Philadelphia, PA (PRWEB) August 27, 2013
Renowned professional poker player, speaker and author Annie Duke has released a memorandum exploring the reasons why individuals are attracted to sale items. When confronted with a bargain situation, Duke says, people believe they receive the greatest utility for the purchased item and come away from the purchase more happy than if they had paid full price. Duke explains:
“As an example, when offered a delicious, high-end chocolate truffle for 25 cents versus a lower end Hershey’s Kiss for 1 cent, 40% of people choose the truffle while 40% choose the Kiss. But when the price of both chocolates was dropped by 1c - making the Kiss free and the truffle 24c - 90% of people now chose the Kiss. Why the reversal in preference? The price difference between the two items remained constant at 24c but when the Kiss was free people were significantly happier to get the item… once the Kiss is free it’s endowed with more utility (in terms of happiness or enjoyment). So people choose something they want less simply because they feel they are getting a bargain.”
Citing several studies conducted by behavioral economics expert Dan Ariely, Duke asserts that though sale items make us feel good in the short run, in the long run, we realize that the bargain may not have been worth what we paid at all.
“The moral of the story,” says Duke, “is people just love a bargain - even if it isn’t really what they would prefer at full price.”
About Annie Duke
Annie Duke has a strong track record of success in the world of poker. She first burst onto the scene at the 1994 World Series of Poker, where she cashed in three events included making the final three tables of the Main Event. A decade later, she won her first WSOP bracelet and in 2010 became the NBC National Heads-Up Champion bested runner-up, Erik Seidel. Duke has appeared on Celebrity Apprentice and tutored Hollywood A-listers including Ben Affleck and Matt Damon on the finer points of the game of poker. She is also the author of three books on poker: Decide to Play Great Poker; Heads-Up Tournament Poker; and The Middle Zone. She also authored an autobiography How I Raised, Folded, Bluffed, Flirted, Cursed, and Won Millions at the World Series of Poker.
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