What is the real cost of discounting retail items?

 In Australia, NewZealand
Discounting retail items reduces the tendency to shop around, which leads to less competitive outcomes and potentially higher prices, according to University of Adelaide School of Economics’ Associate Professor Ralph Bayer.
In new research published in the Journal of Economic Psychology, Associate Professor Bayer studied how price framing (the way in which a price is presented) influences consumer shopping behaviour.
In a two-shop consumer search experiment conducted in a computer laboratory, participants were exposed to both net prices and gross prices with a discount.  NewsMaker – Read more…

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