Posted by & filed under Part 1 Business in a Global Environment, Part 4: Marketing Management.

Description:  A recent study in The Journal of Marketing shows that “buy one, get one free” promotions are more enticing to shoppers than, say, a 50-per-cent discount on a single item, even if that shopper doesn’t need two of what’s being promoted in the first place. In other words, bonuses are more attractive to shoppers than sales, even if they don’t equal a better deal.

Source: GlobeandMail.com

Date: July 17, 2012

Link: http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/it-doesnt-add-up-but-shoppers-are-suckers-for-bonuses/article4420287/

Questions for Discussions:

  • Why do you suppose consumers behave this way?
  • Do you think there are other illogical behaviors, with respect to price?

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