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Free vs. Discount - Influence on consumer behaviour and product perception

  • People are surrounded by many offers every day, a discount, a gift or a special sale. A walk through a store can lead us to purchases which are not necessary but in our minds are worth it. Pricing may be one of the easiest ways to influence consumers and to make products more attractive. This study compares the pricing practices “use of word free/free offers” for example buy one get one free and “discount.” Those two practices have different influences on the consumer behaviour and the product perception. A discount tends to be less worth it than a free offer if an average customer would be asked. A survey of over 200 people was made to witness this statement. This number of people were divided into two groups which were asked different questions via an A/B testing survey. Group A was asked about a free product, and group B was asked about a discount. Additionally, this study includes a field validation in the form of observation. Customers of a transregional drugstore were observed when buying a product. This drugstore where the validation was made offers a bi-weekly brochure with promoted products. Among them are discounts and free offers. The number of sales was compared and analysed to confirm the results of the survey.

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Author:Kerstin Frick
Advisor:Kai-Markus Müller
Document Type:Bachelor Thesis
Year of Completion:2018
Granting Institution:Hochschule Furtwangen
Date of final exam:2018/08/31
Release Date:2018/09/03
Tag:Discount; Free offer; Price psychology; Product value; Quality perception
Page Number:50
Degree Program:IBW - Internationale Betriebswirtschaft
Functional area:Marketing
Licence (German):License LogoUrheberrechtlich geschützt