What are the psychological effects of discounts in marketing?

What are the psychological effects of discounts in marketing?

Discounts can create a sense of urgency and increase perceived value, making customers more likely to purchase.

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

People often associate discounts with savings and a good deal, triggering a fear of missing out (FOMO).

How do discounts influence consumer behavior?

Discounts can lead to impulse buying, as they lower the perceived risk of a purchase and enhance satisfaction.

Are there specific types of discounts that work better?

Yes, limited-time offers and percentage discounts tend to be more effective in driving sales.

Can discounts harm a brand's image?

Yes, excessive discounting can devalue a brand and lead customers to perceive it as lower quality.