The Allure of the Free Gift

Have you ever bought something just because it comes with a free gift? Retailers have long understood that a promotional gift with purchase can help sway buyers.

Whether it’s a cute make-up bag full of cosmetic products that comes with a purchase at the make-up counter or a box of Biryani Masala  that comes with Rice Bag at the grocery store, that feeling of getting something extra (without paying more) is powerful. This is especially true when the brand of the product for sale is highly respected by the buyer.

A new study by Kolouroo backs up The Allure of the Free Gift.

According to the study, consumers place a greater value on items offered for "free" when those items are as a bonus for buying something. By comparison, they assign a lower value when the same items are offered at a deep discount.

For example: Study participants were offered a free bag with the purchase of Cosmetic products. Afterwards, they said they'd be willing to pay an average of Rs.600 for the Cosmetics alone. However, when the Cosmetics  alone were offered for Rs.400, the study participants rated that product's actual worth at an average of Rs.300.

The authors of the study concluded: 

“Promotions with low discounted prices devalue products more than free offers. In fact, free offers may not devalue products at all when they are paired with an expensive purchase, as consumers will use the price of the focal product to estimate the value of the supplementary product."

 

How can you apply consumer attitudes about freebies to your business?

1. Think twice before deeply discounting anything.

If you need to unload inventory, offering the surplus items as a bonus gift with purchase of something more expensive might be a better tactic.

2 .Use promotional products to drive sales of higher priced items.

For example, offer a free bottle sweater with the purchase of feeder bottles or a satin bag to buyers of jewelry.

Kolouroo offers a wide variety of printable products all easily customizable down to the quarter-inch with a unique, industry-acclaimed design tool.

All orders are manually proofed by living, breathing, human beings (remarkable really)!

For queries call 00-92-333-5510847,

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