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  • Bogo

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    Adityansu Suman
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    BOGO offers seem beneficial but can manipulate consumers' rational decision making. While BOGO sales allow companies to sell more products at the same profit margins and gain goodwill, the "free" item is often lower quality. The marginal utility of getting more for less spent drives consumer purchases, even if the deal isn't the best use of their money.

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    BOGO offers seem beneficial but can manipulate consumers' rational decision making. While BOGO sales allow companies to sell more products at the same profit margins and gain goodwill, the "free" item is often lower quality. The marginal utility of getting more for less spent drives consumer purchases, even if the deal isn't the best use of their money.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    4 views1 page

    Bogo

    Uploaded by

    Adityansu Suman
    BOGO offers seem beneficial but can manipulate consumers' rational decision making. While BOGO sales allow companies to sell more products at the same profit margins and gain goodwill, the "free" item is often lower quality. The marginal utility of getting more for less spent drives consumer purchases, even if the deal isn't the best use of their money.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    BOGO - Are they worth it?

    BOGO and the economics of

    People generally want to make rational decisions while purchasing something. The want to ideally
    spend less and get more and hence weigh potential joy against the cost they are incurring

    However, the word FREE manipulates people and it doesn’t let us think rationally.

    Companies like Myntra/Flipkart manipulate people into thinking they are getting the maximum
    benefits with their lucrative deals like BUY ONE GET ONE OR BUY 2 GET ONE

    These tactics sell more product and they get the same profit margins along with consumer
    goodwill

    Various studies have shown that the inventory being utilized in BOGO is generally low quality but
    the Marginal utility drives the consumer

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