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Many discounts are designed to give consumers the perception of saving money when buying products, but not all discounted prices are viewed as favorable to buyers. Therefore, before making a purchase, consumers may weigh their options as either a gain or a loss to avoid the risk of losing money on a purchase. Product manufactures want to promote and encourage this instant purchase impulse in consumers.
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Buyers can be very quick to make purchases without thinking about the consequences when a product is perceived to be a good deal. Many consumers read left-to-right, and therefore, compare prices in the same manner.
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The right digit effect focuses on the right digits of prices when the left digits are the same. As a result, companies may use discounts with smaller right digits to mislead consumers into thinking they are receiving a better deal and increasing profit. However, consumers also are deceived by the infamous 9-ending prices. Sales companies most commonly use this approach because the misinterpretation of consumers usually results in an increase of sales and profit. This theory consists of three subcategories: risky choice framing, attribute framing and goal framing.
Attribute framing deals with one key phrase or feature of a price discount that is emphasized to inspire consumer shopping. Goal framing places pressure on buyers to act hastily or face the consequences of missing out on a definite price reduction. For example, even though a product's price is discounted, the quality of that product may dissuade the consumer from buying the item.
Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States.
For example, the United Kingdom formerly operated under a resale price maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in Most European countries also have controls on the scheduling and permissible types of sales promotions, as they are regarded in those countries as bordering upon unfair business practices. Germany is notorious for having the most strict regulations.
Famous examples include the car wash that was barred from giving free car washes to regular customers and a baker who could not give a free cloth bag to customers who bought more than 10 rolls. From Wikipedia, the free encyclopedia. Marketing Marketing Marketing management Key concepts. Promotional content. Promotional media. Behavioral targeting Brand ambassador Broadcasting Display advertising Drip marketing In-game advertising Mobile advertising Native advertising New media Online advertising Out-of-home advertising Point of sale Printing Product demonstration Promotional merchandise Publication Visual merchandising Web banner Word-of-mouth.
Sales promotion - Wikipedia
How to start and succeed in a business of your own. In: Sidin S. Journal of Consumer Research. European Journal of Marketing. The Economist. Media manipulation. Censorship Media regulation. Categories : Sales promotion.
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