Flash sales and price guarantees: How they impact your wallet!
Firms use different pricing strategies to sell products to customers. Customers may wait for lower prices before buying. This study looked at how firms can set prices to make the most profit. They found that firms should either keep prices the same or have occasional sales to attract customers. Offering price guarantees can help firms make more money, especially when only some customers use them. Surprisingly, offering price guarantees can actually make customers less happy overall.