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Impact of Buy One Get One Free Promotion Strategy on Business

Last Updated on February 21, 2022 By Quratulain Merchant 6 Comments

Deep down, we all know that nothing is for free. You may wonder what happens behind the business strategy of “Buy One Get One Free?”  This strategy is largely marketed towards women. The word “free” can make her a shopping lunatic. However, there are strong reasons for the promotion strategy. 

Table of Contents

  • What is BOGOF?
  • The Hidden Downside
  • The Psychological Effect of the Word “FREE”
  • Benefits for the Sellers
  • Conclusion

What is BOGOF?

Corporations aren’t giving us promotions from the goodness of heart. The truth is that it boosts up their business magnificently. There are many successful marketing schemes. One such marketing strategy is the use of BOGOF, which stands for “Buy One Get One Free.”  

Although the implication of BOGOF is that they are selling both the items at half price, this is not true. In fact, the price of the promotion is calculated smartly. The seller keeps the usual margin of profit in selling both the items together. Not only does it give them profit, but it also lets them get rid of the unwanted items.   

The Hidden Downside

There are unfavorable outcomes from this marketing technique on the consumer side. In fact, in 2014, BOGOF was banned in the United Kingdom because it led to food wastage. Buying from this promotion often leads customers to buy more than they need. 

In addition, this promotion tactic is leading to a rise in global obesity. People are consuming more food than necessary through this promotion.  

Furthermore, It makes us buy useless items that we don’t really need. It makes us wear low-quality clothes. Also, it makes us eat bland food instead of the tastier option at the same price. Most importantly, it makes us spend more money than we intended to. 

Conclusively, there are a lot of disadvantages in BOGOF promotion. 

The Psychological Effect of the Word “FREE”

With so many disadvantages, why do we still buy from the BOGOF promotions? Why would we want to spend more of our hard earned cash on something we don’t even need?

The answers lie on the powerful word “free”. 

Research has shown that there is a psychological effect of the word “free.” Psychologist Professor Dan Arierly proved this theory by performing an experiment with the luxurious Lindt Truft and the common Kiss chocolates. In the first scenario, the majority of the people chose 15 cents Lindt Truffle chocolates over the one-cent Hershey’s Kiss chocolate.  

However, the majority of the people bought Hershey’s chocolates when it was put on BOGOF promotion with no price change on both the chocolates.  

Hence, the word “free” has a powerful and irresistible attraction.  

Marketers either provide a free product or a free service. Nowadays, with Covid around, “free delivery” service has boomed the market! The “free delivery” service makes the consumer purchase more items, which increases sales of a particular business.    

Not only does the word “free” have an attraction, it makes the buyer feel good. Coupons and promotions build excitement in customers. When availing such precious offers, it creates satisfaction and gives them a good feeling.  

Benefits for the Sellers

Retailers are well aware of these psychological effects and for centuries they have used this tactic against customers.  

Suppose you have an old stock of jeans and a new batch of jeans are on their way. What do you do with the current old jeans that are not getting sold? You have achieved the cost of these jeans. Any profit on these jeans would be a bonus.

The smart solution would be to put the BOGOF promotion with the new pair of jeans. This way you get rid of the old stock with profit and start the sales of the new batch of jeans. It’s a win-win for the sellers at this point!   

Overall, there are 3 big benefits in BOGOF promotions on a business.

First of all, it helps clear out the items that the seller is struggling with.

Also, it helps the seller boost more sales.

Lastly, it engages the customer and gives psychological satisfaction to come back again. 

Conclusion

It is evident that nothing is for free. Not even when you buy from promotions that offer another item for free. BOGOF is a marketing scheme which does wonders to a business.

This particular marketing technique triggers a psychological effect on customers to buy from promotions and avail a satisfying feeling. Now you know why you feel happy after shopping! 

Quratulain Merchant

A content mother, a former student of Hisham Sarwar, and a professional SEO blogger on multiple niche giving services at Fiverr.

Filed Under: Marketing & Advertising

Reader Interactions

Comments

  1. um yousuf says

    August 31, 2020 at 6:30 am

    Oh wow! Didn’t know about the psychological side to this. Good info 👍 interesting, makes me ponder…

    Reply
    • Quratulain Merchant says

      September 29, 2020 at 3:44 pm

      Well, now you know 😀

      Reply
  2. Abid says

    August 31, 2020 at 2:43 pm

    Yes I agree with the author because it is sure that company will never opt for loss and consumer will spend more on near expiry items. Wisely written article.

    Reply
    • Quratulain Merchant says

      September 29, 2020 at 3:45 pm

      A very clever way to escape loss!

      Reply
  3. Umme Hasan says

    August 31, 2020 at 2:53 pm

    True, agree with auther. Consumers can be aware of these tactics. Nothing is free. Totally agree with auther.

    Reply
    • Quratulain Merchant says

      September 29, 2020 at 3:46 pm

      It does open our eyes, dosen’t it?!

      Reply

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