Companies compete in ingenuity to capture the attention of consumers. Among the most widespread strategies: the famous crossed out price. “Before €100, now €50!” “. A simple, direct and effective promise, which often triggers an impulsive purchase. But behind these attractive offers sometimes hides a less transparent practice: offering “discounts” (sometimes on a price that was never real, artificially inflated to give the illusion of an exceptional deal). In the short term, this can generate sales. In the long term, ethical, legal and loyalty questions arise. Decryption.
1/ The psychology of the crossed out price
The crossed out price plays on a well-known cognitive bias: the perception of value and scarcity. Seeing a reduced price, even a fictitious one, triggers the consumer’s impression of a unique opportunity. Three mechanisms reinforce this effect:
- Fear of missing out (FOMO): the product seems even more expensive tomorrow.
- Instant gratification: Buying at a discount provides an immediate feeling of victory.
- Anchoring: the brain takes the initial price displayed as a reference, and gauges the value of the product in relation to it.
This psychological manipulation is extremely effective: it encourages quick purchases and creates the illusion of a good deal.
2/ Legal and regulatory risks
Offering fictitious discounts isn’t just a matter of ethics: in many countries, it’s illegal. In France, the Consumer Code requires that the initial price correspond to a rate actually charged during a given period.
Violators are exposed to financial penalties, removal of advertisements, and even trials for misleading advertising. But the most dangerous impact remains reputation: a customer who discovers that he has been deceived loses confidence and could turn to the competition.
3/ The consequences on loyalty
While fake discounts boost sales in the short term, they undermine confidence in the long term. Today, consumers and online communities check historical prices and compare offers. A deceptive practice can quickly go viral and cause lasting damage to the brand image.
The concrete impacts:
- Loss of credibility and trust.
- Negative word of mouth amplified by social networks.
- Reduced customer loyalty: the consumer stays for the price, not the brand.
4/ How to spot fake promotions
For leaders and marketing managers, identifying these practices is essential:
- Crossed out price never actually practiced.
- Permanent promotions, making the discount illusory.
- Comparison with the market: a price crossed out above the market is suspect.
- Regular audits of promotional campaigns help maintain transparency.
5/ Ethical and effective alternatives
There are strategies that drive sales while building trust:
- Real and temporary discounts: offers limited in time.
- Loyalty programs: points or benefits for regular customers.
- Bundles and bundled offers: combine products at advantageous prices.
- Highlight added value: quality, service or experience rather than simple price.
- Full transparency: clearly display the usual price and actual discount.
These practices attract attention, boost sales and create a lasting relationship with customers.
6/ Trust, pillar of marketing
Trust is today a strategic asset. Consumers are informed, demanding and critical: misleading on prices is a risky bet. Conversely, transparency and honesty create loyalty and positive word of mouth. Sustainable brands prioritize credibility over the immediate effect of a fake discount.
7/ Advice for managers and marketers
- Check price history before any discount.
- Avoid permanent promotions.
- Highlight real value rather than perceived savings.
- Train teams on the rules on advertising and pricing.
- Communicate with authenticity: transparency is a powerful lever for loyalty.
