Introduction
During sale season, we may find ourselves in front of an offer that starts counting down on the screen, our heartbeat quickens and we are overcome with excitement to make a quick purchase before the time limit expires.This common daily experience raises an important psycho-economic question: why does the word "discount" turn into an emotional emergency in our minds? It seems to us that we are about to win an amazing deal, but the irony is that the consumer often thinks they have emerged victorious when in fact they have gained nothing tangible... perhaps lost money or bought something they don't need.
Research conducted by Standard Life in 2025 revealed that nearly a third of participants regretted their Black Friday purchases, with 33% saying they only bought items because they were on sale, and 32% admitting they didn't really need them.Even worse, 17% never used what they bought, while 14% admitted that they spent money they could not afford (Standard Life, 2025). These behaviors reflect phenomena known in behavioral economics: emotion rather than thought at the moment of purchase, impulse rather than comparison of options, and expectation of satisfaction rather than evaluation of the true value of the item.
In other words, decisions under the influence of the "discount" sign are often driven by momentary emotion rather than actual need. This raises the central question: why do we act as if the discount is the opportunity of a lifetime, when in fact it shifts the purchase decision from "do I need this product?" to "I don't want to miss this opportunity"? In this paper, we will argue that the discount is no longer a price reduction, but has become an engineering of the fear of missing out and a pressure to make an accelerated decision.
Theme 1 - Discounting as a Fear Industry: From FOMO to Emergency Buying
1.1 How does a discount produce a threatening situation?
Psychologically, the "Save your money!" promise of the discount turns into an implicit message of "Don't lose this opportunity!". In other words, the mind shifts from expecting a gain to trying to avoid losing a golden opportunity. Behavioral scientists describe this shift as Loss Aversion, as it turns out that we are more likely to avoid loss than we are to seek gain (Friedman, 2023).FOMO (fear of missing out) is not just a fleeting feeling, but a powerful motivational system in the brain that sounds the alarm: "Seize the offer now before it's too late!" This system stems from our social and personal need to avoid regret and the feeling of being left empty-handed (Friedman, 2023).
Stores use various tools to create this sense of temporal threat; countdowns, electronic timers, and phrases like "last two items left" are all designed to create a sense of urgency and scarcity that prompts us to make a quick decision before we "lose the opportunity." This system stems from our social and personal need to avoid regret and the feeling of being left empty-handed.Recent marketing studies have shown that these tactics are highly effective: For example, a 2024 survey found that more than half of consumers said that FOMO-based marketing tactics-such as regressive timers or "only a few left"-prompted them to buy impulsively without planning (Ambos, 2025).Similarly, 60% of millennials reported making a purchase within 24 hours of seeing a limited time or quantity offer, directly motivated by FOMO (Ambos, 2025).
These figures confirm that discounting is employing our loss-avoidance instincts: the consumer feels that not buying right away means missing out on a once-in-a-lifetime gain, so the anxiety of missing out feels like a real threat. It is not surprising that marketing experts describe the situation as akin to putting the mind in a buying emergency.Research shows that when we are under time pressure, mental shortcuts and automatic decisions take over (Shonk, 2025)-exactly the environment that countdowns and flash sales create. The result: analytical thinking activity (executive control) is reduced, and the voice of anxiety is raised: "Buy now before it's too late!", replacing reason with emotion in the moment of decision.
1.2 Discounting as an emotional event - not a mathematical value:
The brain treats discounts as an exciting event rather than an objective price value. Advertisements and discounts are presented to us as a celebratory event: lights, bright red logos, a meter going down...all stimuli that activate the brain's reward system.Studies in behavioral neuroscience have shown that the mere anticipation of a stimulating deal activates the release of dopamine in the brain's reward centers (Friedman, 2023), generating a sense of happiness and momentary excitement. This explains why we buy because it "feels good" in the moment, not because we necessarily need the product.
In a distorted equation of value, the unconscious perception becomes: "If I buy quickly, I'm a smart customer and a winner, if I hesitate and delay, I'm a loser!"-as if delaying a purchase means missing out on a personal victory.One study found that a consumer "may not actually need or even want the discounted item, but feels a temporary euphoric rush and a sense of being a smart shopper when making a purchase" (Shonk, 2025). This emotional "rush" is what the consumer actually buys, more so than the item itself.
