Retailers use BOGO deals to achieve several business goals without significantly damaging profit margins.
The primary driver behind BOGO success is the , where consumers experience irrational excitement when an item is offered at no cost. buy 1 get 1 free clothes
: Deep percentage discounts can sometimes lower the perceived quality of a brand. BOGO allows the "anchor" product to be sold at its full original price, maintaining its value perception. Retailers use BOGO deals to achieve several business
: Shoppers often prefer a "free" second item over a 50% discount on two items, even when the math is identical. The word "free" triggers positive emotional responses and reduces the "pain of paying". BOGO allows the "anchor" product to be sold
: Consumers often categorize the "free" item in a different mental account than the paid item, making it feel like a bonus that doesn't count against their budget.
While the "Buy 1, Get 1 Free" format is the most famous, several variations exist to suit different inventory needs: