No one hates freebies. However, companies who give out comic books, Slurpees, donuts, ice cream, and pancakes are definitely doing the right advertising stunt. Though freebies look like your giving out something to gain back something, when handled properly, it can be the best way to boost your sales.
However, the power of freebies goes much deeper than that. When these consumers get something out of nothing, they tend to respond surprisingly – most of the time, companies who gave out free items are well-rewarded with the consumer’s generosity. Here are other exciting ways how consumers get affected by these freebies:
Consumers feel obligated to purchase more
According to a study by behavioral science professor Randy Garner, consumers tend to return a favor “can occur despite the fact that we may never have requested the favor in the first place.” For instance, a Free Comic Book Day actually cost more money than lose something out of it. The reason behind it is the reciprocity principle.
Another example is 7-Eleven’s Free Slurpee Day. Customers are given a small ounce of Slurpee for FREE. The scenario should be people goes in, get their Slurpee and get out. But actually, what really happens is that people who tried the sample size will want to buy a bigger one, giving more revenue to the business.
Consumers tend to miscalculate things
In an experiment by the Journal of Marketing Study, participants were allowed to choose discounted items of either 33% more coffee against 33% off the price. Participants mostly choose the 33% more coffee when in fact, the best deal goes to the 33% off the actual price.
Once consumers miscalculate things accordingly, they were left into deciding out of their emotions. They tend to perceive that getting something or an extra is much better discounts in price.
Consumers tend to buy something when mystery is involved
Still, according to the Journal of Marketing study, it was found out that consumers tend to buy an item with a freebie that’s not revealed. They consider it a cool or fun stuff.
When emotions are involved, retailers can give away smaller freebies for as long as a surprise is involved. “Uncertainty may have a stronger impact than simply offering more to consumers. Indeed, when offering more decreases uncertainty, the strategy may backfire because consumers may perceive the promotion to be less fun,” says the researcher from the University of Miami.
Consumers talk more of the product if there’s a freebie
Social media has replaced the traditional way of spreading the news “word of mouth”, into a much-revolutionized way of advertising but also as much cheaper. Companies believe that the greatest strategy that they could do cope with their competitors is to provide freebies. Consumers who have received freebies related to a product will most likely talk about it and spread the news through social media.
There’s nothing wrong if you decide to give freebies to your customers to gain their loyalty or thank them for patronizing your products. You will definitely reap the price of your hard work in time.