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Article
Publication date: 5 October 2015

Dong Hong Zhu, Ya Ping Chang and An Chang

The purpose of this paper is to understand how free gifts with purchase influence the purchase satisfaction of online consumers, and compares the difference between the…

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2773

Abstract

Purpose

The purpose of this paper is to understand how free gifts with purchase influence the purchase satisfaction of online consumers, and compares the difference between the contexts, which the consumers are certain and uncertain with the free gifts before purchase.

Design/methodology/approach

This study developed a theoretical model to examine how free gifts with purchase influence the purchase satisfaction of online consumers. The moderating effect of uncertainty was also examined. Using a survey questionnaire, empirical data were collected from 288 Taobao users. The partial least squares technique was used to test the proposed research model.

Findings

Perceived usefulness, perceived quality, perceived cost, and perceived ingenuity are antecedents of happiness toward a free gift with purchase. Happiness has a positive effect on the purchase satisfaction of online consumers. Uncertainty is an important moderator.

Research limitations/implications

The findings extend the current state of knowledge about the relationship between online purchase with free gifts and purchase satisfaction, as well as reveal the psychological mechanism of the effects of online purchase with free gifts on purchase satisfaction.

Practical implications

The findings of this study provide e-retailers with a deep understanding of how free gifts with purchase affect the purchase satisfaction of online consumers in different presentation approaches of the gifts.

Originality/value

Knowledge about the role of free gifts with purchase on the purchase satisfaction of online consumers is scarce. This study provides empirical evidence about the effect of free gifts with purchase on the purchase satisfaction of online consumer in different presentation approaches of the gifts.

Details

Internet Research, vol. 25 no. 5
Type: Research Article
ISSN: 1066-2243

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Article
Publication date: 1 March 2005

Priya Raghubir

The underlying thesis of this paper is that consumers will infer that the costs of production of a product that is offered free are low, and this will reduce the price…

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3720

Abstract

Purpose

The underlying thesis of this paper is that consumers will infer that the costs of production of a product that is offered free are low, and this will reduce the price they are willing to pay for the product when it is a stand‐alone offering.

Design/methodology/approach

Two laboratory experiments examine how consumers respond to products that have been offered as “free gifts with purchase” of another product.

Findings

Study 1 shows, that when an economically identical offer is framed as a joint bundle (Buy X and Y for $), compared with when it is framed as a “Buy one, get one free” offer, consumers are willing to pay less for the product offered “free.” Study 2 shows that, when a product is given away “free,” then consumers are willing to pay less for it as a stand‐alone product, especially when the original promotional offer does not include the price of the free gift.

Research limitations/implications

Results imply that the design and communication of consumer promotions affect the price consumers are willing to pay for a product.

Practical implications

Managerial implications for the design and communication of consumer promotions are discussed.

Originality/value

The paper adds to the growing body of research that shows that a price promotion has more than just an economic effect; it also has an informational effect through which it affects consumer responses.

Details

Journal of Product & Brand Management, vol. 14 no. 2
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 16 April 2019

Yookyung Park and Youjae Yi

The present study aims to demonstrate that providing a free gift upon purchase may induce consumers to devaluate the main product promoted with the offer. The mediating…

Abstract

Purpose

The present study aims to demonstrate that providing a free gift upon purchase may induce consumers to devaluate the main product promoted with the offer. The mediating role of persuasion knowledge and the moderating role of consumer shopping orientation are also examined.

Design/methodology/approach

Three studies with between-subject designs are conducted to test the influence of product–gift fit on evaluations of the promoted product.

Findings

When a low-fit gift (vs a high-fit gift) is provided as a promotional offer, consumers’ evaluations of the promoted product are undermined. These negative effects are driven by consumers’ activation of persuasion knowledge on the company’s ulterior motive to entice consumers to make a purchase. Such devaluation effects occur especially for consumers with a task-focused shopping orientation, whereas they are mitigated for consumers with an experiential shopping orientation.

Research limitations/implications

This research extends the conceptualization of product–gift fit and challenges the common claim that free gift promotions maintain the value of the promoted product. By instigating a mechanism underlying consumers’ objections toward low-fit gifts, this research implies that consumers may think of an implicit cost to a free offer based on their knowledge of companies’ tactics.

Practical implications

Marketers should be aware of the fact that a certain gift may come at a cost for companies and bring about negative inferences regarding the main product. They need not only to select a gift that drives sales but also to be cautious about the gift’s influence on perceptions of the main product. Marketers should ensure that the gift has a good fit with the product while trying to discover a unique gift for consumers. Marketers should also provide an offer that matches shopping orientation of the target consumers.

Originality/value

This research reveals counterevidence to prior research claiming that free gift promotion does not hurt the perceived value of the promoted product. It enhances a theoretical understanding of devaluation effects and provides useful implications for designing and targeting free gift promotion.

