Promotional Bundles and Consumers’ Price Judgments: When the Best Things in Life Aren’T Free

Three experiments examined consumers’ willingness to pay (WTP) for products bundled together in a promotion. Describing one of the disparate products in the bundle as “free” decreased WTP for each product when sold individually. However, a “freebie” offer did not influence the overall price for the bundle of disparate products, a finding robust across different settings and populations. The differential effect of freebies is explained by varying judgment difficulty, with the price being easier to arrive at for just a single product than for the combination. Consistent with this explanation factors influencing judgment difficulty moderated the freebie devaluation effect.



Citation:

Michael Kamins, Valerie Folkes, and Alexander (Sasha) Fedorikhin (2010) ,"Promotional Bundles and Consumers’ Price Judgments: When the Best Things in Life Aren’T Free", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 542-542 .

Authors

Michael Kamins, Stony Brook University, USA
Valerie Folkes, Marshall School of Business, University of Southern California, USA
Alexander (Sasha) Fedorikhin, Kelley School of Business, Indiana University, USA



Volume

NA - Advances in Consumer Research Volume 37 | 2010



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