Consumers & marketing

11 ways consumers are hopeless at math.

You walk into a Starbucks and see two deals for a cup of coffee. The first deal offers 33% extra coffee. The second takes 33% off the regular price. What's the better deal?

"They're about equal!" you'd say, if you're like the students who participated in a new study published in the Journal of Marketing. And you'd be wrong. The deals appear to be equivalent, but in fact, a 33% discount is the same as a 50 percent increase in quantity. Math time: Let's say the standard coffee is $1 for 3 quarts ($0.33 per quart). The first deal gets you 4 quarts for $1 ($0.25 per quart) and the second gets you 3 quarts for 66 cents ($.22 per quart).

More here:
http://www.theatlantic.com/business/archive/2012/07/the-11-ways-that-consumers-are-hopeless-at-math/259479/

 

Interesting article. Thanks for sharing it

 

The best are still the car dealers

They run full page adds in the sunday papers that probably run 40K or more each week . They tell Mr. Average that he can run down with his 2001 Honda and drive home a Caddy CTS for $169 a month or whatever that some people might believe. I couldnt tell you where the nearest Starbucks is within 15 miles or so from where I live and this is the most densely populated state in the country,go figure.

 

FREE is my favorite four letter word......LOL

 

I am quite proud of the fact that I have never have had a cup of Starbucks coffee. I do laugh at the morning line of cars in the drive thru at SB.

 

I'm proud of you Joe!!

When the recession hit,My daughter told me she had to cut out Starbucks, went to convenience store coffee or god forbid,making it at home.