{"id":33282,"date":"2021-04-25T09:51:27","date_gmt":"2021-04-25T13:51:27","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=33282"},"modified":"2021-04-29T21:27:15","modified_gmt":"2021-04-30T01:27:15","slug":"marketing-freebies","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/marketing-freebies\/","title":{"rendered":"Marketing Freebies: Don&#8217;t Fall Into the Trap"},"content":{"rendered":"\n<p>Why are <a href=\"https:\/\/www.shortform.com\/blog\/freebie-marketing\/\">marketing freebies<\/a> so dangerous? Why will we almost always choose &#8220;free&#8221; even if there&#8217;s a more logical option?<\/p>\n\n\n\n<p>We are psychologically attracted to anything that&#8217;s free, that&#8217;s why marketing freebies are such powerful tools. Even attaching the concept of &#8220;free&#8221; to a purchase can trigger you to irrationally spend more money on whatever it is.<\/p>\n\n\n\n<p>Keep reading to learn more about the power of marketing freebies.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Power of Marketing Freebies<\/strong><\/h2>\n\n\n\n<p>Marketing freebies are powerful tools because we are inherently attracted to things that are free. This is because almost every transaction has an upside and a downside. The upside is that you gain something from the transaction. The downside is that you\u2019ve spent money and it\u2019s possible you won\u2019t be satisfied with your purchase.&nbsp;<\/p>\n\n\n\n<p><strong>\u201cFree\u201d eliminates the possibility of a downside in a transaction.<\/strong> There\u2019s no risk that your money will be spent on a dissatisfying purchase. Furthermore, because the free item is upside-only, you perceive it as much more valuable than it really is. For these reasons, you\u2019ll naturally choose a free item above all else, even when it\u2019s not the most rational choice. The following experiment illustrates how the possibility of getting something for free can interrupt <a href=\"https:\/\/www.shortform.com\/blog\/what-is-rational-thought\/\">rational thought<\/a> processes.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Experiment: The Chocolate Sale&nbsp;<\/strong><\/h4>\n\n\n\n<p>In this experiment, a chocolate-selling stand was set up in one of MIT\u2019s student centers.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>In the first part, customers had the choice between a Lindt truffle for 15 cents or a Hershey Kiss for one cent. In this scenario, 73% of the customers chose the Lindt truffle. This was a rational choice\u2014not only was the Lindt truffle an objectively superior product but it was being offered at a very attractive price.&nbsp;<\/li><li>In the second part, each chocolate\u2019s price was lowered by one cent. Now, the Lindt truffle was 14 cents, and the Hershey Kiss was a freebie. Even though the Lindt truffle was still a superior product at a great price, the label of \u201cfree\u201d on the Kisses had more power\u2014this time, 69% of the customers chose the Hershey Kiss.&nbsp;<\/li><\/ul>\n\n\n\n<p>This behavior is especially interesting because it contradicts the standard economic model, which would predict that, because both chocolates were reduced in price by the same amount, there should be no difference in purchase rates. Customers would do the same simple cost-benefit analysis as when both chocolates came with a cost, and conclude that the Lindt truffle would be a far more pleasurable experience for a very small cost. <strong>However, the standard economic model doesn\u2019t take into account the power of marketing freebies. <\/strong>Instead of thinking through a cost-benefit analysis, humans quickly push rational <a href=\"https:\/\/www.shortform.com\/blog\/methods-of-decision-making-crucial-conversations\/\">decision-making<\/a> aside in favor of a transaction with no downside.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Even Attached to a Price, \u201cFree\u201d Works<\/strong><\/h3>\n\n\n\n<p>It\u2019s fairly <a href=\"https:\/\/www.shortform.com\/blog\/common-sense-pamphlet\/\">common sense<\/a> that when you\u2019re presented with two products\u2014one free and one at a price, no matter how small\u2014that you\u2019ll choose the free item. However, what\u2019s less common sense is<strong> <\/strong>that \u201cfree\u201d has the power to influence your choices even when you\u2019re choosing between two products that must have a price. <strong>Just by attaching the concept of \u201cfree\u201d to a purchase, advertisers can trigger an irrational reaction in you that benefits them, and costs you more money.&nbsp;<\/strong><\/p>\n\n\n\n<p>You\u2019ll commonly see online retailers putting this in practice by offering free shipping for orders that exceed a certain amount. While free shipping may <em>feel <\/em>like a good deal, it often costs you extra money in the end. Imagine that you\u2019re shopping on Amazon, and your total comes to $23.75. You receive a notification that you\u2019re just $1.25 away from qualifying for FREE shipping. You add one more book to your order and successfully snag the free shipping deal. The problem? The book you added cost you an extra $11, whereas paying for shipping would have only cost you $4.