Store Techniques to Promote Certain Prices to Buyers

Stores have studied the different ways customers react on what they normally do with the displayed product. Promotions like 20% off sitwewide can be seen. One common type is the “Goldilocks Promo”. In this method stores used to promote a price such that it will look better by displaying contrasts. Take for example 2 television sets placed side by side. Between the two, the cheapest price will likely sell first since many would opt for the lower price. But if there are 3 television sets placed side by side to each other. A customer looking at the display will likely choose the middle priced meaning instead of the cheapest. Why is this so? That is the human tendency three items. That is also the concept used even in gas stations; the mid-priced item will always gain more sales. But the most common is still the 20% off sitwewide.

In the case of a relative comparison as in the coupons; this is the normal tendency. A $100 product if given a $10 discount and another product worth $50 is also given a $10 discount. Even though all the products have an absolute $10 discount regardless of the price; shoppers will buy more of the $50 item than the $100 one because they find more value for the $10 taken from the $50 item than in the $100. That is the relative consideration made by the shopper.

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