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Product Launch and Increase in Sales through Free Product-Premiums - Moderating Effects of Value and Product-Premium Fit in the Dual Mediation Model

Roland Helm, Antje Mark and Sabine Bley

No 10/2007, Jena Research Papers in Business and Economics - Working and Discussion Papers (Expired!) from Friedrich Schiller University Jena, School of Economics and Business Administration

Abstract: The present study develops and tests based on the objectives of the dual-mediation-model an effectiveness model for free premiums. The proposed model is tested using different types of free premiums' characteristics (value, product-premium fit) as well as characteristics of consumers (smart- shopper-self-perception, free-gift-proneness). The results of the study show that high-value free premiums lead to better assessments of the promotional offer than low-value free premiums. The use of low-value free premiums should be avoided due to negative irradiation effects on the assessment of the promotional product. Consumers consider the value of a free premium as more important than its functional relation to the product. Additionally, a moderating role is empirically verified for both consumers' characteristics.

Keywords: Sales promotion; Free product-premium; Dual-Mediation-Model; Smart-shopper-self-perception; Free-gift-proneness; Moderation; Mediation (search for similar items in EconPapers)
Date: 2007-06-06
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Published as "The Effect of Free Product Premiums on Attitudes and Buying Intention for Durable Goods: Moderating Effects of Value and Product Premium Fit in the Dual Mediation Model", in: European Retail Research, Vol. 23, No. 1, April 2009, S.21-45

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