Apparel Adjustment: 40% Off Is the New 25% Off

The video discusses deflation in the apparel industry, highlighting how consumer spending per unit has decreased. It reviews historical pricing trends, noting a peak in 2001 and a decline during the 2009 crisis. The average price remains below historical highs, partly due to consumer expectations for discounts. The video explains the psychological impact of discounts, driven by dopamine, which makes consumers crave more deals.

What is the significance of hormonal reactions to discounts in shopping behavior?

Explain the role of dopamine in consumer behavior related to discounts.