The 11 Ways That Consumers Are Hopeless at Math

[jeffrey]

You walk into a Starbucks and see two deals for a cup of coffee. The first deal offers 33% extra coffee. The second takes 33% off the regular price. What's the better deal?

"They're about equal!" you'd say, if you're like the students who participated in a new study published in the Journal of Marketing. And you'd be wrong. The deals appear to be equivalent, but in fact, a 33% discount is the same as a 50 percent increase in quantity. Math time: Let's say the standard coffee is $1 for 3 quarts ($0.33 per quart). The first deal gets you 4 quarts for $1 ($0.25 per quart) and the second gets you 3 quarts for 66 cents ($.22 per quart).

The upshot: Getting something extra "for free" feels better than getting the same for less. The applications of this simple fact are huge. Selling cereal? Don't talk up the discount. Talk how much bigger the box is! Selling a car? Skip the MPG conversion. Talk about all the extra miles...

The 11 Ways That Consumers Are Hopeless at Math - Derek Thompson - The Atlantic

[bjl584]

[i]You walk into a Starbucks and see two deals for a cup of coffee. The first deal offers 33% extra coffee. The second takes 33% off the regular price. What's the better deal?

The better deal is to not to go to Starbucks in the firstplace. Go to McDonalds. They have great coffee, and a large is only $1.59.

[Gailete]

Or better yet, don't drink coffee in the first place.

I agree though that many are hopeless in math. I went to a yard sale once where a grandma was running a sale with her grandaughter's help to earn funds for her to go to college. I found a lot of goodies there and so while there we started talking to the girl, I asked her what her major was going to be. She wanted to be a math teacher. Then it came time to count the cost of all the stuff we were buying. This girl that wanted to be a math teacher, had problems adding up the prices and had to do it multiple times before she got it right. How can one teach if they don't even know their own specialty?

[elessar78]

it'd be hilarious if he listed only 10 or 12 ways.

[rob62521]

Since we love 9's so much, maybe the author should have cut it down to nine ways...

Seriously, it is scary to see how we are duped to make purchases. A friend of ours went to a store and bought tools because he could get other tools free with purchase. This person doesn't even do home repair...he hires it out!

[JoeP]

IMHO, if you're on a budget, then the lower price is almost always the better deal. In the coffee example, I don't want the extra 33%.

[kv968]

Or better yet, don't drink coffee in the first place.

I agree though that many are hopeless in math. I went to a yard sale once where a grandma was running a sale with her grandaughter's help to earn funds for her to go to college. I found a lot of goodies there and so while there we started talking to the girl, I asked her what her major was going to be. She wanted to be a math teacher. Then it came time to count the cost of all the stuff we were buying. This girl that wanted to be a math teacher, had problems adding up the prices and had to do it multiple times before she got it right. How can one teach if they don't even know their own specialty?

Not to nit-pick, but there's a difference between "math" and "arithmetics". Mathematics is "the study of relationships among numbers, values, etc..." whereas arithmetics is the "adding, subtracting, etc..." of those numbers. It may seem just a matter of semantics, but they're really not the same.

Here's a good article where the author sums it up quite nicely with:
"Arithmetic is to mathematics as spelling is to writing."

Difference between mathematics and arithmetics

Granted you need one for the other but just because you can do, or are good at, "math" doesn't necessarily mean you're great at arithmetic.

For example, I'm by no means a mathematician and/or a statistician (far from it), but I've taken my share of advanced math classes and can understand and work through a fair amount of concepts. However, there are times when something as simple as figuring out a tip and splitting a dinner bill comes along and all my friends just hand me the bill and say, "Here, you're good at 'math', you figure it out." At which point I usually have to sit back and figure it out without spitting out the answer right away while they wonder what's wrong. On the other I know people, most likely sitting at the same table, who don't even know what a variable is and they could do that calculation in a split second. And in that case I usually just hand it off to them

Again, I don't mean to be picky and I'm quite certain that sadly many people probably don't do particularly well in either math or arithmetics, but regardless there is a difference.

[Gailete]

No problem with being picky about math and arithmetic, but I do believe at least in part the original poster was talking about the 'arithmetic' skills to figure which is the better bargain. As the girl I mentioned before wanted to be teaching elementary 'math' I think she herself was talking about arithmetic also.

My brother with two masters degrees in true math, has always said that he can't teach it because it comes too easy for him. My youngest son, who is autistic and has enough bumps in the road, could also look at arithmetic/math problems and see and know the answers. He got downgraded in school because he didn't show his work--how he came to the answer. How does a partially savant autistic kid explain how he knows something? Rather frustrated boy and mom that he could have the right answers but not get a perfect score!

