Last year, Fiona 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." Fiona 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

Fiona's strategy of initially marking prices high and then offering significant discounts likely influenced buyers' perceptions through contrast effects. Buyers perceived the discounted prices as better deals compared to the initial high prices, making them more inclined to purchase.

Last Year, Fiona Had a Yard Sale