PlumX Metrics
Embed PlumX Metrics

Are “buy X get X free” price promotions effective? An acquisition-transaction value perspective

Marketing Intelligence and Planning, ISSN: 0263-4503, Vol: 41, Issue: 6, Page: 707-721
2023
  • 4
    Citations
  • 0
    Usage
  • 9
    Captures
  • 1
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    4
  • Captures
    9
  • Mentions
    1
    • News Mentions
      1
      • 1

Most Recent News

Study Results from Pennsylvania State University (Penn State) Broaden Understanding of Investment (Are "buy X Get X Free" Price Promotions Effective? an Acquisition-transaction Value Perspective)

2023 AUG 24 (NewsRx) -- By a News Reporter-Staff News Editor at Daily Marketing News -- Data detailed on Investment have been presented. According to

Article Description

Purpose: “Buy X Get X Free” promotions are popular across retail settings. Retailers promote a variety of products using this promotional frame. However, past research contains mixed findings about the effectiveness of this promotion compared to the straightforward discount on a single unit of a product. The goal of this research is to employ a theoretical lens to examine the effectiveness of “Buy X Get X Free” promotions. Design/methodology/approach: The theoretical framework was tested in two experiments using different products and samples. The data collected from each experiment were analyzed using both descriptive and inferential techniques to assess support for the theoretical arguments. Findings: Findings reveal that at identical levels of per-unit discount, the “Buy X Get X Free” promotion is perceived less favorably by consumers than a straightforward single-unit discount. Consumers perceive lower transaction value and acquisition value and, thereby, a lower purchase intention, from the “Buy X Get X Free” promotion compared to a single-unit discount. Practical implications: This research was conducted keeping in mind the popularity of the “Buy X Get X Free” promotion in the real world. The findings caution retailers against indiscriminately using this promotional frame. Originality/value: Using a theoretical lens, this research proposes and validates a framework to systematically examine consumers' perceptions of the two popular discount frames. The proposed theoretical framework provides a richer understanding of the underlying consumer psychology that drives the evaluation of these promotions. Further, primary data from lab experiments validates the framework. The research also helps advance the understanding of consumer evaluation of sales promotions in general.

Provide Feedback

Have ideas for a new metric? Would you like to see something else here?Let us know