February 22, 2005

What is it?

What is it that compels me to buy a Pepsi for $1.00, one that I don’t need, and really don’t even want, in hopes that I might win a free iTunes download. A download that costs $.99.

Is there some logic here that I can’t find?

Posted by Frinklin at February 22, 2005 07:28 PM

If you want me to put on my Economist Hat, I can explain the lure of something for nothing and why that causes you to increase the relative valuation of something that you've "won" as opposed to something you've bought, and explain why this tends to create unusual incentives in the marketplace, but I'd just bore the hell out of you without saying anything important. I do this a lot (see also: my blog).

So I'll just give you the short version: No, there's no logic. You're screwed up, but in the same way as most people, so don't worry about it.

Posted by: Mediocre Fred at February 22, 2005 08:14 PM

You're a marketer's dream. the consumer who buys something they don't need or want just for the promotion.

I am the other marketers dream - the person who will switch from his regular afternoon soda to the one with the promotion. I was going to spend that dollar anyway but with their competitor. Now they get the buck and I've collected five free tunes.

As soon as the promo ends it's back to Dr, Pepper though, and I was already an iTunes customer so in the end they all get little benefit from my consumption.

Of course multiply yours and my behavior by a few million and the promotion starts to pay off.

Posted by: Stephen Macklin at March 3, 2005 02:59 PM
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