As a consumer, what do you prefer: Buy 1 Get 1 Free or Buy 2 Get 50% Off?
If you’re like most people, you’re probably going to go with the former. The reason is simple: it’s just more appealing. You’re getting two things for the price of one! You get twice as much of what you want! It’s an incredible deal.
Because we prefer to get two items for the price of one. It’s simple math. When you buy one, you get one free, so you’re essentially getting two for the price of one. But when you buy two and get 50% off, it’s not quite as straightforward—you have to do some additional math. You have to figure out how much each item costs individually, then divide that by 2 and add it to your total cost (the original price of both items).
Why do Stores use these tactics?
It’s a way to bring customers into stores.
BOGO promotions are a way to get people into stores. They’re used to get people to buy things they wouldn’t have otherwise.
For example, let’s say you went to Reliance Trends and saw that they were having a Buy 2 Get 50% Off promotion on kids’ toys. You’d think “I don’t need any toys right now.” But if it was Buy 1 Get 1 Free on all toys, then maybe you would think “Well maybe I’ll buy one or two just in case we end up needing something later.”
It’s a way to get people to spend money on things they wouldn’t have otherwise.
BOGO is a way to get people to spend money on things they wouldn’t have otherwise. If you’re an economics nerd, this is called “bundling”. It’s basically a way for businesses to offer a good product or service at a lower price but still make the same amount of money as if they charged full price for both products.
The reason for this decision-making I think is because of buyer perception.
Buy 1 Get 1 Free or Buy 2 Get 50% Off are the exact same offer, but buy one get one free makes people feel like they are getting more value.