Study • Civic · Other
Salience and Taxation.
Chetty et al. (2009), 'Salience and Taxation'.
Summary by Mark Egan
A field experiment conducted in stores in California tested whether purchasing behavior was affected when prices for some goods were raised at the till or on the price-tag. The authors found that tax-inclusive price tags reduced demand by 8%, likely due to them being much more salient whereas being charged later at the till had no significant effect on purchase behaviour.
Tactics used
TACTICS
Increase Salience
Behaviors addressed
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