Sampling, discounts or pay-what-you-want: Two field experiments
Martin Natter and
International Journal of Research in Marketing, 2014, vol. 31, issue 3, 327-334
Free sampling and price discounts are important, popular promotional tools used to attract new customers by reducing their risk of trial. The authors investigate pay-what-you-want (PWYW) as an alternative promotional tool to free sampling and price discounts in two field experiments. The authors find significant differences in perceived promotional characteristics and relevant performance measures, such as trial and repeat purchases by new customers. The entertaining and innovative character of PWYW induces many people to try it. PWYW may yield a higher repeat purchase rate of new customers, and sellers using PWYW benefit from higher word-of-mouth behavior. Finally, PWYW yields the highest promotional revenues.
Keywords: Sampling; Free samples; Pay-what-you-want; Price discounts; Sales promotion (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:31:y:2014:i:3:p:327-334
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