Tag Archives: Pricing psychology

When Discounts Lose Their Psychological Impact

diminishing returns of repeated discount exposure

Have you ever noticed how your advertising results change as you spend more? On platforms like Meta and Google Ads, there’s a clear pattern. As your budget increases, your efficiency often decreases. This means higher customer acquisition costs and lower ROI. Promotions are vital for retailers. Research from Boston Consulting Group shows they account for …

How Fake Discounts Are Created and Why They Work

fake discounts explained

American shoppers face constant bombardment with seemingly incredible deals. Store displays scream “SALE! 60% OFF!” and “Black Friday Specials” that promise massive savings. Many of these offers aren’t genuine markdowns at all. Research from Consumers’ Checkbook reveals a troubling pattern. Their six-month study tracked 25 major retailers across the United States. The findings show most …