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Can Giving Freebies Hurt Your Business?
Have you experienced being offered a free gift once you buy a particular product? This is a popular marketing strategy employed by businesses to entice people to buy a particular item in exchange of a freebie.
For instance you can get a free gallon of fruit juice if you buy a big box of cereals. This is certainly a good offer to most people, especially to the budget conscious, so there’s little reason why most customers won’t buy the items being offered.
But for enterprises offering this kind of promotion, this could be a bit disadvantageous particularly to the item being offered as a freebie. What most business owners do not realize is that the freebie being offered appreciates in value in the eyes of the customers.
In a recent study, it has been proven that the freebie being offered with a purchase gets a negative perception among many consumers. Clients often perceive these free items as a run of the mill product which businesses throw in just to enable another product to get substantial sales.
The idea is that the business would not throw in the said freebie to the offer if it was of a good value. Thus customers think that the freebie is offered just because of it is of an inferior quality.
Businesses should be careful in choosing the item they would offered with a purchase. The research even emphasized that the item being offered does not only have a negative impression among customers. Even the brand that the item carries is affected. For instance, Brand A gets a negative impression if its product line is given away for free with a purchase.
Don’t give products you value as your freebies with purchase. It can have a tremendous effect on the product in the long run.
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