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Marketers notice it over and over: Promotional events like Free Comic Book Day are huge moneymakers, even though logic would seem to dictate that retailers would lose money.
The reason for this is what marketers call the reciprocity principle.
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Throughout Manhattan, company representatives handed out more than 40,000 products from P&G brands such as Gillette, Duracell, Scope, Febreze, Pampers, and Cover Girl.
Simply getting these products into the hands of consumers is something of a success: After all, every person who tries out one of these products has the potential of becoming a lifelong customer. When consumers get something for nothing, they respond in a host of surprising, mostly unconscious ways — and the net result is often that the companies handing out freebies are rewarded well for their “generosity.” Here are a few of the surprising ways consumers are affected by freebies: You feel obligated to buy more.
But the companies handing out complimentary donuts, comic books, ice cream, pancakes, and Slurpees love giveaways even more.
On the surface, freebies look like obvious money losers.
I’m a good dude, and I promote some pretty innocent stuff.