In essence, discounting is an emotional event that appeals to our instincts: the thrill of winning, the pleasure of the hunt, and the avoidance of regret. To reinforce this emotional dimension, impulse buying is often portrayed as a test of consumer savvy and skill: those who grab the deal first are described as "knowing where the shoulder is," while those who miss the offer may feel stupid or at least like they have missed out on the opportunity of a lifetime.This feeling is also fueled by the knowledge that others may get the deal if we don't - it becomes an implicit competition.
In experiments, the mere thought of missing an opportunity has been shown to trigger immediate negative emotions (anxiety and pre-existing regret) that drive us to make a purchase to avoid this anticipated regret (Friedman, 2023). The decision is thus skewed from cost-benefit to self-validation: we buy not for the actual value of the product, but to prove to ourselves that we did not miss out on a win.Ironically, 43% of consumers expressed negative emotions such as heartbreak and regret when they missed a temporary offer or flash sale (Ambos, 2025), which means that many buy the next time just to avoid this painful feeling of missing out. In short, discounting becomes a mental game in which the consumer feels like a hero, winning a prize before others swoop in or time runs out - and this sense of momentary victory overshadows the calm reflection on the value of what they are actually getting.
The second axis - The discount shortcuts consciousness: How does it disrupt comparison, substitution and value?
2.1 Canceling "price history": the old and new price trick
Modern discounting tactics rely on the well-known psychological phenomenon of the Anchoring Effect - where the first number presented to the consumer anchors their expectations of value. Some merchants raise the original price of a product for a short time and then announce a "deep discount" that almost brings the price back to its previous level (Shonk, 2025).The consumer is tricked into thinking they are getting a bargain, compared to the original high price offered (at which the product may never have actually been sold) (Shonk, 2025). In other words, a fictitious reference price is inflated so that the consumer compares the discount against it rather than against the real value of the item or market prices (Shonk, 2025).
The non-profit organization Consumers' Checkbook tracked the prices of items at 25 major supermarket chains over a 33-week period and found that 8 of them offered more than half of their products at falsely discounted prices (i.e. after raising the reference price) on a weekly or semi-regular basis.Among the "worst offenders" were popular stores that showed their products "on sale" most of the time, with one (Foot Locker) even showing that 98% of items were "on sale" almost the entire period! In contrast, only two companies (such as Apple and Costco) actually adhered to fixed prices and did not resort to this trick (Shonk, 2025).
This data shows that a lot of what we see as huge discounts are actually fictitious discounts that result from inflating the previous price. The issue is that consumers tend to believe the price anchor displayed in front of them without checking; when they see the phrase "the price was 100, now it's 60", they focus their mind on the 40 that they "saved", and forget to ask the most important rational question: is this item worth paying 60 at all?Consumer psychologists describe this behavior as the mind fixating on the first number (100 in the example) and not moving much from it (Shonk, 2025), feeling that 60 is a relatively good deal. The historical perception of the product's true price or intrinsic value is thus removed from consciousness. Not surprisingly, this tactic succeeds in creating a false sense of urgency as well, as the consumer believes that the offer will not last long at this discounted price (Shonk, 2025).
For us as consumers, the result is incomplete awareness: we compare the discounted price to a price "provided by the merchant" rather than comparing the price to the value of the product or to competitors' prices. Unfortunately, real-life experience has shown that trying to sell products at a fair price without misleading the consumer with a high price is not popular; when JCPenney tried in 2011 to eliminate fake sales and offer permanently discounted prices all the time (a "low price every day" strategy instead of a seasonal sale), its sales dropped precipitously.Customers were used to seeing discounts and feeling triumphant when making purchases, but without the "50% off" sign, they lost interest even though the new prices were fair. The company quickly returned to the traditional discounting method after the experiment failed (Shonk, 2025).This incident confirms that the consumer's perception of the value of the price is psychologically conditioned by the presence of an advertised discount rather than the price itself. Hence, we argue that the discount succeeds in hijacking the historical context of price comparison: instead of thinking about how much this product was priced a month ago or at another store, the buyer compares the price to the old advertised price in real time, which may have been made up.
