Rule of 100 is that, if your company is giving discount. You have to check, which figure will attaract the customers to buy your product or service.
For example. if produce price is $20 and you want to give $5 off. What will attarct more $5 off or 25% off. In Rule of 100, we will choose 25% off.
What you think about it? is this myth work or not?
There's more to it than what you described. The rule of 100 means if a $ discount is a larger number than the % people will react more favorably to the $ discount. And vice versa.
So in the case you described, a 25% discount works better than a $5 discount on a $20 item. But a $500 discount works better than a 25% discount on a $2,000 item.
As for my opinion, I don't doubt that it works for the masses. I try to buy things on the basis of need & research so this would have little bearing on informed decisions.
@Dave yes you are right. I have missed 2nd part of rule.
