From the course: Marketing Foundations: Value Proposition Development
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The power of free
From the course: Marketing Foundations: Value Proposition Development
The power of free
- Let's talk about the word free for a moment. The power of free extends beyond just shipping costs and can in fact be one of the most powerful words in the marketer's toolbox. In Dan Ariely's book called "Predictably Irrational," he shows an experiment that demonstrates our irrational exuberance for free things. In his now famous Hershey's kiss experiment, Ariely and his colleagues offered two kinds of chocolates, gourmet Lindt truffles and ordinary Hershey's kisses. They first priced the truffles at 15 cents each and the kisses at one cent each, but they limited customers to only one chocolate each. So not surprisingly, the vast majority of people chose the one Lindt truffle over a single Hershey's kiss. It was a great deal, it's only 15 cents, but then Ariely changed the pricing test to test the effect of free. They simply reduced the price of each candy so that the truffle was 14 cents, one cent less, and the kiss was…
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