Product Launch and Increase in Sales through Free Product-Premiums - Moderating Effects of Value and Product-Premium Fit in the Dual Mediation Model

The present study develops and tests based on the objectives of the dual-mediation-model an effectiveness model for free premiums. The proposed model is tested using different types of free premiums' characteristics (value, product-premium fit) as well as characteristics of consumers (smart- shopper-self-perception, free-gift-proneness). The results of the study show that high-value free premiums lead to better assessments of the promotional offer than low-value free premiums. The use of low-value free premiums should be avoided due to negative irradiation effects on the assessment of the promotional product. Consumers consider the value of a free premium as more important than its functional relation to the product. Additionally, a moderating role is empirically verified for both consumers' characteristics.