<p>And any sensible retailer will recognize not only that offering a higher discount will appeal to more shoppers but also that listing a more precise discount with a decimal place makes for a less attractive sign than a nice, round number does. But are things ever that simple? A paper published in the Journal of Consumer Psychology describes a series of experiments in which the authors studied how consumers perceive discounts and why. Their counterintuitive finding is that customers perceive more precise discount figures as being fleeting offers, which gives them a sense of urgency about making a purchase decision and significantly increases their intention to purchase compared with discount figures that have been rounded up. What's more, the authors found that the sense of urgency consumers feel when looking at precise discount figures is more pronounced than when they're faced with signs indicating that a round-number discount is available "today only." Regular shoppers are probably wise to retailers' tendency to advertise limited-period discounts, only for those discounts to return soon after. If retailers pick up on this study, expect to see more "23.3% off" signs in stores near you.</p>

Don't Round the Discount!

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