Friday, 18 July 2014

The Secret Psychology Behind The Success of Online Discounts


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The secret to the success of online rebates is locked inside the human mind. It is a simple matter of understanding human psychology. If you think about it according to the economic system we behave as consumers that demand and sellers supply. All this is based on the human nature.

First thing we all must realize is that the idea of a deal simply appeals to us. Economics is based on the idea that humans will always want more for less. The fact that we always want more than what we already have is among our major motivations for success and can also be a cause for our greed. However the point is that when we hear of an item sold at a mark down, we naturally want to know about the concession. We are interested in the particular good or service, we want to know what it is, as well as how much it costs before and after the rebate. Basically, as a consumer we are bound to behave in the most self benefiting manner.  

Trust

When we think of concessional offers for certain percentages off we naturally trust the provider of the markdown that they are being ethical in offering the given rebate. When we are offered a 30% discount coupon code for a particular good we naturally assume that the provider is being honest. There is a less likely chance that most of us will suspect that the price has been marked up by 40% and then discounted by 30%. This is not to say that discount providers do this, but we should all survey of as many online vendors offering the given rebate and decide whether the offer is worthy of our resources.

Deterrence

Now searching for specific product or good online can be very difficult with the amount of information on the World Wide Web. We can get fed up of searching for all the discount promo code offers for the good we are looking for. This is the reason why once we as online shoppers find a good on discount we want to buy and find the discounted price affordable, we will be deterred from searching for other offers for the same good.

Urgency

Now when we see a rebate offer or a bargain deal offering us a lesser price than we expect to pay, we automatically hurry to make the buy. This sense of urgency is created by the discount offered. We will get a feeling that we might miss out on the opportunity to save if we do not take advantage immediately. That is why coupon codes have an expiry date. It is an attempt to call us into action which is why we hurry when given the opportunity to buy.

The human psychology and our resulting behavior cannot be explained in its entirety. However, we can understand our impulses, drive and response to certain stimuli. Our culture, tradition, school of thought and belief system all impact our decisions.

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