Shopping Psychology: Do You Prefer Sales Or Every Day Low Prices?

Marketing is something of a game; retailers want you to spend the most money, but not none at all, and cash flow is important, so sometimes they have sales, even at a loss to get you in the door in the belief that you will spend more money. But is that the optimal strategy for a retailer?A new paper in the Journal of Consumer Research says consumers instead choose retailers they believe offer the lowest prices the majority of the time.  To simulate 100 weekly purchases from a retail store, participants were asked to purchase products from one of two competing retailers 100 different times. Participants were given a monetary incentive to minimize their total spending and were instructed to base their selections strictly on price. read more

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