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I recently went to a department store called Kohl's for the first time with my wife, who'd been shopping there for years. For those unfamiliar with this store,
by richpimp 8y ago
I recently went to a department store called Kohl's for the first time with my wife, who'd been shopping there for years. For those unfamiliar with this store, think something similar to a JC Penney's. What struck me was that above every item was some digital signage showing a discounted price or promotion (B1G1 Free, 25% off, etc.), along with the MSRP price. So basically, anything I looked at seemed like a great deal. They also have a rewards program whereby you get "Kohl's cash" whenever you reach some threshold for purchases (something like $5.00 Kohl's cash for every $100 spent), which effectively gives you a discount.
Of course, I soon realized that this was all simply a tactic to encourage people to continue to spend their money in the store, an effective one at that. The "sale" price was really no different than the standard price at any other retail store. It was just the perception of getting a good deal and triggering the dopamine receptors in the brain. I told my wife this, but her reaction was one of incredulity. Her thinking was she was saving money by shopping there. It's such a simple, yet brilliant tactic. Make people feel like they're getting a good deal, and they'll spend more money than they otherwise would.