Organizations often fall into the trap of offering free products or services with the intention to increase trial or goodwill. However, consumer psychology indicates that this approach can establish 'free' as a reference price, making it extremely challenging to impose charges later. Moreover, free offerings are often undervalued and can lead to overuse or abuse, creating hard-to-change consumer expectations that jeopardize long-term sustainability and profitability for the company.
"Many organizations mistakenly believe that offering free products or services will boost adoption and goodwill. However, this strategy often leads to hidden costs and unintended consequences."
"Once consumers perceive a product as being free, it's challenging to later introduce a price. This creates lasting expectations that can undermine a company's future revenue model."
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