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The Value of Discounting

2014-12-11

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A recent study by The University of Minnesota took a look at how shoppers perceive discounts and value added items when shopping. The study found that shoppers prefer to get more for their money than to receive a flat discount. But when presented with both options they will often choose the discount. That sounds contradictory doesn’t’ it? The reason the choose the flat discount is simple, they don’t want to do the math. When presented with multiple discounts and offers, shoppers will take the easiest option, even if they aren’t saving as much. When only presented with the Value added option, the study shows that retailers sales were 73% higher over a flat discount. So how can hoteliers apply this to their revenue strategies?

 

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