How do stores price our minds?

By highlighting the discount percentage, stores distract the customer from the final price.

When the price of a product is reduced from five million tomans to three million tomans, the first reaction of consumers is the feeling of achieving an economic opportunity.

According to ambassador Arjan; The label "40% off" draws attention to the amount of the price reduction and creates the impression that buying the product is a profitable decision, even if it is not necessary in the first place. In this situation, instead of evaluating the real value of the product and the need to buy it, the consumer bases his decision on the difference between the initial price and the new price. This is the point where behavioral economics reveals the hidden mechanisms of market decision-making.

In the conventional economy, the consumer is assumed to be a person who makes the best choice within his budget by comparing prices and measuring the desirability of goods.

Behavioral economics, however, shows that the economic decisions of humans are not always the result of accurate calculation. Price perception, information presentation, expectations and psychological reactions can change people's choice. From this point of view, the discount is not just a tool to reduce the price; It is a method to change the framework in which the consumer evaluates the price and value of goods. In this situation, the decision criterion of "How much is the value of the goods?" to "How much has it dropped from the original price?" it changes

The difference between these two questions is fundamental from an economic point of view. The initial price may be determined under the influence of the seller's pricing policy and does not necessarily reflect the actual value of the goods or the conventional market price; Therefore, the large discount percentage alone does not show that the consumer has made a good deal. What is important is comparing the final price with the price of similar goods and measuring the quality and necessity of the purchase.

Another mechanism that plays a role in discount marketing is the "framing effect". The way an offer is worded can change consumer perception, even if the economic information remains the same. Announcing a 30% discount may be more attractive than stating the final price of the product; Because it directs the customer's attention to the benefit he apparently gets. In such a situation, the number corresponding to the discount is highlighted, and the fee that must actually be paid is placed in the margin. This difference in the way information is presented can affect people's evaluation of the same offer.

Tools to influence the purchase decision

Time is also one of the tools to influence the purchase decision. Phrases like "only until the end of today," "last chance," and "limited stock" can create a sense of urgency and reduce the opportunity to consider alternatives. This situation can be explained by the concept of "loss aversion". A tendency according to which people are usually more sensitive to a potential loss than to an equal gain. In a sales environment, the possibility of missing out on a discount may become a deciding factor, driving the consumer to make a decision faster than he or she would normally make. Of course, a time limit is not always a sign of fraud, and real discounts can also have a specific period.

The issue becomes important when creating urgency replaces the provision of clear information or prevents the customer from comparing prices and evaluating their needs. In this situation, the timing of the sales offer becomes a tool to guide behavior; A tool that may increase the distance between a considered decision and an emotional purchase. "Mental accounting" also explains why discounting sometimes leads to increased spending. Humans do not always manage money as a unified resource; They may keep separate mental accounts for income, savings, bonuses, and money they think they have saved. For example, a person who received a discount of 1 million tomans may consider this amount as freed money to buy another product. As a result, the benefit gained from the price reduction becomes a mental license to increase consumption.

From a household budget perspective, saving is not the same as feeling frugal. If a consumer buys an unnecessary item, even at a significant discount, his total spending may increase. On the other hand, buying an essential product at a price lower than the normal market price can be a completely rational decision.

Therefore, the economic evaluation of the discount should be done according to the real need, the final price, the quality of the product and the opportunity cost of the purchase; No, it is only based on the declared percentage. This is even more important in economies where households face budget constraints and uncertainty about future purchasing power. Discounting can be a way to manage necessary expenses, but economic pressure may also increase people's sensitivity to seemingly exceptional offers. As a result, price transparency policies and dealing with misleading discounts, along with promoting financial literacy, can help improve the quality of consumer decisions. In this sense, financial literacy, in addition to income and cost management, requires knowing the factors that shape people's perception of price, value and necessity of purchase.