Discount Psychology: Why Your Brain Loves Coupons More Than Price Tags


Prof. Yunhui HUANG, Assistant Professor
Department of Management, Marketing and Information Systems

Discount Psychology: Why Your Brain Loves Coupons More Than Price Tags Discount Psychology: Why Your Brain Loves Coupons More Than Price Tags

In Hong Kong's retail-obsessed culture, shoppers will flock to stores at the slightest hint of a discount. But which style of discount resonates more—a price slash on the tag or a separate coupon?

This research reveals shoppers react differently to two types of promotions, especially when multiple products are on offer:

  • Price tags showing direct discounts (e.g., HKD50 off on the price tag)
  • Coupons for the same value (e.g., A HKD50 voucher)

Logically, both save you equal money. But here’s the twist: coupons make pricier items look more tempting. Why? When comparing products:

  • With price tags, people tend to obsess over final prices ("Is Phone A really HKD50 cheaper than Phone B after discount?").
  • With coupons, people tend to lazily compare original prices (and skip calculating final prices)—making differences seem trivial ("HKD50 gap on HKD2,000 phones? Whatever!").

This "final price neglect" tricks consumers into overspending, especially in stores. Online? Less risk—websites often force you to see both prices.

Smart shopping hack: Bring a calculator for coupon deals (that "HKD10 off" isn’t always what it seems). Better yet, shop digitally—fewer impulse buys, clearer math.

For retailers? Ditch the price-tag discounts. Want to move luxury items? Wave that coupon like a magic wand.

#Retail Psychology #Coupon Magic #Discount Tactics