Marketing Head-Fake: Why The Same Price Discount Sometimes Looks Better
Quick: You’re walking by a store window and you see a sign that says, “20% off the original price plus an additional 25% off the already reduced sale price.” So, how much is the discount" Consumers often mistakenly think the total discount is 45% off the original price when, in fact, the true discount is 40%. A thought-provoking new study from the October issue of the Journal of Consumer Research explores why consumers frequently think a double discount is a better deal than a single discount of the same total magnitude.
“Retailers frequently use the strategy of double discounts for their…