T his study used perceived performance risk, promotion type, and size, and analyzed customers' perceptions of value and buy intentions through a cross-sectional experiment (Lowe, 2010). The experimental method answers the call in the literature for more experimental research in pricing and sales promotion studies and offers more internal validity. This includes exploring the psychology of free vs paid, as well as the freebies psychology, a critical aspect that influences consumer behavior in sales promotions. Numerous studies have looked at how consumers react to the layout of a promotional offer (e.g., discount size, absolute versus relative amounts, etc.) Some research papers, however, have compared and contrasted how consumers respond to promotional offers that are both monetary and nonmonetary. This study contributes by combining literature on perceived risk and literature on sales promotions to offer a more comprehensive theory of how consumers react to various promotional offers. It is the first study to examine the moderating role of perceived performance risk on consumer perceptions of different promotional frames, particularly focusing on the psychology of free vs paid offers. Keywords include Discounts, perceived performance risk, framing, and more free product marketing (Lowe,2010). According to research, using branded products to advertise a brand significantly impacts consumer behavior. A lot of customers admit that promotional products serve as their sole constant brand reminders and are the primary reason they continue to be loyal to a particular company. Customers asserting that they would not hesitate to switch products merely to acquire a promotional item have been used by marketers to increase sales to capitalize on this new trend in marketing. (Moser, 2016) This trend also reflects the psychology of free vs paid, where the perceived value of free items can heavily influence consumer loyalty. Brand recognition is the main goal of promotional items. However, marketing executives havediscovered a method to leverage these products as a call to action, so this is not the soleapplication for them. This naturally follows that the intended aim, which might be anything fromboosting sales revenue to expanding brand exposure and recognition, is what drives how theitems are used (Moser, 2016). Whether you are a corporate entity or a small business client, Impact Marketing develops practical solutions for more effective marketing tactics, including understanding the freebies psychology, which plays a crucial role in consumer engagement and brand loyalty. The level of competition among competing business interests makes marketing solutions more difficult. Smaller and less well-known brands are finding it harder and harder to remain relevant in the marketplace, especially when they are unable to compete with the more well-known names. Impact Marketing & Design can help you create promotional plans for your goods (Moser, 2016). The findings show that perceived risk has a distinct and potent moderating effect on customer value perceptions and preferences for additional free product promotions and price reductions. This underscores the importance of understanding freebies psychology in consumer behavior, particularly in how customers perceive and react to promotions. In particular, consumers tend to place more value on additional free product promotions than on discounts for goods with little performance risk, highlighting a key aspect of freebies psychology. The opposite is true for products with significant performance risk; in these cases, buyers place more value on price reductions than on further free product promotions. These results have ramifications for a wide range of product categories, including novel new products, goods with greater absolute amounts of advertising, and other fields where the perceived risk is expected to fluctuate (Mela et al., 1997). These findings support and add to the current literature on sales promotions by demonstrating that the theory is valid for products with low-performance risk but needs to be expanded for products with high-performance risk. Because of this, managers and retailers should carefully consider how to structure promotions based on how much risk consumers perceive (Mela et al., 1997). The results here emphasize and give a fuller picture of the effects of various promotional forms. Both executives and scholars have recently begun to pay more attention to the topic of salespromotion. The realization of the rising significance of sales promotion activities in marketingstrategy is the cause of this expanding interest. It was projected that $60 billion was spent onconsumer promotions in 1982, whether directly through coupons, rebates, sweepstakes, andthe like or indirectly through payments made to dealers or merchants who then used thosefunds to display or advertise products at a discount. Effective techniques for sales promotionand other components of the communications mix that are closely related require anunderstanding of how customers react to promotions (Gardner & Strang, 1984). Consumer response to promotions is a topic that is being studied by an increasing number ofresearchers, but results have been limited and inconsistent due to the use of variousmethodology, focuses, and scientific paradigms By relying on recent research in the study ofconsumer scripts and consumer information processing, this paper aims to propose a modelthat incorporates existing research and broadens our understanding of consumer response topromotions. A review of some of the theoretical paradigms that have been used in this field ofstudy will come before we discuss the model (Gardner & Strang, 1984). The findings supportthe hypothesis that when advertising and promotions grow and prices decrease, customersbecome more price and promotion sensitive (Mela et al., 1997). At trade exhibitions, conferences, or conventions, about six out of ten customers received promotional items from a business. This aligns with the psychology of free vs paid, as consumers were well aware of the advertising’s goals, which included promoting a particular brand, company, or cause (55 percent). Additionally, promotional items are distributed to thank customers for their business (16%) or to encourage purchases directly (10 percent). Before getting promotional items, the majority of consumers (88%) were already familiar with the marketer. About half of the consumers had bought from the marketer before obtaining the promotional items (55 percent). 