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How Free Are Store Freebies
Female: That feels good right at the temples.
Jill Schlesinger: At Clarins makeup counters across the country, anyone can stop by for a free facial, other freebies, athletic retailer Lululemon offers free yoga classes at each of its 114 stores target sponsors free admission to 2200 cultural events throughout the year. You can download free college lectures from MIT or get a free ice cream cone from Cold Stone Creamery on your birthday.
Stanford professor Baba Shiv says, consumers have a hard time saying no to free and companies know it.
Baba Shiv: We have done a lot of research in our own lab but suggest that walk free activates is this emotion of wanting this urge to get it right now. Firms are doing this because they want to increase demand and then they want consumers to buy their product.
Jill Schlesinger: Most people do make a purchase following their free facials according to Clarins, CEO Jonathan Zrihen.
Jonathan Zrihen: In average the consumer buy two to three products at the facials.
Jill Schlesinger: Research shows that consumers who take advantage of a company’s free offer will wind up spending money there.
Baba Shiv: And that is why this notion of guilt comes in. She feels guilty because someone has offered her a service for free and she feels obligated to do something in return.
Jill Schlesinger: So the next time you find yourself feeling like this--
Female: This is so good I mean really for free. This is unbelievable.
Jill Schlesinger: Remember that freebie may windup costing you more than you think. For CBS News, I’m Jill Schlesinger, CBSMoneyWatch.com.
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