The ‘buy one, get one
free’ offers you see in supermarkets, shops, fast food chains… has now become a
common strategy for promoting certain products.
As a student, you are often tempted by these offers as they permit you
to save some money. Looking back at my first year at university, I remember
always having Domino’s voucher on our kitchen table and myself and my friends
would always order the ‘buy one get one free’ deal as it would be a lot cheaper
and more appealing.
Das (1992) investigated how consumers are affected by economical
deals. Her results show that they do affect consumer evaluations as they
stimulate the demand by reducing the price that a buyer has to pay by offering
price promotions or offering more of the product at the same price.
Smith and Sinha (1973) conducted a study on consumers store preference
when presented with promotional deals. They tested three different deal frames: '50% off', ‘buy one get one free’ and ‘buy two, get 50% off’.
Results of the study show that the nature of framing does affect
consumer deal preference even though the deal may be equivalent on a unit cost
basis.
Das, P. R. (1992). Semantic cues and buyer evaluation of promotion
communication, in Leone, R. P. and Kumar, V. (Eds), Enhancing knowledge development in marketing. American Marketing
Association: Chicago, IL.
Smith, M. F., & Sinha, I. (1973). The impact of price and extra
product promotions on store preference. International
journal of retail and distribution management, 28, 83-92.
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