85 percent of those who received the promotional items went on to do business with the advertiser. Additionally, advertisers were successful in attracting new customers who had never done business with them before (11 percent), demonstrating the psychology of free vs paid in consumer behavior. Promotional items have a favorable influence on attitudes and behavior, which is a critical aspect of the psychology of free vs paid. Customer acquisition and retention are strongly correlated with the utilization of promotional products. Advertisers should strategically employ this medium to foster loyalty, raise awareness, and encourage new trials. To be able to predict which products would be more alluring, practical, and simple to incorporate into consumers' daily life, advertisers and distributors of promotional products should keep an eye on cultural and socioeconomic trends (The Influence of promotional products on consumer behavior, relevant insights, November 12). Seven out of ten consumers remembered getting at least one promotional item in the previous year, a phenomenon closely tied to the freebies psychology. In earlier investigations, a related result was seen. Seventy percent of respondents who remembered receiving promotional merchandise said they received two or more. The likelihood of recalling the marketer and message behind the first recalled promotional item is very high, influenced by the freebies psychology. While 88 percent of people could name the advertiser from a promotional product they had received in the previous 12 months, only 71 percent could name the advertisers from a newspaper or magazine they had read a week earlier, demonstrating the effectiveness of promotional products in boosting brand recognition (The Influence of promotional products on consumer behavior, relevant insights, November 12). The most frequently returned promotional goods advertisers include businesses in the financial services, retail, fashion, and electronics industries. The following categories of promotional products are frequently recalled: Wearable technology (41%): Comprising shirts (22%), caps/headwear (11%), outerwear (6%), and other wearables (7%). Drinkware (35%), and writing instruments (19%) are also among the categories that benefit from the understanding of freebies psychology in driving recall (The Influence of promotional products on consumer behavior, relevant insights, November 12). Promotional products are a great way to develop and maintain brand awareness since theyhave a wide audience and the potential to stick in consumers' minds. Unaided brand recall is asign of brand power because it depends on the capacity, organization, and accessibility ofmemories. the interference of information from other products, the Date of most recentexposure, The quantity and nature of extraneous retrieval cues, and Promotional items can beutilized to reduce exposure time gaps and offer outside cues to aid in brand memory. They mustbe offered frequently, clearly relate to the brand, and be pertinent to the customer (The Influence of promotional products on consumer behavior, relevant insights, November 12). Research hasshown that those who have had their anxiety high due to gift-giving may lead to a negativeimpact on the relationship. +1 (888) 994-4438 Promotional goods are frequently seen and used by consumers, embodying the psychology of free vs paid in marketing strategies. Advertisers can expand their possibilities for building and sustaining brand recognition by offering practical promotional items that can be naturally incorporated into consumers' lives (rather than only serving as references for contact information). To make promotional products more relevant to people outside the target audience and to make it easier for people to share them with others, thereby expanding their reach, they should be seen as "gifts for family and friends". Jesse Siambi The psychology behind freebies lies in the human tendency to feel appreciated and valued when receiving something for free. It creates a sense of goodwill and often triggers the reciprocity principle, where recipients feel inclined to return the favor, possibly through loyalty, purchases, or positive word-of-mouth. The psychology behind giveaways taps into the excitement of receiving something free, creating a positive association with the brand. It leverages the reciprocity principle, where recipients feel a subconscious urge to return the favor, often through increased engagement or purchases. Giveaways also stimulate social sharing, broadening brand exposure. "Free" is attractive because it offers a risk-free opportunity to try something new without financial commitment. It appeals to our desire for a good deal and triggers a positive emotional response. The allure of getting something for nothing is a powerful motivator, often leading to increased interest and engagement. Freebies are important as they create a positive first impression and build goodwill towards a brand. They encourage trial, increase brand awareness, and often lead to future sales through the principle of reciprocity. Freebies also enhance customer experience and can turn casual browsers into loyal customers. Price significantly impacts consumer buying behavior. It influences perceived value; higher prices may suggest better quality, while lower prices can attract budget-conscious shoppers. Consumers often weigh price against need, quality, and brand reputation. Pricing strategies, like discounts or premium pricing, can also sway purchase decisions, aligning with various consumer preferences. Free freebies" are complimentary items or services given without cost to the recipient. They serve as a marketing tool, creating goodwill and increasing brand awareness. These no-charge giveaways are often used to attract new customers, reward loyalty, and provide a taste of what a brand or product offers. Originality/Value
Impact Marketing and Consumer Behavior
How Promotional Products Are Used?
