“Buy 3 Get 1” Is the business strategy in place?

There are buying and selling in the market like the consumer market, in the past you could find the department stores🛒where customers had to wait until the inventory was taken before there was a clearance sale. And on the most prosperous Friday and weekends there were few promotion activities. Also during the golden period of large-scale festivals, price reduction activities were even more unattainable. Many years ago, the editor came to the UK M&S, Bxxts and Cath Kidsxx have been popular “Buy 3 Get 1”.

Under the changing circumstances of today, online shopping platforms are emerging. Recently, the more aggressive stores I visited, including JxC and mujx they also have shopping bundle offers. To analyze the effectiveness of the promotion, of course, it depends on which kind of promotion is the most attractive for consumption. Which method of purchase would be preferred.

Economics is very practical and very interesting. It is used to explain daily consumption behavior. Among them, it talks about the price elasticity of demand (Price elasticity of demand). Generally speaking, when the absolute value of the price elasticity of demand is less than one, it means that the goods can be inelastic. That is, when the price of goods changes, the impact on demand is small, and in theory such products can be increased in price. Conversely, when the absolute value of the price elasticity of demand is greater than 1, the item can be called elastic, and this type of product can only be promoted when the price is reduced. When the price elasticity of demand is exactly 1, it is said that this particular product has exact elasticity to maximize profit.

In addition, the law of diminishing marginal utility (Law of diminishing marginal utility) explains that as the number of consumer products increases, even if the marginal utility is still positive, it will gradually decrease. The increase in the contribution of total utility is becoming less and less obvious.

Purchasing this behavior will definitely increase personal satisfaction with marginal utility, but experts have just explained that for example the marginal utility of the first product is 85, the satisfaction degree of the second, third and fourth items must be diminishing. It depends on how much satisfaction an individual customer’s shopping brings.

Last few weekday I went to a chain store to line up to pay, and the store had a “buy 3 get 1 free” promotion. It has also been observed that male customers have less flexibility in demand than female customers. Female customers are more willing to spend time to pick two or three more items, especially if they have already selected two more items, it is really easy to fulfil. Shopping is a part of life, especially on happy Friday and weekend. ㊗️ Things are useful! happy shopping!