The dollar value of a product ($100) above which it is beneficial to express a discount as actual dollars saved vs. as a percent. For example, assume you are discounting a $50 jacket by $5. It seems more significant to a consumer to advertise it as a “10% discount.” On the other hand, if the jacket had an original price of $500 and was discounted 10%, you would be wise to advertise it as a ”$50 price cut.”

So what?

Many consumers fail to detect underlying equivalencies. Instead they rely on the frames provided by marketers (e.g. percentage frame or dollar frame), which may not always be in their self-interest.