If You're A Sucker For 'Free Gift With Purchase,' You Might Just Be A Sucker — Here's Why
When your favorite brand or retailer offers a promotion, which would you rather have: 10% off or a free gift with your purchase?
Research suggests that in many instances, consumers prefer the freebie, whether it’s a free sample (think Sephora) or a branded item like a tote bag (Sezane is famous for them). Experts say there are several reasons why that is — and retailers have their own motives for offering gifts.
In many instances, shoppers view brands more favorably when they offer free gifts instead of discounts, and this can make customers more loyal, according to a 2024 survey by gifting company Snappy. It’s also a way for retailers to stand out and lure customers.
“Anybody can offer dollars off or cents off on a particular product, but not everybody is going to be able to or be creative enough to offer something else besides a discount,” explained Roger Beahm, professor of practice in marketing, and the director of the Retail Learning Labs at the Center for Analytics Impact at Wake Forest University.
However, it’s important for consumers to understand why retailers and brands offer free gifts, including what retailers get out of it and how customers benefit.
If you’re usually tempted to shop when you get a free gift with a purchase, here’s what experts want you to know.
Why do retailers offer free gifts?
Retailers might offer a freebie via a partnership with a brand or manufacturer, such as a cereal bowl with the purchase of a specific cereal brand, Beahm said.
In other instances, brands and retailers might gift a specific, exclusive item if you spend a certain amount, provide samples of a new product, or give away excess inventory to reward customers, explained Lennart Baardman, a University of Michigan assistant professor of technology and operations who researches retail analytics. It’s sometimes a cost-effective way for brands to appeal to shoppers.
Research suggests that customers perceive brands with low prices or those that offer discounts as lower quality. “Whereas the free gift, customers don’t have that price connotation to it, so they just think of it as having full value, full quality, and they’re getting it completely for free,” Baardman said.
Free gifts also incentivize people to shop, especially when retailers or brands advertise and communicate the promotion, Beahm added. As a result, shoppers may spend and buy more than they might normally to get a gift.
“It’s that feeling that you’re getting a deal,” Baardman said.
Customer loyalty is another factor. More than 70% of consumers said that when they get exclusive items or quality gifts from a loyalty program, “they see the brand more favorably,” according to the Snappy survey.
“When you give a free item with purchase, you’re enhancing the equity as opposed to discounting it, which is what happens when you temporarily reduce your price on an item,” Beahm added.
Many brands target their loyal customers with freebies that they know they want, Carol Osborne, director of the advertising degree program and senior marketing instructor at the University of South Florida, told HuffPost. “Now more than ever, retailers need to do free gifts because they have to have that relationship with the customer, and customers are so fickle.”
Why do consumers like freebies so much?
Freebies not only help build loyalty and give the impression that a brand is of higher quality, but customers also appreciate the exclusivity of freebies from their favorite brands and retailers. One study suggests they even feel “lucky” getting them.
“There’s a sense, particularly if it’s a limited-time offering, that they’re going to miss out — there’s that fear of missing out,” Beahm said. “There’s that sense of getting something that they might not otherwise be able to.”
It’s also just a “feel-good thing” that comes with an element of surprise, Osborne said. Some shoppers are even more excited to purchase when they know they’re getting a free gift but don’t know what the gift actually is, research suggests.
“I think it’s that cachet that I’ve got it, and someone else doesn’t — and, I got it because I’m a regular customer,” she said, adding that consumers might be so excited about the gift that they tell their friends and post about on social media, which can offer “free publicity” for the retailer or brand.
This is known as the principle of reciprocity, when consumers may feel compelled to do something for the company because of the emotional response from the gift, Beahm said. “That emotion can be highly motivating.”
Consumers also enjoy freebies simply because they like the item and feel like they’re saving money because they didn’t have to buy it, Beahm said. So they sometimes perceive the gift as a discount.
Which is actually a better deal for shoppers: gifts or discounts?
While it depends on the gift and how much customers have to spend to receive it, getting a discount is usually a better deal, Baardman said.
Say you were planning to buy a moisturizer from your favorite skin care brand. Getting a discount, such as 20% or 30%, would directly save you money — whereas, you’d likely end up paying full price for it and maybe have to buy a cleanser, serum or other items (also at full price) to get the gift. And you may not know how much that gift is truly worth.
But it also depends on the gift’s perceived value to customers, Beahm said. The goal is for retailers to offer a freebie that’s inexpensive for them and something that shoppers want, value and view as equal to or better than getting a percentage off an order.
Still, there are customers who would rather have a discount over a free gift no matter what, he added. “It’s why retailers don’t only give gifts. It’s why retailers will still discount at different times on different items.”
Here’s how to weigh the allure of the free gift.
When you’re tempted by a free gift when you’re shopping, Baardman said to realize that brands and retailers may be encouraging you to buy things you don’t need or want — and you might end up with a freebie that you also don’t need or want.
“Put yourselves in the shoes of your retailer,” Beahm added. “Think about what it’s bringing in value to them, and is it bringing value to you at the same time? If the answer is yes, then it’s a win-win.”
