American Marketing Association Professional Certified Marketer (PCM) Content Marketing Practice Exam

According to the rule of 100, what discount is most likely to be taken advantage of?

1. 20% off

2. $250.00 off

3. 25% off

4. $25.00 off

The correct answer is: $250.00 off

The rule of 100 suggests that when a product's price is under $100, a percentage discount is more attractive to consumers. Conversely, when the price exceeds $100, a dollar-value discount tends to be more appealing. This principle operates on the idea that consumers often perceive dollar amounts as more significant figures when the total price is higher since they relate more to the actual savings in hard currency rather than the percentage of the total price. In this scenario, a discount of $250 off is compelling for an item priced above $100. This number signifies substantial savings, making it more likely that consumers will appreciate the offer and take action, as it represents a significant reduction relative to the item's cost. In contrast, percentage discounts (like 20% or 25%) would be less appealing on higher-priced items, as the monetary savings may not resonate as strongly with customers. Thus, the dollar amount discount at this price level aligns with consumer behavior and perceptions of value, leading to the conclusion that it is the most likely discount to be taken advantage of.