Last year Darshini had a yard sale. She marked the prices of items very reasonably, and she refused to reduce them when people tried to "deal". This year she had another yard sale, but this time she marked the prices of items quite high, and then reduced them by 50% or more when people asked to "deal". Darshini was surprised to find that she made much more money this year. When she asks you why this might have happened, you explain how judgments can be affected by

Question

Quizplus · Accepted Answer

Darshini's sales strategy was affected by contrast effects. By marking the prices high initially and then reducing them, the items appeared to be a good deal to the customers, leading them to make more purchases. The contrast between the high original price and the lower sale price influenced their judgment and increased their willingness to buy.

Last Year Darshini Had a Yard Sale