CONSUMER MARKETING
FINDINGS FROM THE ARTICLES
Pricing & Promotions
Palmeira, M. M., and J. Srivastava (2013), “Free Offer ≠ Cheap
Product: A Selective Accessibility Account on the Valuation of Free
Offers”
While the price of the supplementary product itself serves as a natural anchor when it is offered
for a low price, the price of the focal product or purchase serves as a price anchor when the
supplementary product is offered for free.
Willingness to pay for the supplementary product varied directly with the price of the focal
product when it was offered on promotion for free.
Study 1:
● Free offers do not lead to a devaluation of supplementary products compared to the
control group.
● Devaluation does occur for discounted offers and is more prominent when the discount
is larger.
● “Free” is something different than just an extreme discount.
Study 2:
● Second study shows this effect is not driven by Promotion reactions (affect), Quality
perceptions (mapping difficulty), Feelings of reciprocity (Social norms).
Study 3:
● When a product is promoted for a low price, this price is used as a natural anchor,
causing a devaluation of the product.
● In contrast, when a product is offered for free, zero is not used as an anchor to estimate
its value. Rather, the price of the focal product is used as an anchor.
Study 4:
● Willingness to pay was influenced by the minimum purchase amount when the
supplementary product was on promotion for free but not when it was offered for a low,
discounted price.
Study 5:
● It may be possible for a devalued supplementary product to rebound after it has been on
promotion for a low, discounted price.
, Loyalty
Eelen, J., P. Ozturan and P. W. J. Verlegh (2017), “The Differential Impact of Brand
loyalty on Traditional and Online Word of Mouth: The Moderating Roles of Self-
Brand Connection and the Desire to Help the Brand”
● Loyalty significantly increased in-person WOM and insignificant for eWOM.
● For Self-Brand Connection, the results for both WOM and eWOM are significant,
meaning the more people identify themselves with the brand, the more likely they are to
talk about the brand.
● The interaction between Loyalty x Self-Brand connection was positive and significant
for eWOM, meaning Self-Brand connection is strengthening the effect of Loyalty in
online communications. As expected, Loyalty x Self-Brand connection did not moderate
the relationship between loyalty and in-person WOM.
● Online media use enhanced eWOM but not in-person WOM. This indicates that more
frequent users of online channels are the ones who prefer engaging in eWOM about
brands.
● eWOM is a social risk, but it can also be an opportunity for consumers who want to
express themselves to a wide audience. If loyal consumers feel highly motivated
(through high self-brand connection) to share a branded message, and are aware that
eWOM spreads fast to many people, then they should be more likely to spread eWOM
● Respondents are less likely to engage in eWOM than in-person WOM. Loyal consumers
are more likely to engage in WOM in person than in eWOM. eWOM is perceived to
diffuse faster than WOM in person. The more loyal consumers perceive WOM to diffuse
fast, the more likely they are to engage in it, AND this effect is stronger with increasing
Self Brand Connection.
● Loyal customers are not always brand advocates; it depends on the communication
channel (WOM > eWOM).
In general, loyal consumers are not more willing to spread eWOM than occasional
consumers, but they can be boosted to spread eWOM when they are made aware that
online support for a brand is important. They need to be motivated to do so.
○ This is the case if the brand is closely connected to what they would like to
express to other consumers (sbc).
○ When they feel they can help a brand and spread a message fast.
FINDINGS FROM THE ARTICLES
Pricing & Promotions
Palmeira, M. M., and J. Srivastava (2013), “Free Offer ≠ Cheap
Product: A Selective Accessibility Account on the Valuation of Free
Offers”
While the price of the supplementary product itself serves as a natural anchor when it is offered
for a low price, the price of the focal product or purchase serves as a price anchor when the
supplementary product is offered for free.
Willingness to pay for the supplementary product varied directly with the price of the focal
product when it was offered on promotion for free.
Study 1:
● Free offers do not lead to a devaluation of supplementary products compared to the
control group.
● Devaluation does occur for discounted offers and is more prominent when the discount
is larger.
● “Free” is something different than just an extreme discount.
Study 2:
● Second study shows this effect is not driven by Promotion reactions (affect), Quality
perceptions (mapping difficulty), Feelings of reciprocity (Social norms).
Study 3:
● When a product is promoted for a low price, this price is used as a natural anchor,
causing a devaluation of the product.
● In contrast, when a product is offered for free, zero is not used as an anchor to estimate
its value. Rather, the price of the focal product is used as an anchor.
Study 4:
● Willingness to pay was influenced by the minimum purchase amount when the
supplementary product was on promotion for free but not when it was offered for a low,
discounted price.
Study 5:
● It may be possible for a devalued supplementary product to rebound after it has been on
promotion for a low, discounted price.
, Loyalty
Eelen, J., P. Ozturan and P. W. J. Verlegh (2017), “The Differential Impact of Brand
loyalty on Traditional and Online Word of Mouth: The Moderating Roles of Self-
Brand Connection and the Desire to Help the Brand”
● Loyalty significantly increased in-person WOM and insignificant for eWOM.
● For Self-Brand Connection, the results for both WOM and eWOM are significant,
meaning the more people identify themselves with the brand, the more likely they are to
talk about the brand.
● The interaction between Loyalty x Self-Brand connection was positive and significant
for eWOM, meaning Self-Brand connection is strengthening the effect of Loyalty in
online communications. As expected, Loyalty x Self-Brand connection did not moderate
the relationship between loyalty and in-person WOM.
● Online media use enhanced eWOM but not in-person WOM. This indicates that more
frequent users of online channels are the ones who prefer engaging in eWOM about
brands.
● eWOM is a social risk, but it can also be an opportunity for consumers who want to
express themselves to a wide audience. If loyal consumers feel highly motivated
(through high self-brand connection) to share a branded message, and are aware that
eWOM spreads fast to many people, then they should be more likely to spread eWOM
● Respondents are less likely to engage in eWOM than in-person WOM. Loyal consumers
are more likely to engage in WOM in person than in eWOM. eWOM is perceived to
diffuse faster than WOM in person. The more loyal consumers perceive WOM to diffuse
fast, the more likely they are to engage in it, AND this effect is stronger with increasing
Self Brand Connection.
● Loyal customers are not always brand advocates; it depends on the communication
channel (WOM > eWOM).
In general, loyal consumers are not more willing to spread eWOM than occasional
consumers, but they can be boosted to spread eWOM when they are made aware that
online support for a brand is important. They need to be motivated to do so.
○ This is the case if the brand is closely connected to what they would like to
express to other consumers (sbc).
○ When they feel they can help a brand and spread a message fast.
