"Shoppers, they found, much prefer getting something extra free to getting something cheaper. The main reason is that most people are useless at fractions…Studies have shown other ways in which retailers can exploit consumers’ innumeracy. One is to befuddle them with double discounting. People are more likely to see a bargain in a product that has been reduced by 20%, and then by an additional 25%, than one which has been subject to an equivalent, one-off, 40% reduction."
#economics
#shopping
#commerce
#retail
#Psychology
#The Economist
#behavioural economics
#behavioral economics
#consumption
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