So the JC Penny’s effect is a phenomenon in consumer psychology where consumers react negatively to something even though it is better to them but it doesn’t feel better.
It is named after the store JC Penny’s who got rid of sales and instead lower prices to what they would be on sale all the time. This was better for the consumer but consumers liked sales so they hated it.
I can 100% confirm that the “discount” perception is a huge aspect of the decision making process for a purchase.
I sell a shitload of stuff on Facebook Marketplace because I buy, sell, fix, refurbish electronics and appliances
I know from experience that the way to sell something for $100, is to first post it for $120, and then 8 minutes later reduce the price to 100. People see the crossed out 120 and they think *oh my god this is my chance"!
I’ve been buying and selling for almost 30 years, I was like the first user on eBay LOL… This is such a baffling but real phenomenon! For example on ebay, if you want to get 30% more than market value, post your item for a dollar and let people fight! The idea of a deal, even when it doesn’t exist, is so potent.