The influence mechanism of free gift promotion on purchase intention of gifts: A moderated mediation model

Abstract

Previous research has examined the effects of free gift promotion on purchase intention of the main products, but its effects on purchase intention of products offered as gifts have been neglected. Based on the theory of transaction utility, this paper proposes a moderated mediation model, aiming to study the impact of free gift promotion on purchase intention of gifts and its internal mechanism. Two experiments are conducted to test the hypothesis. The results are presented as follows: Firstly, free gift promotion reduces purchase intention of gifts. Secondly, transaction utility of gifts has a complete mediating effect on the relationship between free gift promotion and purchase intention of gifts. Thirdly, brand value of main products moderates the negative impacts of free gift promotion on transaction utility of gift. Fourthly, brand value of main products also moderates the indirect impacts of free gift promotion on purchase intention of gifts via the mediating effect of transaction utility. This research not only enriches the literature of free gift promotion, but also provides managerial implications for marketing managers.