What is the psychology behind discounts and sales?

What is the psychology behind discounts and sales?

Discounts trigger a sense of urgency and perceived value, making customers feel they are getting a better deal.

Why do people feel compelled to buy when they see a discount?

People often associate discounts with savings, which can create a fear of missing out (FOMO) and prompt immediate purchases.

Are there specific types of discounts that work better?

Yes, limited-time offers and percentage discounts tend to be more effective as they create urgency and excitement.

How do retailers use discounts to influence consumer behavior?

Retailers use discounts strategically to attract customers, increase sales volume, and clear out inventory.

Can discounts affect brand perception?

Absolutely! Frequent discounts can lower perceived brand value, while occasional sales can enhance brand desirability.