Promotional Bundles and Consumers' Price Judgments: When the Best Things in Life Are Not Free
AbstractA series of experiments examined the amount that consumers were willing to pay for products bundled together in a promotion. Describing one of the disparate products in the bundle as "free" decreased the price consumers were willing to pay for each product when sold individually. However, a "freebie" offer did not influence the overall price for the bundle of disparate products, a finding robust across two different settings and populations. The differential effect of freebies is explained by varying judgment difficulty, with the price being easier to arrive at for just a single product than for the combination. Consistent with this explanation, factors that influence judgment difficulty (the salience of the company's motive for offering the freebie and time pressure to make a judgment) moderated the effects of a free offer on the amount consumers were willing to pay. (c) 2009 by JOURNAL OF CONSUMER RESEARCH, Inc..
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Consumer Research.
Volume (Year): 36 (2009)
Issue (Month): 4 (December)
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Web page: http://www.journals.uchicago.edu/JCR/
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