The New York Times wrote about the fact that people tend to overestimate differences between small quantities and underestimate differences between large ones”.

For instance, people tend to see a larger difference between 5 cents and 500 cents than between 5 cents and $5.

Conclusion: Next time you lower price, show the markdown in cents or rupees.

“I can put down the price of this Hummer by an extra 50,000 cents if you take the mp3 stereo, which is only a 2 grands option”

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