The Effectiveness of Discounts and Promotions in Attracting Customers

Just like how an eagle's eye notice its prey from a far, discounts hold the same value for any business as they can grab peoples’ attention like nothing else. In short, everyone likes deals! The other side of the coin though is ‘if use too frequently, discounts can lead to detrimental consequences.’ Imagine how people start perceiving goods with overly discounted priced tags- most of us assume such goods are not worth the money we’re led to believe they're valued at. This in turn negatively affects the brand's perception along with its profits. This piece of research attempts to understand the inner workings of discounts and their alluring appeal, along with the consequences of using them too carelessly. It is also concerned with more responsible application of discounting such as setting brand reputation targets, identifying the right customers, and ensuring profits. Specialists and practitioners articulate the need for balancing the amount of discounting done with their overriding business objectives through using the data gathered in the form of case studies.