What is the psychology behind handing out discounts


Plusvouchercode.co.ukand sites like it are dedicated to offering various kinds of promotion codes, discounts and vouchers. The reason for the existence of www.plusvouchercode.co.ukand other such sites is that discounts and promotions are not only used by everybody but they are loved by people regardless of the gender, economic strata or age group.

 

Discounts are everywhere and offered on a wide variety of products as can be seen on plusvouchercode.co.ukand other such sites. The discounts usually work on the principle of urgency. These usually are available for a limited time period and if the person does not use the code in the time period, the discount code usually expires.

 

The reason why people prefer these discounts are due to the pleasure principle involved. A person seeks pleasure and avoids pain. That is why people want to avoid the pain of missing out on discounts and saving money and therefore they use these coupons.

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There are different ways of giving discounts. The discounts could be in terms of offering a free product or service when they buy a certain amount or kind of items. It could be offered in terms of free shipping  or a certain price shaved off from the marked price or it could be a percentage off. There are also discounts offered on discounts and thereby a double saving.

 

People usually prefer 50% more of the product rather than saving 33% on the price of the product. Even though, it works out to the same thing. The same logic works when people are offered 25% discount over and above a 20% discount rather than giving them a discount of 40%.

 

Discounts need to be worded well for it to have the effect on the consumers.

 

The duration of the discount too has a major impact on how it is perceived.