Free Gifts

Business studies study module

A gift is an item given to the customer free of charge after buying a product which it is pegged on or buying products of a given value. The gift may not necessarily be the same as the product bought, but they are meant to encourage the customer to buy more or give the customer opportunity to explore the product given as a gift.

Advantages of free gifts

  • It enable the customer to enjoy the product given as a gift without paying for it
  • It persuades the customer to buy more of the product in order to get the gift
  • It is an additional product, and therefore increases the customers satisfaction
  • It may help in creating loyalty in the product being promoted

Disadvantages of free gifts

  • It makes the customer buy including products they didn’t require in order to the said gift
  • The cost of the product may be very expensive for he customer
  • Some middlemen may remove the gift and keep or even sell to the customer to maximize profit

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