The Effects of Free Sample Promotions on Incremental Brand Sales
The authors present a model of free sample effects and evidence from two field experiments on free samples. The model incorporates three potential effects of free samples on sales: (1) an acceleration effect, whereby consumers begin repeat purchasing of the sampled brand earlier than they otherwise would; (2) a cannibalization effect, which reduces the number of paid trial purchases of the brand; and (3) an expansion effect, which induces purchasing by consumers who would not consider buying the brand without a free sample. The empirical findings suggest that, unlike other consumer promotions such as coupons, free samples can produce measurable long-term effects on sales that can be observed as much as 12 months after the promotion. The data also show that the effectiveness of free sample promotions can vary widely, even between brands in the same product category. Application of the model to the data from the two experiments reveals that the magnitude of acceleration, cannibalization, and expansion effects varies substantially across the two free sample promotions. These and other findings suggest that the model can be a useful tool for obtaining insights into the nature of free sample promotions.
Volume (Year): 23 (2004)
Issue (Month): 3 (November)
|Contact details of provider:|| Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA|
Web page: http://www.informs.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Amir Heiman & Bruce McWilliams & Zhihua Shen & David Zilberman, 2001. "Learning and Forgetting: Modeling Optimal Product Sampling Over Time," Management Science, INFORMS, vol. 47(4), pages 532-546, April.
- Peter M. Guadagni & John D. C. Little, 1983. "A Logit Model of Brand Choice Calibrated on Scanner Data," Marketing Science, INFORMS, vol. 2(3), pages 203-238.
- Chakravarthi Narasimhan, 1984. "A Price Discrimination Theory of Coupons," Marketing Science, INFORMS, vol. 3(2), pages 128-147.
- J. Miguel Villas-Boas, 2004. "Consumer Learning, Brand Loyalty, and Competition," Marketing Science, INFORMS, vol. 23(1), pages 134-145, December.
- P. B. Seetharaman, 2004. "Modeling Multiple Sources of State Dependence in Random Utility Models: A Distributed Lag Approach," Marketing Science, INFORMS, vol. 23(2), pages 263-271, April.
When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:23:y:2004:i:3:p:345-363. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.