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..
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Consumer Research.
Volume (Year): 36 (2009)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JCR/
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.