Effects on purchasing power of a customer due to discount importance?
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There are two reasons for consumer wanting to purchase: 1. necessity items and 2. vanity items. The psyche of discount satisfies both.
In the case of necessities, consumers are likely to be willing to buy more tha usual. This results in a short burst of purchasing power that builds up the consumers’ own inventory. The example is once-a-while big discount on tissue papers where consumers ostentatious purchase power seems to jump, but the result is that they will less likely to buy tissue papers for a while. This results in a seemingly less purchasing power after the surge.
The second consumption is strictly for vanity purchase where consumers “just can’t pass a good buy”. This results in a psyche which is better phrased as “ stealing is better than sex”. This will also result in a sudden surge inthe purchase power on the part of consumers. In California, when a celebrity passes away, the estate is usually contracted to an auction company for a quick liquidation sale. Throngs show up and frantically grab everything on sight because they know the auctioneer’s job is to turn everything into cash ASAP, so it implies a discount on everything. The throngs in the frenzy do not necessarily need to buy but this event nevertheless would cause a consumer purchase power surge on the auction date: books, chairs, pianos, potteries, or anything that resembles luxury and memorabilia items—you name it.
In the case of necessities, consumers are likely to be willing to buy more tha usual. This results in a short burst of purchasing power that builds up the consumers’ own inventory. The example is once-a-while big discount on tissue papers where consumers ostentatious purchase power seems to jump, but the result is that they will less likely to buy tissue papers for a while. This results in a seemingly less purchasing power after the surge.
The second consumption is strictly for vanity purchase where consumers “just can’t pass a good buy”. This results in a psyche which is better phrased as “ stealing is better than sex”. This will also result in a sudden surge inthe purchase power on the part of consumers. In California, when a celebrity passes away, the estate is usually contracted to an auction company for a quick liquidation sale. Throngs show up and frantically grab everything on sight because they know the auctioneer’s job is to turn everything into cash ASAP, so it implies a discount on everything. The throngs in the frenzy do not necessarily need to buy but this event nevertheless would cause a consumer purchase power surge on the auction date: books, chairs, pianos, potteries, or anything that resembles luxury and memorabilia items—you name it.
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