The Psychology of Free: Why Do You Have A Pull Not To Pay?

The Psychology of Free is an article which looks at the psychology of free from different angles, causes, and uses by people and businesses.

Oh my! Oh my! What can I say? I love quality items. I really do! But I also love when I don’t have to pay for stuff. Hmmm… Is the latter assertion really honest. To be honest, I truly think I am one of those who prefer to pay for stuff. Aha! There it is. I am the type of person who likes discounted things, rather than Freebies. Some people think when an item, or service has high quality, it should come with a commensurate price tag. I must point out, even when things are discounted (my preference), free or bonuses, I also seriously consider the quality of the service, or item as well.

What do you think, or know about the Psychology of Free?

Let’s look at what freebies might mean for businesses…

What Does Free Stuff Mean for Businesses?

Most people love a bargain. The best are free things. The word Free attracts customers, on the one hand. On the other hand, Bargains and free things greatly increase the business bottom line. Specifically for businesses, the sale of your email addresses to companies takes no funds from you directly. But, businesses have the potential to make more sales. With the datafication of your information or data, these companies who buy your behavioral data such as your buying and surfing behaviors from establishments such as Google. have the potential of maximizing sales using analytics and predictions.

Let’s look at what Freebies might mean to Customers and Consumers…

Hidden Costs of Free and Discounted Stuff

Like I have always thought, there must be some hidden costs, or unknown compromises in Free Stuff. Often, free and discounted items, and services are just like a hook, or magnet to reel you in. Oh yah! I have experienced that with my XFINITY bundle – my internet and landline phone bundle. This company offered me a very reasonable price. Therefore, I decided to go with them. Rather than other options I had the opportunity to explore at the time. Guess what?

After one, or two years, these guys (i.e., XFINITY) increased their fee with more than $50. Can you imagine the gimmicks? You may be saying to yourself that I should cancel my subscription with XFINITY. Of course, I have thought of canceling my subscription. But, I am usually very busy. And when I have time to call them on Saturdays, I am on the phone forever. Yet, not able to speak to anyone except the AI Assistant. But, its all good. I am getting the service. So, I am paying for it.

Here is a video I recommend you watch…

This Is A Very Interesting Perspective on The Psychology of Free You Must Watch

What did you think of this Psychology of Free Video? Struck a Nerve?

The Psychology of Free

There are various reasons why we are drawn to giveaways, freebies and discounted stuff. Be it products, or services. We have a certain bias towards Free Stuff… Some of our bases towards Free are as follows:

The word Free is very Seductive and Captivating because there is an allure in potentially gaining something without any risk – in this case, not spending any money.
There is also the Bandwagon Effect when we rush to cue for things simply because others are doing the same. Especially, when its within our ingroup.
There is also the Anchoring Effect, which is when you are driven to make a purchase because of a discount, or drop in price. Acting on our emotions usually have less than favorable outcomes. Therefore, focusing more on the value of the item, or service rather than its drop in price might be more beneficial.

Woman peeping through a circle created by 4 of her fingers - fore fingers and thumbs.

My Personal Take On The Psychology of Free

Human behaviors are similar and dissimilar across races, ethnicities, cultures, tribes, families, and individuals. Now than ever before, many more people are drawn to the idea of getting stuff at a reduced price. I think the underlying factor here is the economic hardship that is globally felt at this time. Since after the COVID 19 pandemic lockdowns, its has been very difficult for many people to get back on their feet. Family businesses were lost – with no hope for resurrection. How about the crazy exchange rate fluctuations sweeping across different economies around the world? Can you believe that one US dollar is equivalent to about 1,200 Nigerian naira? While $100 (US) is equivalent to 1,188 Ghanaian cedi. The US also seems to be struggling because in comparison to the Pound and Europe, there is a huge difference in the strength of these currencies.

Here is a Currency Converter by WISE to observe the daily currency fluctuations around the world.

For me, our collective COVID 19 pandemic experiences highlighted a lot. It was and is still devastation to me to have witnessed the sheer number of people who lost their lives, as direct or indirect consequence of being infected by the COVID virus. My heart still reaches out to all those who were and are still being impacted by COVID related traumatic experiences. I know a handful of people who are still struggling with recovering their health years after they caught the COVID 19 infection. Well, logically this means these individuals have had to seek medical care over a long period of time. Then, depending on where in the world you live, Medical Bills can sometimes become HUGE. In the US where I live, I have chosen to practice Lifestyle and Natural Medicine above all other modalities.

Because medical bills in the US can pauperize you. I practice Hippocrates’s injunction “Let Food by thy Medicine and let Medicine be thy Food…” This is part of nature cure. Boy! This injunction appears to be so simple, and largely common sense. But, I guess common sense is not that common, after all. Right? I do not think many people on earth today pay heed to Hippocrates’s words of wisdom. I believe Hippocrates’s advice is the modus operandi across most, if not all, Traditional Medical Systems. And, since I’m now an adult, I have the liberty to choose the best way to care for my physical, mental, spiritual and vital bodies. Awesome, isn’t it?

During the COVID-19 pandemic, I was surprised there was hardly any emphasis on the strengthening of the immune system through lifestyle – stress management, enough sleep, real food and not nonfoods, positive outlook on life, positive relationships, connection with life and vital force from nature, and so forth. Rather, isolation and dissociation from others, and from nature was enforced, and fostered which is one sure way to create STRESS, which in turn invariably lowers the immune system.

You know, I really think if you live in the US, the tendency to want. or rather need free stuff might be heightened when compared to other places in the world due to the potential risks of having unhealthy lifestyles, and the scarcity mindset feeling perpetually unwell, promotes.

