A simple way to figure out which discount frame seems larger is by using something called the Rule of 100. If the product’s price is less than $100, the Rule of 100 says that the percentage discount will seem larger. For a $30 T-shirt or a $15 entrée, even a $3 discount is still a relatively small number. But percentagewise (10 percent or 20 percent), that same discount looks much bigger. If the product’s price is more than $100, the opposite is true. Numerical discount will seem larger. Take a $750 vacation package or the $2,000 laptop. While a 10 … Continue reading How to frame a deal with The Rule of 100

This can be because the actual deal itself exceeds expectations (for example, the percentage off is so unbelievable) or because the way the deal is framed makes it seem that way. Quantity limits work the same way. Retailers sometimes create limits around the number of a given discounted item a given customer can buy. “One per household” or “Limit three per customers.” You might think that by making it harder for people to get as many as they want these restrictions would hurt demand. But they actually have the opposite effect by making the promotion seem like an even better … Continue reading Promotional offers that seem surprising or surpass expectations are more likely to be shared