Most previous studies have shown that free gifts positively increase promoted product sales. However, will any characteristic of the gift hurt the promoted product, and how does it happen? This study has two purposes. First, the study sheds light on the brand preference of the promoted product being hurt in a gift promotion setting and examines the causes-gift quality and perceived brand fit. Second, a mental mechanism of the negative effect of a gift quality on the promoted brand preference was explored by applying perspectives of Expectancy-Disconfirmation Theory (EDT) and the Halo effect. Two experimental studies were developed. Study 1 confirmed that the lower gift quality, but not brand unfit, hurt the brand preference of the promoted product. Study 2 further examined its mental process and found two mediators between gift quality and promoted brand preference (i.e., expectancy disconfirmation of gift quality and preference toward the gift promotion mix). It supports the EDT and the Halo effect being applied to explain the mental mechanism.
Relation:
IUP Journal of Marketing Management 23(3), p.91-109
