This text explores the phenomenon of how the concept of “free” affects consumer behavior. It highlights incidents of violence that occurred over free samples at Costco, indicating the strong passion people have for freebies. The text explains that this behavior is rooted in behavioral psychology, where people tend to make irrational decisions when something is offered for free. The author discusses three areas where the impact of “free” can be observed: grocery store samples, shipping, and online content. The text emphasizes the “positive glow” associated with not having to pay and how it influences consumer choices. Additionally, it examines the popularity of free shipping and the financial implications it can have on decision-making. The text also delves into the effectiveness of free samples in driving sales and the reasons behind it. Finally, it explores the concept of free content in the media industry and the different perceptions people have regarding paying for news. Overall, the text highlights the irrational behavior associated with free offers and its influence on consumer decision-making.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Free samples incite violence | Behavioral change | Less violence, increased understanding of consumer behavior | Behavioral psychology |
| “Free” affects consumer behavior | Behavioral change | Consumers make irrational decisions when something is free | Positive feeling of not having to pay |
| Free shipping influences online purchases | Behavioral change | More online purchases, preference for free shipping | Difficulty understanding shipping costs |
| Free samples increase product sales | Behavioral change | Increased product sales, higher average sales in the same category | Familiarity with the product, feeling of reciprocation |
| Free content does not guarantee subscriptions | Behavioral change | Reluctance to pay for online content, preference for free options | Perceived high cost, ingrained ad-based model |