Where Impact Marketing Comes In
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Research implications/ Findings
Importance Of Sales Promotions
Consumer Response
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Relationship with Advertiser & Business Impact
Main Takeaways
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Recall Of Promotional Products
Examples Of Recall Of Promotional Products
Key Takeovers
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Conclusion
Psychology Blogger,
The Shared Secrets Lab,
GiftAFeeling Inc. Read The Official Research Paper On - The Psychology of Free vs Paid: Understanding Consumer Behavior in Promotions
Frequently Asked Questions (FAQs)
1. What is the psychology behind freebies?
2. What is the psychology behind giveaways?
3. Why is free so attractive?
4. Why is freebies important?
5. How does price affect consumer buying behavior?
6. What is free freebies?
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FAQs
Psychology of Free vs Paid [Freebies Psychology] - GiftAFeeling? ›
The psychology behind freebies lies in the human tendency to feel appreciated and valued when receiving something for free. It creates a sense of goodwill and often triggers the reciprocity principle, where recipients feel inclined to return the favor, possibly through loyalty, purchases, or positive word-of-mouth.
What is the psychology of giving something for free? ›The reciprocity principle says that our minds tend to place a higher value on items that are offered for free compared to other promotional discounts. When someone does something for us, we naturally want to return the favor.
Why are people attracted to free giveaways? ›For one, the product received as a free sample is something your customers don't pay for. It doesn't cost them a single penny, and the very thought of getting something for no cost at all makes them more willing to spend money to get the free gift, just because they get more than they actually paid for.
What is the psychology behind free? ›Research states that these feelings are associated with increased levels of oxytocin, which is associated with lower levels of stress and may encourage people to keep seeking this feeling. The joy associated with getting something for free and not paying for something that one would have bought anyway, is unparalleled.
What is the psychology of giveaways? ›As humans, our brains are wired to assign a disproportionately large value to items that come at zero financial cost. The positive charge that's experienced when offered a freebie feels like a rare gift to the average consumer.
What is the psychology behind gift giving? ›There is a psychological term called "vicarious reward" that suggests that when we witness something positive happening to another person, we vicariously feel in that person's pleasure, too. We can capitalize on this phenomenon by making ourselves happy by doing good deeds for others, including by giving gifts.
What are the arguments against free will in psychology? ›Belief in free will, it has been argued, may contribute to the stigma attached to mental illness by obscuring the role of underlying biological and environmental causes.
What is the psychology of free items? ›The psychology behind freebies lies in the human tendency to feel appreciated and valued when receiving something for free. It creates a sense of goodwill and often triggers the reciprocity principle, where recipients feel inclined to return the favor, possibly through loyalty, purchases, or positive word-of-mouth.
Why do people feel happy when they receive free gifts? ›Gifts, regardless of size, create a sense of goodwill and value, fostering a positive connection between the giver and receiver. They evoke a sense of being thought of and cared for, triggering feelings of joy and gratitude, which naturally uplift one's mood.
Do free giveaways really work? ›The facts speak for themselves: 83 percent of people are more likely to do business with a brand that gave them a free promotional product. If they need your products or services in the future, you can bet they'll be back.
Why don't people value free stuff? ›
Because our capitalistic culture only values things that everyone else wants and is willing to pay whatever it takes to get it. If it's free, that must mean no one else wants it so no one will be caught dead taking it. Unfortunately, this attitude carries over to other non-material things—like love and contentment.
Is free will an illusion in psychology? ›The first insight that reveals free will as an illusion, according to Harris, is that our thoughts and intentions emerge from what he calls “prior causes.” This means that, even though you think that you're in control of your thoughts and actions—and you think that there is a “you” involved in these processes—it's ...
What is the free will approach in psychology? ›Free will is the idea that we can play an active role and have choice in how we behave. The assumption is that individuals are free to choose their behaviour and are self-determined. For example, people can make a free choice as to whether to commit a crime or not.
What is the theory of gift giving? ›Gift theory refers to the concept of exchange and hospitality in human relations. It is based on the idea of giving and receiving gifts as a way to establish and maintain social connections. Marcel Mauss's theory of gift is often used as a framework to understand these practices.
Why are people attracted to giveaways? ›Even if the odds of winning are low, it's human nature to feel hopeful about the possibility of getting something for free. As a marketing tool, giveaways allow you to leverage people's attraction to prizes to drive engagement.
What is the psychology behind over giving? ›Over-giving is often a sign of codependency.
So we give too much in order to receive praise and attention that then gives us a feeling of esteem.
The psychology behind freebies lies in the human tendency to feel appreciated and valued when receiving something for free. It creates a sense of goodwill and often triggers the reciprocity principle, where recipients feel inclined to return the favor, possibly through loyalty, purchases, or positive word-of-mouth.
What is it called when someone gives you something for free? ›A gift or handout, something that doesn't cost money, is a freebie. Guests at fancy award shows usually get bags full of expensive freebies. The informal word freebie means "something given free of charge," and it's an especially good term for marketing or promotional items that are handed out as advertising.
What is the word for giving someone something for free? ›something given to someone without expectation of a return I got this CD as a freebie for buying a receiver. gift. donation. bonus. giveaway.
