Rethinking the psychology of promotions. How to balance short-term wins and long-term value.

We all love a good deal, but at what expense?

Flash sales, countdown timers, “only 3 seats left”. They’re everywhere, ever present, promotions urging us to act. Mostly because in the moment they work. But while these promotional tactics tap deep into our instincts, they can come with a cost to your business and brand.

And it's not just to margins and profitability, but to meaning and perception people have of your brand.

In this episode, we dig into the psychology behind sales promotions. Why they work. What they trigger. And what brands might be giving up in return.

We examine:

• Scarcity, urgency and anchoring. How short-term offers hijack decision-making
• Brand erosion and shifting reference points. Why overusing sales can cheapen your brand
• The psychology of value, and why perception matters more than price
• How to balance promotion with purpose. Practical tips for brands who want to drive action without damaging trust

We regularly think about hyperbolic discounting and the hidden cost to individuals, but this turns that on it's head and looks at brand hyperbolic discounting. What's the impact of brands making decisions for the immediacy, without the consideration of the longer term?

Rethink your relationship with discount culture, and keep building brands with enduring value in the minds of consumers.

Studies & further reading:

• Worchel, Stephen & Lee, Jerry & Adewole, Akanbi. (1975). Effects of supply and demand on ratings of object value.
• Hodgkinson (2016): ‘Fear of Missing Out’ (FOMO) marketing appeals: A conceptual model
• Ariely, Loewenstein, Prelec (2003): Coherent arbitrariness, stable demand curves without stable preferences

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