What are Some Consequences of Numerous and High Medical Bills

Not only did families lose their businesses, but employees lost their jobs across professions. And the result is that there is less money in people’s pockets. When people do not have access to basic funds needed to live life, it is kind of logical that Freebies, discounts, and giveaways become appealing.

The Psychology of Free – The Power Loss

Our brain can short circuit our Logical Brain (prefrontal cortex) leading to irrational decision making as stated by Dan Ariely in his book, “Predictably Irrationality,” I think and feel job instability, unemployment, food insecurity, financial insecurity, underemployment and in general hardship are the factors underlying the Power of Free, as well.

I am not in anyway saying we as people will be allergic to getting freebies if we were all financially stable. Oh no! That will likely never be the case. What I am saying is, it will be easier to be logical when deciding to get Free Services, or Products, or not when our Basic Needs are met consistently. I know many times I have not accepted free items after I made a donation. Or, I have not participated in a potluck provided by one of our medical vendors at my job because they didn’t have what I typically eat. Thankfully my basic needs are met daily. In my mind, our power of discernment is more aligned with what is necessary, and beneficial, in short, more rational when we have our basic needs met., daily.

Let’s look at a few instances when we think we are getting Discounts, or Free Stuff… Are we Really?

When is Free Not Free

There are numerous ways we can fall into the Psychology of Free Trap sooner than later. Or, we have been taken in by these discount and giveaway gimmicks, already. Especially during “Black Friday,” or “Cyber Monday” sales, where people sleep by the Best Buy’s, Wal Mart’s, or Target’s entrance doors, in the Cold or in the Heat. Some times these gimmicks are glaringly recognizable. Other times, these sales gimmicks are subtle. Let’s look at a list of some of these subtle sales gimmicks:

Most times with Free Trials, we are locked into either buying, or subscribing to something
I truly believe with Free Shipping, the cost of shipping is added to the cost of the item we bought. Or, you are required to buy a certain number of items before getting free shipping. In other words, whichever way, you are paying for the shipping.
As for Free Gifts by mail, I don’t know. The few times, I have received a free give by mail, it has been a solicitation. Meaning, I am being asked to donate to a cause.

There are more gimmicks to look at…

Oh my gosh! Please don’t even go to opening Free Bank Accounts. I have never fallen for those. But, I am guessing there are requirements underlying such offers. May be having a certain minimum amount of money in your account monthly is a likely requirement. Otherwise, you’d have to pay a large interest in some form. or way.
Then, we come to Free Gifts with Purchase. Well, I think the cost of the free gift in incorporated into the cost of Service, or Item you are buying. So, the gift is actually not free.

Although it seems there are hidden costs in Freebies, Giveaways, Discounted Goods and Services, there are a few things that are REALLY Free.

Let’s take a quick look…

True Freebies

When a seller, or marketer is making money without hurting you, your pocket, or your bank account, then you are good. A typical example will be to stream Movies, or Music for Free. In this case, the slight inconvenience will be to suffer through advertisements. That is fair! What do you think?

Ok, the next question is, how do we not fall into this Psychology of Free Trap?

How to Avoid Falling Into The Free Trap – Changing the Psychology of Free

Here is a quick list of ways to bulletproof yourself from falling into The Free Trap:

Guard your personal information jealously.
Calculate the actual cost of the product or service to be aware of what you are stepping into.
Use credit and debit cards with caution, especially online to avoid charges you were not aware of.
Read the fine prints of any documents, announcements and advertisements even when they say ‘Free.’
Calculate the cost of product and shipping to know true value of the deal. Then, decide what you want to do.

The Psychology of Free – The Power of Free in Business

How does the Psychology and Power of Free work in business. Well, in recent times, consumers have become more skeptical about giveaways, freebies and discounts due to excessive advertising by marketers, and businesses. People are beginning to think and feel that a Service may be Sub-Optimal, or Item Substandard because it is being offered for Free. People may wonder, what the hidden costs might be, How do I know? Well, before I delved into the Marketing World, I always questioned when things were offered to me Free of Charge. In fact, some times, if the item is needed, I preferred to pay a price for a similar item with a different Brand Name.

How Can Marketers and Businesses Deal With This Consumer Trend?

Businesses should continue to utilize the Freemium concept, but with value. What do I mean by this? I mean that the basic version of whatever you are offering your customers should have reasonably good value. Because not everyone can migrate to the premium version due to the hard times many people are now enduring, it will be strategic for the basic version to be useful.

As a business, when your services and products are free, there has to be a good reason why you are giving out freebies. Consumers are becoming more sophisticated either consciously, or unconsciously. Irrespective of the shift in consumer behavior, businesses and their marketers need Consumers or Customers. Customers are an integral part of any business operation, and success.

Conclusions

As a business owner or marketer, you want your free services or items to attract customers. Rather than push consumers into developing a resistance to your brand. Giving out free Good Quality products, either items or services improves customer satisfaction and engagement with your business. Similarly, giving away Quality and Useful free products, or Services is a way of getting prospective customers in the door, as well.

In more recent years, I have become more open to Free stuff as a tool used by others, and myself to communication intentions, messages, announcements, or make statements of some sort. Freebies play on our sentiments because our emotions are involved, which when it goes in the right direction could have a positive impact on the growth of your business, and the individuals who find the right deals. In my mind free stuff shouldn’t be used deceptively. For harmony to reign, there has to be a balance between giving and taking in all areas of our lives, including business.

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