Consumer Reflections on “Buy One Get One Free” (BOGO)
A rich literature in sales promotions has shown that the short-term sales are positively affected by offering promotions (Blattberg and Neslin, 1995). “Buy One and Get One free” (BOGO) is a common form of volume discount promotion, used universally in the marketing industry by retailers, enticing consumers to buy their product through the offer of a free gift. The BOGO advertising has been widely publicized in countless supermarkets and outlets as means of promoting the products. BOGO scheme is one type of popular product volume discount nonmonetary sales promotions schemes in which the consumer gets two (or more) products of the same type for the price of one, or receiving a free product by purchasing some other product. Promotions such as “buy one get one free,”, “buy two get one for free” and so on are frequently used to generate unplanned purchase (Inman et al., 2009).
Marketers find BOGO scheme has an attractive element to pull customers attraction towards purchasing their products in a short time period and also to capture the market for future business. When the word “Free” is noticeable in the product label or in the racks of supermarkets it usually catches the attention and the excitement of the consumers as the rewards for both the consumer and the retailers. The efficacy of free gifts is, however, in doubt, shoppers do not understand why retailers offer this kind of promotion when it is no more profitable for stores than a half-price sale. A study done in India has concluded that sales promotions like offering “free goodies” are not perceived favorable by consumers although this promotion is being widely promoted in India (Manalel et al., 2007).
Simonson et al. (1994) endorsed Manalel et al. (2007) and stated that consumers who are not interested in purchasing the additional product may not avail the BOGO promotion scheme. In Malaysia, BOGO scheme promotion is popularly used to attract local and foreign customers for the sales of their products. Malaysian consumers respond more to free samples and offering free samples have encouraged product trials (Ndubisi and Moi, 2006). Despite the growth in BOGO sales promotions and the concerns raised, there is a scarcity of literature devoted to the BOGO scheme in the market. Also, BOGO promotion scheme does not always achieve its objectives, such as increasing sales significantly (Gedenk et al., 2004). Therefore, the purpose of this study is to conduct an exploratory study to explore the drivers that influence the purchasing reflection towards BOGO scheme in the market.