Free Offers and Pricing

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Spenders Gonna Spend, Savers Gonna Save

Daniel Kephart III posted Mar 11, 2018 5:50 PM

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I believe the “free” offers used by online retailers or marketers are both beneficial and necessary.  Their benefit is on display, according to the 2009 MARC Research study on MarketingProfs, as one of the most used incentives because they’re driving spenders to spend more and more often (Shoppers, 2010).  Consequently, “free” undoubtedly attracts more customers.  But I think these offers, such as free shipping and returns, are also necessary for online retailers.  They are necessary to reduce the risks associated with online shopping and to also bring products to customers at competitive costs as compared to offline shopping channels (Free, 2012).

 

The 2009 MARC Research study gave a slight edge in usage to coupons over free shipping (Shoppers, 2010).  As online shopping becomes more prevalent, I would expect free offers online to be more effective in producing conversions.  However, in an attempt gather more information for this post, I Googled “free offers or coupons?” and the results were surprising, at least to me.  Groupon and coupons.com were first on the results list.  But sites featuring online offers, promo codes and discount codes followed.  So to answer the question on if “free” offers would be more effective than coupons, I’ll push.  I’d expect online offers to be more effective with the growth of digital shopping, but at the end of the day, I believe that spenders will spend, with a draw towards “free” and savers will continue to save via coupons or “free”, whichever is more prudent.

 

Resources

The Importance of ‘Free’. (2012, April 17). MarketingProfs. Retrieved from http://www.marketingprofs.com/short-articles/2555/the-importance-of-free#ixzz28gdt7f4u .

Shoppers Seek Coupons and Free Shipping Offers. (2010, April 13). MarketingProfs. Retrieved from http://www.marketingprofs.com/charts/2010/3542/shoppers-seek-coupons-and-free-shipping-offers#ixzz28gf7i57W .