarkets doing this. Takes so long checking out what size pack works out cheaper (and it’s not always the bigger pack), and even more annoying is when some get broken down per 100g and other per kilo.”
Always verify unit prices to ensure genuine savings on everyday purchases.
