Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

University of Miami study reveals strategy for using free giveaways to maximize sales

04.04.2013
New research from the University of Miami School of Business Administration offers marketers a strategy for how best to structure free giveaways with products in order to maximize sales.

The study, just published in the Journal of Marketing, shows that when a product that triggers more emotion (called affect), such as makeup, is offered with a free gift, shoppers are more likely to buy that product if the type of gift is unknown than if the type of gift is revealed.

So much so, that in this case, it can up to double the purchase likelihood. Conversely, if a product that triggers less emotion and more cognition (called cognitive), like a vacuum cleaner, is offered with a gift, but that gift is unknown, shoppers can be up to 50 percent less likely to buy the product than when they know what the gift is.

"Past research has supported both the positive and negative effect of uncertainty in promotions," said Michael Tsiros, department chair and professor of marketing at the University of Miami School of Business Administration and one of the researchers. "What we have lacked so far was a framework that can explain when uncertainty will harm and when it will benefit marketing promotions. This work is novel in that it shows that the effectiveness of these promotions depends on whether the purchase decision is affective, meaning there is an emotional influence on the decision-making process, or cognitive, meaning there is more cognitive processing," added Tsiros, who conducted the research with Juliano Laran, an assistant professor at the School.

The research involved four studies of more than 1,000 people in both field and lab settings. Other findings include:

Offering one out of a possible four free gifts can be more effective for affective decisions than offering two certain gifts. This is because two certain gifts might "kill the fun" associated with uncertainty, something people making more emotional purchases like. The opposite is true for cognitive decisions.

Surprise coupons (coupons you bring to a store and, at the check out counter, their discount value or free gift is revealed by the clerk scanning a code) are becoming common with bookstores like Barnes & Noble. The researchers' prediction is that surprise coupons for magazines and other entertainment products will be more effective for those making affective decisions than for those making cognitive decisions, like for textbooks.

"Marketers struggle to design effective and profitable promotional campaigns," said Laran. "This research has both theoretical implications for research on affect and uncertainty, and practical implications for marketing managers designing and implementing campaigns, big and small."

About the University of Miami School of Business Administration

The University of Miami School of Business Administration is a comprehensive business school, offering undergraduate business, full-time MBA, Executive MBA, MS, PhD and non-degree executive education programs. One of 12 colleges and schools at the University of Miami, the School is located in a major hub of international trade and commerce and acclaimed for the global orientation and diversity of its faculty, students and curriculum. The School delivers its programs at its main campus in Coral Gables as well as at locations across Florida and abroad. More information about the University of Miami School of Business Administration can be found at http://www.bus.miami.edu.

Tracy Simon | EurekAlert!
Further information:
http://www.miami.edu

More articles from Studies and Analyses:

nachricht Smart Data Transformation – Surfing the Big Wave
02.12.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT

nachricht Climate change could outpace EPA Lake Champlain protections
18.11.2016 | University of Vermont

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Significantly more productivity in USP lasers

In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.

Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...

Im Focus: Shape matters when light meets atom

Mapping the interaction of a single atom with a single photon may inform design of quantum devices

Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...

Im Focus: Novel silicon etching technique crafts 3-D gradient refractive index micro-optics

A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.

Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...

Im Focus: Quantum Particles Form Droplets

In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.

“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...

Im Focus: MADMAX: Max Planck Institute for Physics takes up axion research

The Max Planck Institute for Physics (MPP) is opening up a new research field. A workshop from November 21 - 22, 2016 will mark the start of activities for an innovative axion experiment. Axions are still only purely hypothetical particles. Their detection could solve two fundamental problems in particle physics: What dark matter consists of and why it has not yet been possible to directly observe a CP violation for the strong interaction.

The “MADMAX” project is the MPP’s commitment to axion research. Axions are so far only a theoretical prediction and are difficult to detect: on the one hand,...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ICTM Conference 2017: Production technology for turbomachine manufacturing of the future

16.11.2016 | Event News

Innovation Day Laser Technology – Laser Additive Manufacturing

01.11.2016 | Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

 
Latest News

NTU scientists build new ultrasound device using 3-D printing technology

07.12.2016 | Health and Medicine

The balancing act: An enzyme that links endocytosis to membrane recycling

07.12.2016 | Life Sciences

How to turn white fat brown

07.12.2016 | Health and Medicine

VideoLinks
B2B-VideoLinks
More VideoLinks >>>