33 Percent More Quantity Or 33 Percent Discount?July 7, 2012 1:51 pm
We spotted this rather interesting stat today:
“When offered the possibility of 33% off a product or the same product with 33% more quantity, which would you choose?
The Economist sums up the results of a new study published in the Journal of Marketing, which reveals that most consumers view these options as essentially the same proposition. But they’re not. The discount is by far the better deal. As the Economist puts it, because most shoppers are “useless at fractions,” they don’t realize that, for instance, a “50% increase in quantity is the same as a 33% discount in price.”
Read more: http://moneyland.time.com/2012/07/03/consumers-prefer-to-get-more-rather-than-pay-less-because-theyre-bad-at-math/#ixzz1zwctGKnC”