Details

European Journal of Marketing, vol. 53 no. 7
Type: Research Article
ISSN: 0309-0566

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Abstract

Details

Philosophy of Management and Sustainability: Rethinking Business Ethics and Social Responsibility in Sustainable Development
Type: Book
ISBN: 978-1-78973-453-9

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Article
Publication date: 8 May 2017

Salome Drechsler, Peter S.H. Leeflang, Tammo H.A. Bijmolt and Martin Natter

The purpose of this paper is to compare the impact of different multi-unit promotions (MUPs) and a single-unit promotion (SUP) on store-level sales and consumer-level…

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4822

Abstract

Purpose

The purpose of this paper is to compare the impact of different multi-unit promotions (MUPs) and a single-unit promotion (SUP) on store-level sales and consumer-level purchase probability and quantity decision.

Design/methodology/approach

The paper combines two empirical studies. Study 1 applies a hierarchical multiplicative model to store-level sales data for four product categories provided by a large Dutch retail chain. Study 2 presents a laboratory experiment in which the quantity requirements of the two focal MUP frames are manipulated to assess their impact on consumer purchase decisions.

Findings

The paper provides empirical evidence for the superiority of the “X for $Y” above “X + N free”, which confirms the hypotheses based on prospect theory, mental accounting and theory about gift-giving. Quantity requirements of four to five units show the largest effects. In addition, the superiority of the “X for $Y” frame holds for functional product categories, but not for the hedonic categories.

Practical implications

The paper provides managerial insights into the relative effectiveness of alternative MUPs and an SUP and how this promotional effectiveness depends on the type of product category and quantity requirements.

Originality/value

This paper combines actual sales data and experimental data. This “mixed approach” extends existing knowledge by comprehensively evaluating two MUP frames, namely, “X + N free” and “X for $Y” promotions, and an SUP.

Details

European Journal of Marketing, vol. 51 no. 5/6
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 29 March 2013

Isabel Buil, Leslie de Chernatony and Teresa Montaner

The aim of this paper is to shed light on the determinants of consumers' evaluations and purchase intentions of gift promotions. Factors analysed relate to the promoted…

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4351

Abstract

Purpose

The aim of this paper is to shed light on the determinants of consumers' evaluations and purchase intentions of gift promotions. Factors analysed relate to the promoted product, the gift, the relationship between the product and the gift, and consumer traits and perceptions.

Design/methodology/approach

A 2 (product type: utilitarian vs hedonic) × 2 (gift type: utilitarian vs hedonic) × 2 (brand type: high equity vs medium equity) between‐subjects factorial design was undertaken. Structural equation modelling was used to test the hypotheses on a sample of 247 respondents in the UK.

Findings

Gift attractiveness is the most important driver of consumers' overall evaluation of gift promotions, followed by the attitude toward the promoted brand, the perceived fit between the promoted product and the gift, the hedonic nature of the gift, plus value expression and entertainment benefits perceived by consumers. Results also reveal that deal proneness is positively associated with the hedonic benefits of value expression benefit and entertainment benefit. Finally, the overall evaluation of gift promotions with both brand attitudes and deal proneness positively influences consumers' purchase intentions.

Research limitations/implications

To generalise these findings, future research should use a wider sample.

Practical implications

The findings of this study provide guidelines for marketers designing their gift promotional strategies.

Originality/value

The increased popularity of gift promotions necessitates a better understanding of the factors influencing consumers' evaluations. This study addresses the lack of research in this area by simultaneously investigating the effect of different key factors.

Details

European Journal of Marketing, vol. 47 no. 3/4
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 February 1991

Barbara R. Lewis and Graham H. Bingham

Findings are presented from an empirical investigation among theyouth market for financial services. Attention is focused on accountownership and use of services, together…

Abstract

Findings are presented from an empirical investigation among the youth market for financial services. Attention is focused on account ownership and use of services, together with attitudinal data pertaining to banks and building societies and the services they provide; of particular interest is evidence of split banking and bank switching. Overall, the heterogeneity of the youth market with respect to needs, attitudes and behaviour is highlighted, and a number of implications for the marketing strategies of banks and building societies are suggested.

Details

International Journal of Bank Marketing, vol. 9 no. 2
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 18 September 2020

Joëlle Vanhamme, Adam Lindgreen and Michael Beverland

This study aims to explore surprising gifts received and given by close relations to identify the variables involved in creating surprising gifts. The analysis of the…

Abstract

Purpose

This study aims to explore surprising gifts received and given by close relations to identify the variables involved in creating surprising gifts. The analysis of the viewpoints of the giver and the recipient, reflecting their profiles, leads to recommendations for retailers.

