In the past we've typically used promotional codes on our site in either banners or other advertisement placed images. And I was wondering if anyone has any information on performance of banners with using Dollar amounts off or Percentage amounts.
For example...
Save $10 off orders of $100 or more
As opposed to
Save 10% off your next order*
A disclaimer at the bottom of the page would then state: *10% discount applies to first $100 in your order
I see a few companies in our competition using the 10% with a disclaimer at the bottom and my personal feeling is that it's misleading, but I do believe that with the use of 10% more people are going to click on it and order.
Answer
Behavioral economics looks at this type of question, and would be a good area for you to investigate. http://en.wikipedia.org/wiki/Hyperbolic_discounting talks about how people perceive discounts. My immediate thought for your specific issue is that people will minimise cognitive load - a % discount requires them to think a bit more than a $ discount, so the greater response is likely to be from a $ discount.
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