Wednesday, July 19, 2017

marketing - Do people respond more to $ off promos or % off promos?


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.


No comments:

Post a Comment

technique - How credible is wikipedia?

I understand that this question relates more to wikipedia than it does writing but... If I was going to use wikipedia for a source for a res...