Psychologically, we all love discounts—poor and wealthy alike. We like to think we’re getting a deal. That we’re lucky. Or that we’re a smart shopper.
Discounts almost always increase unit sales. The “almost” reflects big questions about when you have a premium-quality product or when consumers have little method other than price by which to judge your quality—and quality is extremely important to them.
So should you offer them? It depends. Remember when I said what people hate about marketers is our answer to everything is to test it? Well, that’s the correct answer here.
If you don’t test the effect of discounts, you may be throwing away a lot of money. You’ll see in some of the research that follows that: