The darker side of discount culture: An overview

It is an undeniable fact that markets in India offer discounts as a business strategy to attract customers and boost sales considerably.

- P.V. LAXMIPRASAD

Of course, it remains the most dynamic principle of core sectors like commerce, industry, and business. Customers are naturally curious about finding offers from time to time.

They often visit malls hoping for discounts as a pleasant shopping experience. Discount offers always attract customers. "Buy one and get two" is usually catchy, tempting customers to purchase at discounted rates. Why do Indians look at discount offers?

Inarguably, Indians are passionate about discounts because it is deeply rooted in their culture of bargaining and negotiating prices. Haggling (bargaining) is expected. Discounts can be seen as a normal part of purchasing to save money and get the maximum deal. It is a sort of human behavior that focuses on value for money.

If bargaining is considered the most common practice in India, especially in local markets, sellers usually expect customers to negotiate prices. Bargaining is typically done in market places where product prices are not fixed.

In quality analysis, brand reputation is largely affected. Price sensitivity in Indian markets is highly influential. Discounts help retain old customers and lure new ones to shop on e-commerce platforms where they get high discounts and free home delivery. But offering discounts can have positive and negative impacts on a company's profits. Discounts can attract customers but reduce profit margins. Any discount offer makes customers feel like they gain something.