Buy One Get One Half Off: Is It Worth It?

607 Words2 Pages

Consumers respond to the "Buy One Get One Half Off" (or BOGO 1.5) sales promotion because it gives an impression of savings and serves as an incentive for the consumer to get two items for one and a half price. Perhaps, rational consumers evaluate their choices and act systematically to achieve their objectives. Marginal changes are incremental changes to the existing plan of action. The rational consumer can precede a better decision when thinking of the margin. They only act if marginal benefit exceeds the marginal cost. If acting on the promotions, the consumers will receive a better value by purchasing the products. On the other hand, if the consumers choose to forego the deals then the promotion does not support consumers' objectives. By accepting the promotion, she can achieve a consumer surplus/ net savings of 50 percent of one shampoo. Perhaps, her marginal benefit outweighed the marginal cost so it alters her consuming plan to suit her objectives.
Secondly,
The upcoming example can illustrate this behavior. For instance, one consumer notices the local market is offering a B...

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