Yesterday I went into Burger King for a quick treat. Saw my MIL and so joined her and we discussed the prices we had paid for what we got. I had asked for a senior drink and they gave me a smaller cup and charged me 75 cents. She had asked for a small drink and had a bigger cup and was charged $1.50. Both had free refills. Who had the better deal? Then for fries I had ordered samll. You would think asking for small you would get the smallest size available. Nope, for that you have to ask for the value fries that are $1.10 instead of the $1.75 small ones. So not only are our arithmetic abilities constantly being challenged just about anytime you walk into a store or restaurant, the restaurant doesn't help by having the order taker clarify do you want small or the value size? nope they just ring up what you ask for. You have to be able to read that huge board and make snap decisions because they try not to let you stand and figure what is the best deal for you. We have to take the power into our own hands and step back and wait until we have figured out what we really want to order or purchase.

[disneysteve]

Then for fries I had ordered samll. You would think asking for small you would get the smallest size available. Nope, for that you have to ask for the value fries that are $1.10 instead of the $1.75 small ones.

Then there is always my favorite. Walk into a restaurant, usually a casual counter-service type of place, and ask for a small Coke. The clerk replies, "We only have 2 sizes - medium and large."

Really?

[kv968]

No problem with being picky about math and arithmetic, but I do believe at least in part the original poster was talking about the 'arithmetic' skills to figure which is the better bargain. As the girl I mentioned before wanted to be teaching elementary 'math' I think she herself was talking about arithmetic also.

My brother with two masters degrees in true math, has always said that he can't teach it because it comes too easy for him. My youngest son, who is autistic and has enough bumps in the road, could also look at arithmetic/math problems and see and know the answers. He got downgraded in school because he didn't show his work--how he came to the answer. How does a partially savant autistic kid explain how he knows something? Rather frustrated boy and mom that he could have the right answers but not get a perfect score!

Yesterday I went into Burger King for a quick treat. Saw my MIL and so joined her and we discussed the prices we had paid for what we got. I had asked for a senior drink and they gave me a smaller cup and charged me 75 cents. She had asked for a small drink and had a bigger cup and was charged $1.50. Both had free refills. Who had the better deal? Then for fries I had ordered samll. You would think asking for small you would get the smallest size available. Nope, for that you have to ask for the value fries that are $1.10 instead of the $1.75 small ones. So not only are our arithmetic abilities constantly being challenged just about anytime you walk into a store or restaurant, the restaurant doesn't help by having the order taker clarify do you want small or the value size? nope they just ring up what you ask for. You have to be able to read that huge board and make snap decisions because they try not to let you stand and figure what is the best deal for you. We have to take the power into our own hands and step back and wait until we have figured out what we really want to order or purchase.

I'm know the article, and I assumed the girl you mentioned, were talking about the "arithmetic" aspect of it all but I just had to make the distinction.

And as far as you Burger King example, it's tricky sometimes and you have to keep on your toes. I know when I go shopping I'm constantly trying to figure out which is a better deal if say a smaller size is on sale compared to a larger one that isn't and things like that. I know it's pretty much simple "arithmetic" but sometimes my brain just freezes. I should just use the calculator on the phone and be done with it

[disneysteve]

I know when I go shopping I'm constantly trying to figure out which is a better deal if say a smaller size is on sale compared to a larger one that isn't and things like that. I know it's pretty much simple "arithmetic" but sometimes my brain just freezes. I should just use the calculator on the phone and be done with it

This is where the unit pricing labels often save you. If size A is $1.49/100 and size B is $1.53/100, you've got your answer. However, the marketing folks have attacked this, too. Sometimes two different brands of a product will give unit pricing using a different base unit making comparisons difficult or impossible. For example, Brand A is $1.49/pint and Brand B is $1.73/pound. Which is the better deal? I have no idea, which is exactly what they want to happen. They're trying their best to trip up the educated consumer.

[kv968]

This is where the unit pricing labels often save you. If size A is $1.49/100 and size B is $1.53/100, you've got your answer. However, the marketing folks have attacked this, too. Sometimes two different brands of a product will give unit pricing using a different base unit making comparisons difficult or impossible. For example, Brand A is $1.49/pint and Brand B is $1.73/pound. Which is the better deal? I have no idea, which is exactly what they want to happen. They're trying their best to trip up the educated consumer.

I use the unit pricing when I can but when things are on sale they don't reflect that. They usually just put up a sign with the sale price of the item on it but don't change the unit pricing so you're only left with what it originally sold at unit-wise.

Ah, it keeps my "math" skills up

[disneysteve]

I use the unit pricing when I can but when things are on sale they don't reflect that.

You should complain to the manager when they do that. Our supermarket (Wegman's) has sale tags that include unit pricing.

[moneybags]

I confused the cashier at Walmart the other day. I wanted to price match my limes at 4 for $1.00. After I told her this, she asked "how much for each one?".