Published: Nov. 16, 2003

The holidays are right around the corner, and for many people that means heading to the mall in search of the perfect gift.

But University of Colorado at Boulder Leeds School of Business Professor Donald Lichtenstein says don't let the Christmas rush get in the way of smart shopping.

For many, the bombardment of gift ideas and promotions has already begun in the form of store catalogs, television and newspaper advertisements announcing sales, coupons promising savings and "wish lists" from loved ones.

"I like to tell people not to take any of this at face value," said Lichtenstein, who has studied consumer behavior and the marketing techniques of stores for more than 15 years.

While there are plenty of good deals to be had during the holiday shopping season when retailers are competing for every dollar, finding the real values takes some work, according to Lichtenstein.

For example, when stores advertise items on sale, consumers often believe they have a good price in hand, so they don't need to shop around, he said. And on top of that, they often feel pressure to buy right away because the item is only on sale for a short period of time. He warns shoppers to be leery of what he calls "reference ads."

"When something is advertised as 'was $199.95, now $99.95,' the perception is that this is a good price," Lichtenstein said. "It may turn out to be a good price, but without a comparison you really don't know. Consumers would be well served by checking what other merchants are charging for the item."

To find out, Lichtenstein recommends searching the Internet to see what's out there, checking the competition's price and also tapping into friends' expertise.

However, relying on salespeople is not always a good option, he said, because they often are given incentives to sell certain products over others.

Shoppers also should be aware of what's known as "brand variants," where retailers work with manufacturers to get a version of a common product that is unique to their store. So when people try to comparison shop, they can't compare the product to anything else, because it is "unique."

"It's not costless to do these searches, but if you want to get the best price, you've got to put some time into it," he said.

Shoppers also fall victim to the euphoria of the holiday season and spend more freely than they typically do. Lichtenstein said people should make a conscious effort to shop smart.

"Impulse buying is also a trap consumers fall into during the holiday shopping season," he said. "To get the most for your money let the market system work for you by shopping for the best-priced item.

"There's just no substitute for consumers doing their homework," Lichtenstein said.