Design/methodology/approach

An exploratory, small-scale, open-ended questionnaire (48 respondents) produces 43 (38) accounts of surprising gifts given (received), informed further by in-depth interviews (eight informants, both givers and recipients of surprising gifts).

Findings

This study identifies and elaborates on the variables (why, when, what, where, who and how, and their combinations) that define surprising gift giving, from both giver and recipient perspectives. The findings indicate a paradox: even if givers or recipients prefer a surprising gift, they might give or wish for an unsurprising gift to avoid disappointment.

Research limitations/implications

Further research should confirm the findings using representative samples. Moreover, gender differences in surprising gift giving should be investigated further. Finally, the exact characteristics and properties that make common objects potential candidates for successful surprising gifts should be studied further.

Practical implications

The discussion has relevant implications for manufacturers and retailers. For example, if recipients are surprised, happy and satisfied, they likely exhibit higher brand recall. The recipient’s (happy versus not happy) emotions also have spillover effects on the giver’s. Thus, retailers should provide assistance in the store and advertise their salespeople as experts who can offer advice about selecting appropriate gifts. The exact characteristics and properties that make common objects potential candidates for successful surprising gifts should be studied further.

Originality/value

The systematic account of all six variables, not previously analyzed in the literature, provides rich insights into surprising gift giving. The discussion of the study of givers and recipients supplements these insights.

Details

European Journal of Marketing, vol. 55 no. 2
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 19 April 2011

Teresa Montaner, Leslie de Chernatony and Isabel Buil

The objective of this paper is to better understand the factors that influence consumers' responses toward gift promotions. Specifically, the aim is to analyse four…

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6737

Abstract

Purpose

The objective of this paper is to better understand the factors that influence consumers' responses toward gift promotions. Specifically, the aim is to analyse four variables: the nature of the promoted product, the fit between the product and the gift, the type of brand used in the promotion and the deal‐proneness.

Design/methodology/approach

In an experimental context, 247 subjects were randomly assigned to a 2 (product type: utilitarian vs hedonic)×2 (gift type: utilitarian vs hedonic)×2 (brand type: high equity vs medium equity) between‐subjects factorial design.

Findings

Results indicate that the nature of the promoted product does not influence consumer response. Overall evaluation of gift promotions is more favourable when simultaneously the brand promoted has high equity and the fit between the promoted product and the gift is high. Offering a gift that fits with the product and using high equity brands is a wise strategy to positively influence purchase intentions. Findings also show that deal proneness has a positive impact on purchase intentions.

Research limitations/implications

A limited set of product categories, gifts and brands were used. Future research should also examine other variables and use a representative sample.

Practical implications

Findings provide useful guidelines for the design of gift promotions.

Originality/value

Most previous research has focused on monetary promotions with little about non‐monetary promotions. This paper addresses this gap by analysing consumers' responses to gift promotions incorporating key determinants in the analysis.

Details

Journal of Product & Brand Management, vol. 20 no. 2
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 1 November 2018

Yanping Gong, Wei Hou, Qin Zhang and Shuang Tian

Decision theory holds that the ambiguity of decision information affects the choices of decision makers, who have the emotion of “ambiguity aversion” when making fuzzy…

Abstract

Purpose

Decision theory holds that the ambiguity of decision information affects the choices of decision makers, who have the emotion of “ambiguity aversion” when making fuzzy decisions. The purpose of this paper is to explore the neural mechanism how the information ambiguity of different sales promotion strategies influences consumers’ purchasing decision.

Design/methodology/approach

The paper uses the event-related potential (ERP) technique and experiment.

Findings

Results indicate that the information ambiguity of sales promotion strategies did influence the purchasing decision of consumers, and there were significant differences in the amplitudes of brain wave P2, N2 and P3 when consumers encountered the sales promotions of different types (discounts and gift-giving). This reflects the difference in perceived risk, decision-making conflict and decision-making attitude. It means that compared with discounts, the perceived risk and difficulty increased while the decision-making confidence plunged when consumers were faced with gift-giving promotions. This finding gives an explanation on the neural level why consumers prefer discounts, rather gift-giving sales promotions.

Practical implications

For the merchants to promote commodities online, it is suggested that the actual benefit from the sales promotion should be specified to reduce the ambiguity of sales promotion information. As the neuromarketing develops, merchants have obtained more effective approaches to study marketing strategies.

Originality/value

One of the theoretical contributions this paper made is that the authors innovatively explored the consumer’s preference to online sales promotion strategies from the perspective of fuzzy decision. Second, the authors adopted the ERP technique to study the influence of the ambiguity of sales promotion information on the consumer’s purchasing behaviors. Third, this study provides an explanation for why consumers prefer the sales promotion type of discounts according to the neural mechanism of decision making.

Details

Journal of Contemporary Marketing Science, vol. 1 no. 1
Type: Research Article
ISSN: 2516-7480

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