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.
A&W had a 1/3 lbs burger to compete with McDonald’s quarter pounder and it didn’t sell people because thought it was smaller than a 1/4 lbs burger.
McDonald’s also had a ”Third Pounder” and it had the same issue
Worked cashier during that time. People are some of the dumbest people
Perfect example
Is there any actual proof of that? Because I see plenty of restaurants advertise 1/3 lb burgers these days.
The problem wasn’t that they had a 1/3rd pound burger, it’s that they advertised it in direct competition with a 1/4 pound burger at the same price and people were too dumb to know that 1/3 > 1/4 because 4 > 3.
https://www.awrestaurants.com/blog/memories-history/the-truth-about-aws-third-pound-burger-and-the-major-math-mix-up/
They did re-do the advertising… decades later…
https://www.awrestaurants.com/press/press-release/101921-aw-rebounds-from-worst-marketing-fail-with-burger-for-math-challenged/
“1/12 lb more beef then a quartet pounder” would have been a great marketing slogan!
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