The Benefits of Discounts: How Do They Improve Consumer Perception and Foster Loyalty?

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Discounts are a powerful tool in any merchant’s arsenal, not only because of their ability to increase sales in the short term, but also because of their positive impact on consumer perception of the value of products. However, it is crucial to understand that discounts have complex effects and can be a highly beneficial strategy if handled correctly. In this post, we’ll explore the positive aspects of discounts and how they can improve consumer perception and foster loyalty. If you want to know the challenges and negative effects of discounts, I invite you to read my other post about them here.


Implementing discounts as part of the marketing strategy can offer multiple advantages for businesses, not only in the short term, but also in terms of building a lasting relationship with consumers. Here are some of the key benefits:

  1. Immediate Increase in Sales: One of the most obvious benefits of discounts is the immediate increase in sales. Consumers tend to take advantage of offers and promotions, resulting in a significant increase in sales volume during the discount period.
  2. Improved Perception of Value: Discounts can improve the perception of value among consumers. By receiving a discount, consumers feel like they’re getting more bang for their buck.
  3. Appeal to New Customers: Offering discounts can attract new customers who may not have considered the brand before. Promotions can serve as an incentive for these consumers to try the product or service.
  4. Inventory Liquidation: Discounts are an effective tool for liquidating old inventory or seasonal products. Not only does this free up space for new products, but it also helps recoup investment costs.
  5. Increased Customer Loyalty: When discounts are used strategically, they can increase customer loyalty. Rewards programs and personalized offers, such as those implemented by Starbucks, make customers feel valued and understood.

Success Stories:

To illustrate how discounts can influence consumer perception, let’s look at some examples of well-known brands that have used discount strategies effectively.

  1. Zara: The renowned fashion brand uses strategic discounts during its sales periods to not only increase sales, but also to manage inventory and attract a greater number of customers to its stores. During sales, Zara offers discounts of up to 50%, which creates a perception of significant value among consumers. However, Zara balances this by limiting the duration of discounts and maintaining a perception of high quality and exclusivity in its products.
  2. Amazon Prime Day: Amazon has perfected the use of discounts with its annual Prime Day event. During this day, Amazon Prime members can access exclusive discounts on a wide range of products. The discounts, which can reach up to 70%, generate enormous expectation and urgency among consumers.
  3. Starbucks Rewards Program: Starbucks uses discounts and promotions as part of its rewards program to build customer loyalty. Through personalized offers and discounts on specific products, Starbucks manages to maintain a constant connection with its consumers.


Discounts are a powerful marketing tool that, when implemented strategically, can increase sales, improve perception of value, and attract new customers. By understanding consumer psychology and applying these strategies, your business can strengthen its position in the market and foster long-term customer loyalty. Don’t forget to check out our post on the dangers of discounts for a full overview of this strategy.

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