In: Operations Management
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.
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!