Question

In: Operations Management

1. How do “buy one, get one free” deals sometimes deceive customers? 2. Why do retailers...

1. How do “buy one, get one free” deals sometimes deceive customers?

2. Why do retailers like Amazon show customers a product’s original list price along with the discounted price?

3. Discuss sales promotions in general. Compare/contrast this type of sales promotions to other promotional tools (e.g. commercials). Consider objectives, costs, and how it can be integrated into a comprehensive, unified promotion message. Use examples from businesses you've seen using this strategy. Think about how it fits into their overall marketing campaign.

Solutions

Expert Solution

Buy one get one free is one of the promotional scheme companies are using throughout the world. If you buy one product second product is free as per Bogo deal.  

How do “buy one, get one free” deals sometimes deceive customers?

Businesses or Cooporation won't offer any deal to customers by the goodness of their heart. They do it because it is a good deal for their business.

Reason why Bogo is not a good deal for customer.

• Retailers may inflate the price of the first item to cover the free cost item.
For example, if a textile shop offers buy one get one free, they will cover the price of both dress in one.

• Sometimes companies offer BOGO promotion as they want to get rid of the old product which are going to be expired soon.
• Customers may purchase more items to make the advantages of bogo.
BOGO induces customers to buy more even if they actually don't need the product.
• Extra items get lost
If we purchase two items in Bogo offer the second item goes unused, or is wasted altogether.
• Low quality products
Sometimes business are offering Bogo as a way to sell their low quality or low demand products.
Buying products than they need means consumers spend more money than they intended, not less. So being aware of real price of product helps in determining whether a BOGO offer is a great deal or not.

Please give an upvote if you are satisfied with my answer. Thank you!


Related Solutions

A. Provide an intuitive explanation for why a "buy one, get one free" deal is not...
A. Provide an intuitive explanation for why a "buy one, get one free" deal is not the same as a "half-price" sale. (L06)   B. The Einstein Bagel Corp. offers a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $6. After a consumer accrues 10 stamps, she receives one dozen bagels free. This offer is an unlimited offer, valid throughout the year. The manager knows her products are normal goods. Given this...
a)How is a buy one get one free deal different from a 50% off sale? b)...
a)How is a buy one get one free deal different from a 50% off sale? b) which deal would a consumer prefer and c) which deal will a retailer prefer. Explain
What Online Retailers will do to get you to click buy? by: Charlie Wells Dec 02,...
What Online Retailers will do to get you to click buy? by: Charlie Wells Dec 02, 2015 TOPICS: E-Commerce SUMMARY: Retailers are trying to figure out how to get window shoppers to click 'buy' and make online purchases. There are several strategies. One is to follow shoppers around the web with ads for the products they abandoned. Emails are used to remind shoppers about what they left in their cart. Some stores use texts or push notifications. Leaving something in...
The Fast N' Hot food chain wants to test if their "Buy One, Get One Free"...
The Fast N' Hot food chain wants to test if their "Buy One, Get One Free" program increases customer traffic enough to support the cost of the program. For each of 15 stores, one day is selected at random to record customer traffic with the program in effect, and one day is selected at random to record customer traffic with program not in effect. The results of the experiment are documented in DATA. For each store, compute difference = traffic...
The Fast N' Hot food chain wants to test if their "Buy One, Get One Free"...
The Fast N' Hot food chain wants to test if their "Buy One, Get One Free" program increases customer traffic enough to support the cost of the program. For each of 15 stores, one day is selected at random to record customer traffic with the program in effect, and one day is selected at random to record customer traffic with program not in effect. The results of the experiment are documented in DATA. For each store, compute difference = traffic...
A supermarket chain wants to know if its "buy one, get one free" campaign increases customer...
A supermarket chain wants to know if its "buy one, get one free" campaign increases customer traffic enough to justify the cost of the program. For each of 5 stores it selects two days to run the test. For one of those days the program will be in effect. At 1% significance level, test the claim that the program increases traffic. Use t-distribution. For parts (a), (b), (c), round your answers to 2 decimal places. (a) ¯dd¯ = You MUST...
Suppose Cub Foods is offering BOGO (buy one get one free) deal on avocados. If you...
Suppose Cub Foods is offering BOGO (buy one get one free) deal on avocados. If you buy two avocados, you pay $4. If you buy one, you pay $2 each. a. Explain how this scheme is not a proper 2nd degree (volume) price discrimination scheme. How would you structure a proper 2nd degree (volume) PD scheme?
1) Why do we get sick? 2) How would you assess that your client is at...
1) Why do we get sick? 2) How would you assess that your client is at risk for eye disease? 3) How do the major components of each body system all interrelate to each other system? 4) List 2 symptoms of dehydration and the amount of fluids/day to ensure adequate hydration is maintained and helps to eliminate wastes from the body?
1. Why is it important to calculate your resting HR? 2. How do you TRULY get...
1. Why is it important to calculate your resting HR? 2. How do you TRULY get your resting HR? Which activities produced the lowest Heart Rates? Why do you think this is the case? What effect did walking have on your pulse rate? What effect did resting after running have on your pulse rate? What other factors besides exercise might influence your pulse rate? Give examples. To burn the most FAT, which part of your THRZ do you want to...
2) Why do sometimes investors and management have disagreements on how much risk to take on...
2) Why do sometimes investors and management have disagreements on how much risk to take on when thinking of investments? 3) Why is capital investment sometimes seen as voting with your feet? ie, indicating confidence in the future of the business?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT