In this tough economy, chances are you're not looking to buy a new car or take a luxurious vacation. But a new trend might have you thinking otherwise.
It’s called pink slip marketing and it's aimed at getting consumers to spend big in tight times. Under the trend, some businesses now offer money back guarantees for people who spend big and then lose their jobs.
"From the consumer's perspective, some kind of guarantee that if they lose their job they won't have to pay the bill is a real incentive because it reduces the perceived risk in making the purchase," Margery Steinberg, a marketing professor at the University of Hartford, said.
Under the Hyundai Assurance Plan, the company will make your monthly payments for three months after getting the can. After that, if you're still unable to afford the car, they'll take your car back at market value and pay off your remaining loan up to $7,500.
"At times like this, what people are looking for is affordability, and a product like Hyundai is affordable," Gonzalez said. "It has a very good warranty and now being backed up fully with the assurance makes it that much more solid."
High-end clothier Jos. A. Bank is offering a risk-free suit deal for customers who purchased suits during its recent sale. Under the deal, the company will refund $199 to customers who purchased a suit but now find themselves out of work. The customers can also keep the suit.
If the economy is leaving you reluctant to travel, try shopping around for trip insurance. Some companies like Travel Guard, Apple Vacations and the Norwegian Cruise Line will now refund your money if you purchase insurance and then cancel after losing your job.
"It's just a good thing for people and a smart move for the economy," said Graham Hird, the owner of Copper Travels in Enfield.
According to Steinberg, such marketing trends are helping companies break even or turn a profit in this slow economy.
"The business that they're driving by reducing the perceived risk overcomes some of the money that they're going to have to pay out," she said.