How Viagogo Marketing Misled the Event Ticket-Buying Public

Viagogo has misled the entertainment, music and sports event ticket-buying public with misleading internet marketing and hidden price extras for the tickets it sold, according to the Federal Court of Australia.

The decision is Australian Competition and Consumer Commission v viagogo AG [2019] FCA 544 (Burley J) (18 April 2019).

Viagogo’s marketing activity appears to be a text book consumer marketing strategy designed to exploit the psychological flaws displayed by consumers when making purchasing decisions.

Consumer buying behaviour is driven by powerful emotions such as pride and prestige, status, exclusivity, trust and belonging. These emotions are heightened when purchasing luxury goods either as a personal indulgence, or as a gift for a friend, family or loved one.

In its website marketing, viagogo exploited these consumer buying motivations and decision-making triggers:

• Fear and scarcity – In this case, Viagogo activated the ‘Fear Of Missing Out’ (FOMO) by advertising the artificially limited ticket numbers, compounded by the pulsing clock and deadline creating a false sense of urgency and scarcity
• Trust / Authority – Viagigo’s claim of being an ‘official’ site catered to consumers need to purchase from a trusted and reliable source
• Belonging - A common driver for purchasing tickets to live shows and sporting events is the human need for belonging. This can mean wearing the team colours, chanting the club song or sharing stories with your friends from the mosh pit. The fear of missing out on this almost tribal bonding between peers means that logic goes out the window and people are prepared to pay exorbitant premiums in order to belong
• Sunk cost fallacy - The five stages of the buying cycle on the website are considered as an ‘investment in the purchase process’ or ‘buy-in’. Once the price is revealed, even though it may be greater than expected, the consumer is likely to think ‘Oh well I have come this far!’
• Ego - Once the sunk cost fallacy has taken hold, and the hefty booking fee has been revealed, the ego kicks in as the purchaser does not want to be perceived as being stingy
• Guilt - Gift purchases, especially live shows such as the theatre or concerts are often driven by guilt arising by not spending enough time with partners, family and loved ones. A ticket to a live show fulfils the desire to create special and memorable events for the future

Viagogo and their marketing team would almost certainly have been aware of these consumer buying triggers, and the impact of their marketing activity on the consumer buying and decision-making process

Read the full article by Tony (Anthony) Cordato from Cordato Partners, Business Property & Tourism Lawyers full article here: https://lnkd.in/f83N5sV

Marketing commentary by EvettField Partners Pty Ltd

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