Topic > Buy one and get half off: is it worth it? - 607

Consumers respond to the "Buy One Get One Half" (or BOGO 1.5) sales promotion because it gives an impression of savings and serves as an incentive for the consumer to get two items for one and a half prices. Perhaps rational consumers evaluate their choices and act systematically to achieve their goals. Marginal changes are incremental changes to the existing action plan. The rational consumer can precede a better decision when he thinks about the margin. They act only if the marginal benefit exceeds the marginal cost. By acting on promotions, consumers will receive better value when purchasing products. On the other hand, if consumers choose to forgo the offers, the promotion does not support consumers' goals. By accepting the promotion, you can obtain a consumer surplus/net savings equal to 50% of a shampoo. Perhaps, his marginal benefit has exceeded the marginal cost, so he alters his consumption plan to fit his goals. Second, the next example can illustrate this behavior. For example, a consumer notices that the local market offers a B...