Insight of the Week

Place Discounts Next to Dissimilar Products

A new study shows that customers are more likely to buy dissimilar products that are next to a discounted product.

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Nick Kolenda
Updated August 18, 2023
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Discounted yogurt between two yogurts. A similar yogurt on the left suffers, while a dissimilar yogurt on the right benefits.

Discounts capture attention.

And they push attention toward surrounding products.

Customer looking at discounted milk with adjacent products being noticed

Similar products seem worse compared to the discount, yet dissimilar products are less impacted because they don't compete. In fact, customers are more likely to buy these noncompeting products because their attention is now fixated in this area (Kan et al., 2023).

Imagine that you're discounting a regular yogurt. A competing yogurt on the right would seem worse.

Product shelf with discounted yogurt on the left. A similar yogurt to the right suffers, while a dissimilar yogurt on the far right is unaffected.

However, a dissimilar greek yogurt on the right would benefit because (a) it doesn't compete with the discounted yogurt, and (b) the discount is pushing more attention toward it:

Product shelf with discounted yogurt on the left. A dissimilar yogurt to the right benefits, while a similar yogurt on the far right is unaffected.

How to Apply

  • Insert New Brands Next to Discounts. Most customers won't seek a new product (e.g., oat milk), so you need to grab their attention by placing it next to a sale item (e.g., regular milk) to penetrate their consideration set.
  • Embrace Discounts From Noncompetitors. Even if street vendors aren't running a promotion, situating their cart next to a vendor that is running a promotion could boost sales due to heightened attention in this area. Especially if the food cuisines are different.

Caveats

  • Don't Sacrifice Organization. Help customers find products they're seeking.

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