There Is No Such Thing As a Free Lunch: the Negative Effect of Zero Price on Consumer Demand
Both intuition and empirical evidences indicate that people like cheap products and free products are particularly attractive. But we showed a backfiring effect of zero price on consumer demand and identified a moderator that could drive the effect of zero price on demand into either positive or negative direction.
Fengyan Cai and Xiaomeng Fan (2017) ,"There Is No Such Thing As a Free Lunch: the Negative Effect of Zero Price on Consumer Demand", in NA - Advances in Consumer Research Volume 45, eds. Ayelet Gneezy, Vladas Griskevicius, and Patti Williams, Duluth, MN : Association for Consumer Research, Pages: 1065-1065.
Fengyan Cai, Shanghai Jiao Tong University, China
Xiaomeng Fan, Northwestern University, USA
NA - Advances in Consumer Research Volume 45 | 2017
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