SAVING
A COUPLE OF BUCKS
When most people think about practical value, saving money is one of the
first things that comes to mind—getting something for less than its original
price or getting more of something than you usually would for the same
price.
Websites like Groupon and LivingSocial have built business models
around offering consumers discounts on everything from pedicures to pilot
lessons.
One of the biggest drivers of whether people share promotional offers is
whether the offer seems like a good deal. If we see an amazing deal we
can’t help but talk about it or pass it on to someone we think would find it
useful.
If the offer is just okay, though, we keep it to ourselves.
So what determines whether or not a promotional offer seems like a good
deal?
Not surprisingly, the size of the discount influences how good a deal
seems. Saving a hundred dollars, for example, tends to be more exciting
than saving one dollar. Saving 50 percent is more exciting than saving 10
percent. You don’t have to be a brain surgeon to realize that people like
(and share) bigger discounts more than smaller ones.
But it’s actually more complicated than that. Consider what you would
do in the following example:
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