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The reasons for 'buy-one-get-one-free' policy.
Many hotels now provide customers with buy-one-get-one-free offers for lunch and dinner buffets. Can you explain with a diagram why hotels adopt this pricing strategy?
- 泰迪昆頓Lv 61 十年前最愛解答
If u do a simple calculation, you will find the that "buy-one-get-one-free" is totally equal to 50% off discount psychologically if you go with 1 friend (2 ppl). but how about 3 ppl ?
you need to pay for 2 ppls' buffet cost if 3 ppls go in. just 33.3% off.
ok this is the different. if they promote 50% off, there will be no arguement that their profit will be 50% off. what if just "buy-one-get-one-free" ?
50% customers are in old no (33.3% off only) and 50% customers are in even no (50%off). In average, it is only 41% off only..
ok see the different ? just give out 41% off discount but customer will feel that it is 50% off psychologically, both benefit to customer and hotel, win-win situation.
2007-05-20 00:18:59 補充：
I think you think too much... it is not any "economic theory", it is a so-called "pricing strategy" in marketing.