Buy one, get one free

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File:Buy one, get one free ^ - geograph.org.uk - 153952.jpg
Sign board advertising a "buy one get one free" offer on flowers

"Buy one, get one free" or "two for the price of one" is a common form of sales promotion.

Marketing strategy

The economist Alex Tabarrok has argued, that the success of this promotion lies in the fact that consumers value the first unit significantly more than the second one. So compared to a seemingly equivalent "Half price off" promotion, they may only buy one item at half price, because the value they attach to the second unit is lower than even the discounted price.[1]

History

The concept of "buy one, get one free" was devised in the 18th century by retail entrepreneur Josiah Wedgwood.[2][3] This technique is commonly known in the marketing industry by the acronym BOGOF, or simply BOGO.[4][5]

Criticism

Two-for-one promotions in the food industry have been criticized as contributing to food waste. Because many foods under such offers have short shelf lives, customers are more likely to pass the products' use by date.[6][7][8][9]

References

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  1. Buy one get one free, from Marginal Revolution. Retrieved 2008-01-05.
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  6. Shop wisely: Better habits can prevent waste of precious resource
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