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Falling Victim to &#8220;Free&#8221;<\/h3>\n\n\n\n<p>If you\u2019re skeptical that it\u2019s truly the idea of \u201cfree\u201d that triggers this reaction and not just low-cost shipping, consider what happened in France when Amazon rolled out their free shipping concept. Instead of <em>free<\/em> shipping, Amazon.fr chose to offer shipping at the very, very low cost of one franc (20 cents). When the shipping was a low cost\u2014even a negligible amount like one franc\u2014customers acted much more rationally and made fewer impulse purchases to push their order amount to the threshold for the shipping discount.&nbsp;<\/p>\n\n\n\n<p>While falling victim to the trap that \u201cfree\u201d presents might not be a big deal on smaller purchases like books, be careful not to let it influence the way you make larger decisions, like buying a new car. Imagine you\u2019re looking for a new car for your family\u2014you have the choice between a sports car and a sturdy SUV. The SUV costs a bit less and rationally, is a better match for your needs. However, your salesperson mentions that the sports car comes with <em>free<\/em> oil change for four years. Triggered by the idea of getting something for free\u2014and irrationally, thinking that these oil changes will make up the difference in cost between the two cars\u2014you spring for the sports car.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why are marketing freebies so dangerous? Why will we almost always choose &#8220;free&#8221; even if there&#8217;s a more logical option? We are psychologically attracted to anything that&#8217;s free, that&#8217;s why marketing freebies are such powerful tools. Even attaching the concept of &#8220;free&#8221; to a purchase can trigger you to irrationally spend more money on whatever it is. Keep reading to learn more about the power of marketing freebies.<\/p>\n","protected":false},"author":8,"featured_media":33338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[104,9,103],"tags":[270],"class_list":["post-33282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing","category-psychology","category-sales","tag-predictably-irrational","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Marketing Freebies: Don&#039;t Fall Into the Trap - Shortform Books<\/title>\n<meta name=\"description\" content=\"We are psychologically attracted to anything that is free, that&#039;s why marketing freebies are such powerful tools. 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Learn how to spot traps.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/marketing-freebies\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-25T13:51:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-04-30T01:27:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2021\/04\/free.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1011\" \/>\n\t<meta property=\"og:image:height\" content=\"650\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Hannah Aster\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Hannah Aster\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/marketing-freebies\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/marketing-freebies\/\"},\"author\":{\"name\":\"Hannah Aster\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/f39f52830e4f7039a16e45d12354542f\"},\"headline\":\"Marketing Freebies: Don&#8217;t Fall Into the Trap\",\"datePublished\":\"2021-04-25T13:51:27+00:00\",\"dateModified\":\"2021-04-30T01:27:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/marketing-freebies\/\"},\"wordCount\":884,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/marketing-freebies\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/04\/free.jpg\",\"keywords\":[\"Predictably Irrational\"],\"articleSection\":[\"Marketing\",\"Psychology\",\"Sales\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/marketing-freebies\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/marketing-freebies\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/marketing-freebies\/\",\"name\":\"Marketing Freebies: Don't Fall Into the Trap - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/marketing-freebies\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/marketing-freebies\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/04\/free.jpg\",\"datePublished\":\"2021-04-25T13:51:27+00:00\",\"dateModified\":\"2021-04-30T01:27:15+00:00\",\"description\":\"We are psychologically attracted to anything that is free, that's why marketing freebies are such powerful tools. 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