How retailers use dollar discounts and percent markdowns in stores affects purchases as much as the desire for the item.
James Lowry, former Ball State University professor of marketing, co-authored a study that appeared in the Marketing Management Journal.
A survey of 387 consumers revealed that goods costing thousands of dollars, such as Rolex watches or BMWs, are more appealing when discounts are advertised in dollar amounts instead of percent markdowns.
The study also showed that consumers found a bag of $3 potato chips advertised with a 20 percent markdown more appealing than a bag labeled with a 70-cent discount, even though the dollar figure represents a larger savings.
Candi Cook, manager of Discount Den in the Village, said items advertised with a percent discount don't generate much interest among her customers.
"People like seeing the original price of an item and what it costs now," Cook said.
Promotions that compare the combined price of two discounted items with the price of a single, full-price item are also popular, Cook said, especially on apparel like sweatshirts.
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