2.2 Narrowing alternatives and eliminating market comparison:
The discount also creates what could be called a "narrow window" for decision-making: the offer is limited in time or quantity, so you either buy now or miss out on everything. This emergency time frame effectively eliminates the opportunity to slow down and make any objective comparison between alternatives.A consumer under the influence of a countdown or "ends tomorrow" will have no time or inclination to ask: Is there a cheaper alternative? Is this brand the best or can I get higher quality for a similar price? Is now a good time to buy or will there be a better sale later?
Another common practice that narrows consumer alternatives is exclusive offers or buy-one-get-one-half-price bundles that make comparing different brands more complicated. When a store puts a particular brand on a flash sale, the consumer is less likely to take the time to look at the shelf and compare prices of other brands or alternatives that may be better value. The idea that they will lose out on the offer for that specific product distracts them from considering other products.One of the tips mentioned in the Harvard report was: "Before you snatch up that can of laundry detergent with the '-$2' sign, look at the unit price (liter or kilo) and compare it to its competitors; you may discover that another alternative - like the store brand itself - is still cheaper even without a discount (Shonk, 2025)." (Shonk, 2025).This example shows that focusing on a single item with a discount narrows our perspective, while horizontal comparison puts things into perspective. Unfortunately, in the heat of the moment, the consumer rarely does this simple act. The temptation of time and the threat of missing out on the offer makes their field of vision too narrow for the item in front of them.
A study from HubSpot showed that 45% of consumers said they are more likely to make a purchase decision if the offer expires quickly (within a day or weekend) (Ambos, 2025), an indication that nearly half of people admit that they don't consider alternatives much when they see a narrow window of opportunity.In short, the temporal fear engineering created by the discount leads the consumer to an isolated decision: they focus only on the discounted product in front of them, forgetting the vast market around them. The question each of us should be asking is: Has this discount eliminated my ability to consider other available options? If the answer is yes, we need to take a step back.
Theme 3 - Unmasking the Hoax: Rules that expose the illusory discount
3.1 The Price History Rule:
"If you don't know the price history, the discount is meaningless."-This first rule is not to fall for any discount percentage before you check: What was the price of this product a week ago? A month ago? Three months ago? Did the store recently raise the price and then lower it? Knowing the real reference price is essential to judge any offer. In our digital age, this task is made easier with historical price tracking sites or even laws that protect the consumer.In the European Union, for example, laws require all retailers to clearly advertise the lowest price at which the product was sold during the 30 days prior to any sale announcement. This means that if a store claims that the price of a TV "was €1000 and became €700", €1000 must be the highest price over the past month and not a fictitious inflated price. Such rules are specifically intended to expose the scam of advance price hikes (European Commission, 2023).
As an individual consumer, you can apply this by asking yourself directly: "Have you followed the price of this product before?" If you don't know its previous price at all, it makes no sense to believe that you are really saving. Don't give in to advertising before you check for yourself. Search the internet for the product - you will often find information about its previous price range or those of its competitors.
3.2 The Surrogate's Rule:
When tempted by a particular offer, pause and ask: "Do I have other alternatives that would replace this item or offer better value?" Try writing down 3 possible alternatives to the product on a piece of paper: perhaps a product from another company, a different model, or even a decision to postpone the purchase for the time being.If you find at least one alternative with a higher value or better price, that's enough to neutralize the lure of the current discount. For example, if you see a pair of sneakers that are 30% off and the price after the discount is $70, do a quick search: is there a shoe from another brand of similar quality that is priced around $70 without the discount? If you find something nearby, you'll realize that the real value of the item is around $70 in the market, and the 30% off talk may be misleading because the first price was overpriced.
Ironically, marketers recognize the power of comparison and try to prevent it, as we've seen. This is where you have to deliberately broaden your frame of vision. One expert advised: "Always compare across products - don't let the store limit you to only their product" (Shonk, 2025). A store may offer you a refrigerator for "500 when it was 650," while another refrigerator of a different brand may always cost 500 and have better specifications.Don't buy in isolation. Look for alternatives in another store or online; sometimes a few minutes of searching on your phone for the product name is enough to see prices on other sites. If the excitement disappears after a quick comparison, it is a strong indication that the purchase decision was emotional and not based on a real advantage of the deal.
