• Stacey Rudolph

How Discounts Affect Online Consumer Buying Behavior

As a marketer, it helps to ask yourself pertinent questions such as:what motivates your consumer buying decisions?Are consumers rational? It has often been said that consumers do not act purely on logical basis.

More often than not, the emotional part of their brains wins when it comes to making purchasing decisions. Therefore, there are several factors that affect online consumer buying behavior and one of them is product discount.

Price perception is everything. If the consumers think that they are getting a deal, then they will be more inclined to make a purchase. Who doesn’t love bargain products? According to Invespcro, discounts can have a huge, positive impact on your sales.

A customer will most likely resolve to buy a product if they see that the price tag has been discounted. Normally, the customer is not concerned whether the discounted price tag is actually less than the value of the product. The mere feeling that they are buying something at a bargain price is enough to persuade them to place an order. This is explains why an overwhelming majority of consumers pay attention to promotions, discounts and coupons.

As soon as there is price reduction, they will act. As a matter of fact, nearly 30% of consumers say a coupon is enough to close the deal. Moreover, 83% of consumers say they would mostly click an ad if it offers a promotion or discount. Several experiments have shown that thoughtful discounts work. So long as consumers believe they are getting the same quality and quantity at a lower price than the previous one or the competitor’s one, sales will increase.

In addition to improved sales and traffic, offering discounts come with other advantages. Giving your customers a great value for good quality services and goods can increase their loyalty to your brand. This is especially true for new customers. Once a customer has tried your product, they can easily become repeat customers. Also, offering discounts may help you to quickly dispose of old inventory or slow moving products and generate quick cash for other business operations. Sometimes selling a product at 80% off the normal price makes sense. For instance, in the airline industry, the seats that have not been booked have no value to the airline. So it is better to sell the remaining inventory at a discount than flying with an empty seat.


Having said that, there is a caveat to discounts. Discounts do not happen in a vacuum. There is always a context. While offering discounts increases sales, it reduces your overall profitability because of reduced profit margins. Before offering discount, one must ensure that the improved sales will compensate for the reduced margins. So unless you are sure to attract enough customers to offset losses due to reduced profit margins, offering discounts may not be a good idea. In that case, you should think of others ways of improving sales.

조회 1회