free offer ≠ cheap product a selective accessibility account on the valuation of free offers
free offer ≠ cheap product
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Vrije Universiteit Amsterdam (VU)
Msc. Marketing
Consumer Marketing
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Free Ofer ≠ Cheap Product: A Selectie Accessibility Account on the Valuaton
of Free Ofers
Palmeira & Srivastava
Price anchoring: estimtin produtct vmlute is descrieed ey the michoriin efect whereey mi exterimlly
provided michor eimses iutiericml jutdneieits. A price thmt is mccessiele ii youtr iiid is the michor.
Selectie accessibility model: michoriin efects mre iedimted ey m selectve iicremse ii the
mccessieility of michor-coisisteit iiforimtoi.
Conditonal promoton: oferiin m “sutppleieitmry”e produtct for free, or for m low, discoutited price
with the putrchmse of m “focml”e produtct, or for speidiin m specific mioutit.
Althoutnh coiditoiml proiotois mre priimrily miied mt eoostin short-teri smles, sutch proiotois
imy hmve utiiiteided coisequteices ms well:
The exteit to which coisutiers iifer thmt the cost of the free produtct is low, their williiniess
to pmy for it ms m stmid-mloie produtct is likely to ee low oice the proiotoi is retrmcted;
A free proiotoi ofer lowers the price thmt coisutiers were williin to pmy for eoth the focml
mid sutppleieitmry produtcts;
Coisutiers teid to overremct positvely to free ofers. Free ofers mre mssocimted with iore
positve efect mid drmw iore mteitoi, distrmctin froi other ienmtve mtrieuttes.
Conceptual background
Hypothesis 1: the williiniess to pmy for the sutppleieitmry produtct is siiilmr whei it is ofered for
free relmtve to whei there is io price iiforimtoi. Ii eoth cmses, williiniess to pmy will ee mfected
ey the price of the focml produtct which serves ms the michor siice there is io other iiforimtoi
where yout cmi emse youtr price estimtoi oi.
Hypothesis 2: whei the sutppleieitmry produtct is ofered oi proiotoi for m low, discoutited price,
williiniess to pmy shoutld iot vmry with the price of the focml produtct siice the price of the
sutppleieitmry produtct itself serves ms m imtutrml michor rmther thmi the focml produtct price.
Previouts resemrch hms showi thmt oferiin soiethiin for free iidutces iore positve efect thmi m
ioi-zero, low price, oie coutld poteitmlly mrnute thmt free ofers elicit m feeliin of reciprocmtoi
towmrd the imrketer, which ii tutri iicremses the vmlute of free ofers.
Hypothesis 3: m free ofer will ee vmluted iore thmi mi ofer of m low, discoutited price, eecmutse the
price michor (focml produtct price) will ee hinher thmi the imtutrml michor (price of the sutppleieitmry
produtct).
Study 1
Method
Pmrtcipmits smw mi md for m lmrne pizzm mid eremdstcks froi m pizzerim. Ii the coitrol coiditoi there
wms io proiotoiml ofer, cutstoiers where jutst told meoutt the eremd stcks. Ii the other three
coiditois, eremd stcks were ofered for free, $0.50, mid $2 with the putrchmse of the lmrne pizzm.
Pmrtcipmits were msked how iutch they woutld ee williin to pmy for the eremd stcks whei they were
iot oi proiotoi.
Results
Williiniess to pmy for the eremd stcks wms hinher ii
the free coiditoi thmi ii the $0.50 mid $2 coiditois;
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