Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats a Freebie as a Gift
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore the 'free gift effect' — why receiving something for free, even when it's part of a promotion, triggers a sense of obligation and gratitude that changes how we evaluate the giver. They dig into a 2019 study from the Journal of Marketing that found free gifts increase purchase intent by 23 percent, even when the gift's value is negligible, and discuss how this effect powers everything from cosmetics samples to grocery store bonuses. The hosts also unpack the psychological mechanism: the gift…
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