The effect of free product premiums on attitudes and buying intention for durable goods: Moderating effects of value and product premium fit in the dual mediation model

Abstract

In the present study, tests have been developed and conducted based on the objectives of the dual mediation model, an effectiveness model designed for free premiums. The proposed model is tested using various free premium characteristics (value, product premium fit), as well as consumers' characteristics (smart shopper's self-perception, free-gift proneness). The results of the study show that the use of high-value free premiums leads to better assessments of the promotional offer than the use of low-value free premiums. The use of low-value free premiums should be avoided because of negative irradiation effects on assessment of the promotional product. Consumers consider the value of a free premium to be more important than its functional relation to the product. In addition, a moderating role is empirically verified for both consumer characteristics. © 2009 Gabler Verlag | GWV Fachverlage GmbH, Wiesbaden.