Consumers tend to perceive stores that offer a small discount on a large number of items as having lower prices overall than competing stores that offer larger discounts on a smaller number of products.

Question

Quizplus · Accepted Answer

This phenomenon is known as the "decoy effect" and has been demonstrated in various studies. Consumers are more likely to perceive a store as having lower prices overall if they see a large number of items with small discounts, even if the actual prices of those items are not lower than those at competing stores offering larger discounts on fewer items.

Consumers Tend to Perceive Stores That Offer a Small Discount