Why might a mattress store choose to advertise new mattresses, worth $1,000, as $50 per week for 22 weeks?

2 answers:

8 0

$50 per week is more affordable to most people than $1000 up front. So the customer is more likely to buy it, and the store ends up 50*22 = $1100, so $100 more (which might seem worth it for the customer if they get to pay it over 22 weeks).

Some people might also be enticed by the low price of $50 and think its cheaper.

IgorLugansk [536]3 years ago

3 0

By doing so, they provide the illusion that the payments are cheaper then 1000 dollars, because 50 looks very small, when in reality it's $100 more then what the mattress is actually worth.

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X intercept: y = 0
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anzhelika [568]

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