The Impact of BOGO Deals on Market Research
- Aman Zaid
- Jun 2
- 3 min read
If you're a market researcher, you know that understanding consumer psychology is crucial. When running buy-one-get-one-free (BOGO) promotions, you need to consider how these offers are viewed and handled. In this article, we'll explore what motivates consumers to take advantage of these promotions, and what prevents some shoppers from participating.
The Impact of Emotions on BOGO Deals
BOGO promotions are very popular among retailers and consumers because they tap into the powerful psychological motivations associated with them. The most prominent emotions these offers rely on are:
FOMO (Fear of Missing Out)
FOMO (Fear of Missing Out) is a state in which a person constantly desires to participate for fear of missing out on an event they are not participating in. BOGO offers create a sense of scarcity, which prompts consumers to quickly purchase products and goods before the promotion ends.
Expected Value
BOGO offers are perceived as offering great value for money, as consumers feel they are getting more for their money. Receiving something extra at no additional cost triggers a positive psychological response.
Feelings of Indebtedness
BOGO promotions trigger the "reciprocity" principle. When consumers receive something free or extra, they feel a sense of giving and indebtedness, motivating consumers to choose a BOGO offer over a regular purchase of a single item.
The Paradox of Choice
This is an emotional state that refers to the difficulty of choosing between a variety, multiplicity, and increasing number of options. Despite the availability of more options, the sheer number of choices can be frustrating and distracting. When BOGO offers bundle two favorite items together, the decision-making process becomes easier and more rewarding.
In short, BOGO promotions work by activating the psychological drivers of scarcity, value, reciprocity, and choice. These drivers encourage consumers to make purchases in response to the advertised offer. Leveraging these drivers is essential to the success of any BOGO promotion.
The Impact of BOGOs on Market Research
When BOGOs Are Good: Research Will Be Terrific Insights
Research shows that price-conscious consumers who carefully tune in to offers and discounts are more likely to respond to BOGO promotions. For these consumers, the perception of getting double the value for the price of a single product is highly appealing and motivates them to make a purchase.
Preferring BOGOs Over Familiar Products
Studies indicate that customers prefer BOGOs over tried-and-true products that they regularly purchase and consider essential items. Unfamiliar or untested products typically do not benefit as much from BOGOs, as customers are hesitant to purchase an unknown product.
Bundles Boost Appeal
Bundles or bundles of complementary products in a BOGO offer, such as potato chips and sauce or shampoo and conditioner, increase the offer's appeal to customers. By combining two related products that are used together, the BOGO package becomes more useful and valuable to the customer. Studies show that these types of complementary bundles in BOGO offers garner greater interest and engagement from consumers.
Tips to Get the Most Out of BOGO Deals
To maximize the success of your BOGO (buy one, get one free) offers, consider several key strategies:
Choose products that people buy in bulk or share with others.
Choose products with a long shelf life that can be stored for future use.
Consider bundling complementary products to increase value for customers.
Market your BOGO offer through all available digital channels, such as in-store displays, social media, and more.
The duration of a BOGO event should be reasonably long, such as a weekend or 3 to 5 days.
Educate your staff about the promotion details so they can clearly communicate the offer and terms and conditions to customers.
Carefully analyze the results of the BOGO promotion to identify improvements for the next event. Then, review metrics such as total sales, customer feedback, marketing approach, and more.
In conclusion
As a marketer, the psychology behind consumer behavior is key to creating effective promotions. BOGO offers can lead to increased sales. Therefore, carefully consider how to position your offers to capitalize on the desire for value while avoiding the pitfalls of burnout. If you're launching a BOGO app for your customers, Stead Pace, with its expertise in market research and consumer behavior, will provide you with the analytics and insights you need to understand your audience and make data-driven decisions, increasing your chances of success and sustainability.
