Explore BrainMass
Share

Price Discrimination: Buy One get One Free

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Provide an intuitive explanation for why a "buy one, get one free" deal in not the same as a "half-price" sale. Fully discuss

© BrainMass Inc. brainmass.com October 17, 2018, 12:36 pm ad1c9bdddf
https://brainmass.com/economics/managerial-economics/583910

Solution Preview

The main reason these deals are not the same is that consumers will buy more products under "buy one, get one free" (BOGO) than under "half-price" (HP). Many people who would normally only buy one unit -- and who would buy one unit at half the price under HP -- will instead buy two units under BOGO, because they have to buy two units to get the sale price. As long as the ...

Solution Summary

Difference between buy one get one free (BOGO) and half off sales

$2.19
Similar Posting

Principles of Marketing Products

Do you think if a product promotion has reached you for a product that you might potentially be interested in and the price seems "too high" then the target market in this instance has been missed or perhaps some part of this strategy is price conditioning with end consumers ?

Reference:

Acquisti, Alessandro and Varian, Hal R. (2005) â??Conditioning Prices on Purchase History.â??, Marketing Science, 24(3), pp. 367-38

View Full Posting Details