Human
Consumers Do Not Enjoy Receiving Free Perks in Public: Study
Benita Matilda
First Posted: Jun 19, 2013 10:29 AM EDT
The marketing technique of giving customers something for free actually puts them off. A latest study published in the Journal of Consumer Research states that people may not enjoy receiving free perks or upgrades in public.
"Preferential treatment is often conferred in public settings. When preferential treatment is unearned rather than earned, the presence of other consumers who do not receive the same treatment can diminish satisfaction for the consumer receiving preferential treatment," authors Lan Jiang (University of Oregon), JoAndrea Hoegg, and Darren W. Dahl from the University of British Columbia, said in a press statement.
Preferential treatment is when consumers receive extra benefits. This sort of marketing technique is common when travelling, shopping or dining out. Examples of preferential treatment are seen when a person wins free groceries at a supermarket, bypasses airport check-in due to frequent flyer status etc.
In this study, the authors set up a booth where they offered free samples of personal care products. A few customers received extra samples and were told that they were being offered the samples for being loyal customers, while other customers received extra samples with no explanation. A few consumers were present at the time when the samples were freely distributed. Many consumers were less satisfied with the extra samples and quit the booth quickly when no explanation was provided and other customers were present.
Through this study the researchers state that the companies should make an attempt to reach the consumers privately at the time of offering rewards that are not earned through effort or loyalty.
Authors conclude stating, "Social influence is a critical issue that must be considered by companies considering a preferential treatment program. If companies want to employ preferential treatment practices in public settings for publicity purposes, they should ensure that this special treatment is earned through effort or loyalty and that the rationale is understood by all of their customers."
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First Posted: Jun 19, 2013 10:29 AM EDT
The marketing technique of giving customers something for free actually puts them off. A latest study published in the Journal of Consumer Research states that people may not enjoy receiving free perks or upgrades in public.
"Preferential treatment is often conferred in public settings. When preferential treatment is unearned rather than earned, the presence of other consumers who do not receive the same treatment can diminish satisfaction for the consumer receiving preferential treatment," authors Lan Jiang (University of Oregon), JoAndrea Hoegg, and Darren W. Dahl from the University of British Columbia, said in a press statement.
Preferential treatment is when consumers receive extra benefits. This sort of marketing technique is common when travelling, shopping or dining out. Examples of preferential treatment are seen when a person wins free groceries at a supermarket, bypasses airport check-in due to frequent flyer status etc.
In this study, the authors set up a booth where they offered free samples of personal care products. A few customers received extra samples and were told that they were being offered the samples for being loyal customers, while other customers received extra samples with no explanation. A few consumers were present at the time when the samples were freely distributed. Many consumers were less satisfied with the extra samples and quit the booth quickly when no explanation was provided and other customers were present.
Through this study the researchers state that the companies should make an attempt to reach the consumers privately at the time of offering rewards that are not earned through effort or loyalty.
Authors conclude stating, "Social influence is a critical issue that must be considered by companies considering a preferential treatment program. If companies want to employ preferential treatment practices in public settings for publicity purposes, they should ensure that this special treatment is earned through effort or loyalty and that the rationale is understood by all of their customers."
See Now: NASA's Juno Spacecraft's Rendezvous With Jupiter's Mammoth Cyclone