“Free” Gifts and Irrational Preferences: an Exploration For Effects of Promotional Enticements on Financial Decision Making

Nese Nasif, University of Texas - Pan American, USA
Michael S. Minor, University of Texas - Pan American, USA
The bundled nature of many financial products, combined with the heuristic effects of a “free” label, may inhibit consumers from appropriately maximizing their utilities from these products. This study conducts an initial exploration in order to reveal whether this suspected irrational behavior exists within a randomly sampled population, and concludes that it does.
[ to cite ]:
Nese Nasif and Michael S. Minor (2011) ,"“Free” Gifts and Irrational Preferences: an Exploration For Effects of Promotional Enticements on Financial Decision Making", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 292-299.