Casella Winery used to charge $120 for a bottle of a premium wine but offered a $20 rebate. For Christmas promotions last year, you proposed to sell the same premium wine for $100. You were shocked those sales went down. How could you use your knowledge of pricing psychology to explain a possible cause for the reduction in sales?

A. People do not care how many times they win, as long as they win.
B. People feel better if they have a smaller win or gain paired with a larger loss.
C. People don't like waiting for rewards.
D. People would rather have a series of small losses than a big one.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below B People feel better if t... View the full answer