the situation is when we were doing some shoping.. there is 2 same kind of product but in different brand and different kind of promotion.. which do you prefer?
Absolutely no doubt … price discount is better.
You have to do it properly, of course. That depends on your product, your pricing history, your competitors’ pricing and advertising history, and your individual market.
But on numerous occasions, I have done both promotions for the same client. And 90% of the time, price discount does better than premiums or free gifts.
The exceptions generally occur when the free gift is directly related to the product sold … for example: Free 100,000 mile, bumper-to-bumper warranty with every car sold. That is an outstanding premium, and it drives traffic to a car dealer.
So the better the premium, and the more closely related to the actual product being sold, the better it will work.
But all things being equal, price discounts work much better.
Absolutely no doubt … price discount is better.
You have to do it properly, of course. That depends on your product, your pricing history, your competitors’ pricing and advertising history, and your individual market.
But on numerous occasions, I have done both promotions for the same client. And 90% of the time, price discount does better than premiums or free gifts.
The exceptions generally occur when the free gift is directly related to the product sold … for example: Free 100,000 mile, bumper-to-bumper warranty with every car sold. That is an outstanding premium, and it drives traffic to a car dealer.
So the better the premium, and the more closely related to the actual product being sold, the better it will work.
But all things being equal, price discounts work much better.
References :
32 years in advertising