Thursday, September 20, 2007

Shopper Calculations Often Wrong

According to The New York Times article by Alex Mindlin, “A Math Test for Bargain Hunters”, 59% of bargain hunters incorrectly compute sales percentages.

In a study by Florida researchers, shoppers were more likely to buy an item on sale for the second time, than the same item on sale for a higher, but equivalent amount.

A product on sale for 33% of a 25% discount would attract more shoppers than a product with a 50% discount. Although they are both offer half off, shoppers incorrectly added the first sale to be a 58% discount!

Taking advantage of customer perceptions help you build a stronger business.

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