Studies have found that the discount effect actually collapses when a consumer makes a simple comparison with a similar product (Shonk, 2025), because the comparison restores the logical context of the price and reveals the true value of the offer. Also, remember that you have the right as a smart shopper to question: Why is this particular product on sale? Sometimes there are reasons (old model, stock clearance) that mean the newer alternative is better for you even if at a slightly higher price.Other times the product is good but the alternative is available at a fair price with no offer. In any case, doing the "3 Alternatives" exercise will reveal whether the discounted price is really a blessing in disguise or just one option among many.
3.3 The opportunity cost rule (the 24-hour rule):
This rule centers around a simple but essential question: "What will I give up if I buy this now?"Before you hit the "add to cart" button out of enthusiasm, remember that spending something now means you will be less able to spend on other items during the month or on a savings goal, so it is wise to freeze the decision for 24 hours (or at least a few hours) as a practical test.Tell yourself: "I'll wait until tomorrow." If the offer ends, it's okay - it will probably be repeated or I'll find another one, and if it doesn't, I've given my brain a chance to calmly reassess. In fact, behavioral economists always recommend trying to slow down the buying decision under pressure (Shonk, 2025). Speed is the marketer's weapon and the consumer's opponent.
One strategy is to involve another trusted party - such as a friend or partner - in the purchase decision, so that you consult them during the waiting period (Shonk, 2025). This will often help you see aspects that you have overlooked (e.g., "Don't you have something similar?" or "Is this really a priority right now?").During the freeze, it's also important to think about your overall budget: will this purchase affect your ability to pay a bill or save money this month? Many small purchases seem isolated, but when you add them up, as we've discussed, they can have a big impact.The rule here is: if a discount won't live for another day, it's not worth your trust. A real discount somehow lasts, and offers that "die" within hours are often a trap to force you to make an immediate decision.In addition, many stores come back with similar offers later - meaning you likely didn't miss out on anything substantial. Post-purchase analyses have shown that impulse buying generates regret in about 44% of shoppers (Galov, 2025), while waiting significantly reduces the likelihood of regret.
Think of the 24 hours as your savior: If the craving passes a day later and you're no longer excited, it was a fleeting impulse you survived. If the need remains, you may decide to buy knowing you're thinking about actual need and value and not just fear of missing out. It often happens that the same offer is extended or another similar offer appears later - offers are never-ending in the world of consumerism.Don't let the opponent buy your decision and take over your will. Ask yourself in the end: Is it me who buys the item, or the opponent who buys my decision and pushes me? If you feel that the desire is more driven by external factors (time constraints, fear of regret, atmosphere) and not by your actual need and conviction, take a step back. A truly winning deal is one that fulfills a need you have without compromising your financial and temporal priorities.
Conclusion
In conclusion, it is clear that "discounting" is no longer a simple economic issue related to lowering the price, but a complex behavioral phenomenon that touches the depths of the human psyche. It is part of what can be called the economics of fear rather than the economics of price. The consumer under the influence of discounting does not deal with abstract numbers, but with feelings of anxiety of missing out, the momentary euphoria of winning, and self-justification that he made the right choice.From a broader perspective, this raises a psychological question beyond the purchase decision itself: How can we regain our rational control in the face of fear and temptation? The value of any good to the consumer should not be measured by "how much the price has dropped today", but by how much they really need it, what other alternatives are available, and the opportunity cost of what they will pay.A discount may lower the price in cash, but it may raise the cost of the decision for the buyer if it leads to impulsive buying or impulse buying.
We've seen how some people regret it later and realize that what they considered a "quick buck" actually cost them resources that could have brought them greater satisfaction in the long run. Consumer awareness is the first line of defense: to realize that not every discount is a real deal, and not every missed opportunity is a real loss.Let's always ask ourselves before buying: Does this discounted price make this product a necessity or just a contrived opportunity to lure my fear? Is the value of what I get more valuable than what I leave behind (money, time, or other opportunities)? Adopting this mindset does not mean missing out on good deals, but rather seizing them with a conscious mind rather than a burning emotion.Only in this way can we turn a discount from a psychological trap into a real economic opportunity when it suits us, and avoid turning it from a promise of profit into a cause for regret or loss. In other words, the discount should buy your product, not your decision; realizing this fact is the biggest win for the smart consumer in the age of FOMO.
Comments