How businesses trick you with DISCOUNTS (psychology) 🤑 #shorts

Psychological Tricks in Marketing

The Concept of Denominator Neglect

• A psychological experiment involving Skittles illustrates the concept of denominator neglect, where participants are asked to choose between two bowls with different quantities of Skittles.

• In a study from the University of Massachusetts, 82% of people chose the larger bowl, believing it offered a better chance to pick a red Skittle due to its higher quantity.

• This phenomenon shows that consumers often focus on the numerator (the number of favorable outcomes) rather than considering the denominator (the total number), leading to skewed perceptions.

Pricing Strategies and Consumer Perception

• An example from a Swedish grocery store highlights how different discount presentations can affect consumer choices; one price reduction was framed as "31 lower," while another was presented as "44 higher."

• The effectiveness of these discounts demonstrates how framing can influence buying decisions, with consumers more likely to respond positively to certain numerical representations.