Principles of Geometric Accounting. Is Bigger Always Better When It’S Free?

Igor Makienko, University of Nevada, Reno, USA
Free gifts with ambiguous monetary values offered during sales promotions may vary in their sizes. We suggest that consumers infer the value of a free gift based on its size and the price of the promoted product and these factors may have significant effect on consumers’ deal evaluations, purchase intentions and retailer’s credibility. Our results show that bigger size gifts enhance perception of a deal but only when they are offered with higher-priced products. On the other hand, size of a gift does not influence consumers’ deal perceptions when the price of the promoted product is low.
[ to cite ]:
Igor Makienko (2009) ,"Principles of Geometric Accounting. Is Bigger Always Better When It’S Free?", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 1042-1042.