The Psychology of Discounts and Deals (Motiongraphic)
Everybody loves a bargain -- it’s business, but it’s also psychological.
The human ability to count is hardwired into several parts of our brains, according to this motiongraphic from eBay Deals. Even before we are able to count, infants develop expectations for what should be the result of an addition or subtraction equation. When the brain perceives larger quantities, then the specific numbers fade away and infants only understand the proportion between two numbers.
And so it is with customers and their knee jerk reaction to getting a deal. Customers will be further incentivized by larger-percentage discounts.
Learn more about the psychology of discounts in the motiongraphic below.
Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.