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Essay / Buy one, get half: is it worth it? - 607
Consumers respond to the “Buy one, get one half off” (or BOGO 1.5) sales promotion because it gives the impression of savings and encourages the consumer to buy two items for one and a half. price. Rational consumers may evaluate their choices and act systematically to achieve their goals. Marginal changes are incremental changes to the existing action plan. The rational consumer can anticipate a better decision by thinking about the margin. They only act if the marginal benefit exceeds the marginal cost. If they take advantage of the promotions, consumers will receive better value when purchasing the products. On the other hand, if consumers choose to forgo the offers, the promotion does not support their goals. By accepting the promotion, she can realize a consumption surplus/net savings of 50 percent on a shampoo. Perhaps his marginal benefit was greater than marginal cost, which changes his consumption plan to suit his goals. Second, the following example can illustrate this behavior. For example, a consumer notices that the local market offers product B....