The thrill of the deal
Consumers say they want low prices.
It’s become a hotly debated point that no one can agree on: Do customers prefer everyday low prices? Or are they drawn to shop more when products are on sale?
Certain retailers, such as Walmart, thrive in an everyday low-price environment. But an article in the New York Times suggests that generally speaking shoppers get a charge from finding items on sale and that's why price promotions are so effective.
Another reason promotions work: shoppers don’t always know the prices of everything. Sale signs, therefore, act as cues that the price is indeed right.