Augment Discount Appeal with Requests

When you tell a customer they’re receiving a price discount, they’ll build good will toward your store. If you add that the discount isn’t available to every other customer, the good will might be even greater. But do be aware that your announcement could make the customer uncomfortable. Be consistent and be ready to explain the reason for the discount. Otherwise, the customer can get angry, thinking that your store pricing is highly arbitrary or even discriminatory. Consumer behavior research studies suggest that for North American consumers, you make the reason either demographic (“A 10% discount to senior citizens”) or marketing-determined (“A 10% discount to first-time purchasers”).
     For Asian consumers and those identifying with an Asian culture, attributing the discount to good luck can be useful as long as you explain that the luck was earned by some action the shopper took. Researchers from Baruch College, University of California-Berkeley, and San Francisco State University surprised people with promotional gifts. Those from the United States enjoyed their surprise gifts more than did those from Hong Kong, Singapore, Taiwan, or Vietnam. Because the reward appeared to be unearned, the East Asian recipients seemed to feel it produced a menacing imbalance.
     An earning action could be doing a favor for the retailer. In a set of studies at Georgetown University and Pennsylvania State University across a range of shopping situations, consumers were offered discounts on a purchase. In some cases, the offer was accompanied by a request for a favor to be done by the shopper. Those consumers asked to do the favor were more likely to accept the discounted offer than were those not presented the request.
     But participants in these studies were not just people identifying with Asian cultures. What’s the explanation of this “favor request effect” for the others? The researchers say it’s a feeling of reciprocity. Doing the favor provides a perception that the shopper is getting the best deal possible.
     In a Santa Clara University study, psychology students topped a table with Rice Krispy Treats. When a shopper coming by asked the price, the salesperson would go get a fresh treat, in some cases knocking over a cup of pens, making it look like an accident. Among the consumers who were asked the favor of picking up the pens, about 70% purchased the treat. This contrasts with a 36% rate when no favors were done or requested.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more: 
Mug for Shoppers Who Buy Distinction
Give the Gift of Uncertainty, Love
Request Reciprocity
Favor Reciprocity with a Ben Franklin Effect