SlideShare a Scribd company logo
1 of 4
When Should You Provide Free
            Features with a Product?


Prepared by J. Scott Armstrong (details on him at jscottarmstrong.com).

Please inform Scott about errors and also make suggestions (armstrong@wharton.upenn.edu)

Scott has taken these slides from adprin.com, a site that he founded. That site contains interactive versions of these
slides, along with linked references, videos, and webcasts, all in PPT and PPTX format that you can download.
Wristwatch case
Which offer would have the highest sales, given that prices
 are the same:
     __ a) a wristwatch, or
     __ b) the same wristwatch that also shows time on both
     East Coast and West Coast of the U.S. ?
Why?
 See the next slide for the
 answer.




                        Adapted from AdPrin.com               2
Intentions for this high-involvement product were 46% for “a”
and “30% for “b.”
Consider bundling prices of features or complementary products
or services only if they are desirable to nearly all customers
(Persuasive Advertising p 56-7).



         Evidence
When one feature that is bundled seems
unnecessary to customers, they view the purchase
as wasteful.                  (Simonson, Carmon, and
O’Curry 1994).
To learn more, see AdPrin.com
Based on this exercise, write a small application step for
yourself, and set a deadline, preferably within one week. If you
are working with someone else, share your application plan and
the results of your application.


• For example, examine your bundled features for general
  appeal.




                         Adapted from AdPrin.com

More Related Content

Viewers also liked

Prisoners dilemma for ad spend
Prisoners dilemma for ad spend Prisoners dilemma for ad spend
Prisoners dilemma for ad spend
Scott Armstrong
 
Tastes 110829170308-phpapp02
Tastes 110829170308-phpapp02Tastes 110829170308-phpapp02
Tastes 110829170308-phpapp02
Scott Armstrong
 
Thereasonwhy 110829155159-phpapp02
Thereasonwhy 110829155159-phpapp02Thereasonwhy 110829155159-phpapp02
Thereasonwhy 110829155159-phpapp02
Scott Armstrong
 
Using groups to analyze data
Using groups to analyze data Using groups to analyze data
Using groups to analyze data
Scott Armstrong
 
When is repetition effective
When is repetition effectiveWhen is repetition effective
When is repetition effective
Scott Armstrong
 
Foot in-the-door application
Foot in-the-door applicationFoot in-the-door application
Foot in-the-door application
Scott Armstrong
 
Multi dimensional choices
Multi dimensional choicesMulti dimensional choices
Multi dimensional choices
Scott Armstrong
 
Specific or general benefts
Specific or general beneftsSpecific or general benefts
Specific or general benefts
Scott Armstrong
 
Virtual meetings for producing ideas
Virtual meetings for producing ideas Virtual meetings for producing ideas
Virtual meetings for producing ideas
Scott Armstrong
 
Catalogue going to digital
Catalogue   going to digitalCatalogue   going to digital
Catalogue going to digital
Naziha Hajla
 
Cm Spezial Lithuania
Cm Spezial LithuaniaCm Spezial Lithuania
Cm Spezial Lithuania
aloahe2
 

Viewers also liked (17)

Prisoners dilemma for ad spend
Prisoners dilemma for ad spend Prisoners dilemma for ad spend
Prisoners dilemma for ad spend
 
When scarcity works
When scarcity works When scarcity works
When scarcity works
 
Uppercase
UppercaseUppercase
Uppercase
 
Tastes 110829170308-phpapp02
Tastes 110829170308-phpapp02Tastes 110829170308-phpapp02
Tastes 110829170308-phpapp02
 
Thereasonwhy 110829155159-phpapp02
Thereasonwhy 110829155159-phpapp02Thereasonwhy 110829155159-phpapp02
Thereasonwhy 110829155159-phpapp02
 
Using groups to analyze data
Using groups to analyze data Using groups to analyze data
Using groups to analyze data
 
When is repetition effective
When is repetition effectiveWhen is repetition effective
When is repetition effective
 
Foot in-the-door application
Foot in-the-door applicationFoot in-the-door application
Foot in-the-door application
 
Multi dimensional choices
Multi dimensional choicesMulti dimensional choices
Multi dimensional choices
 
Specific or general benefts
Specific or general beneftsSpecific or general benefts
Specific or general benefts
 
Making choices
Making choices Making choices
Making choices
 
Virtual meetings for producing ideas
Virtual meetings for producing ideas Virtual meetings for producing ideas
Virtual meetings for producing ideas
 
Catalogue going to digital
Catalogue   going to digitalCatalogue   going to digital
Catalogue going to digital
 
Appel à proposition UE : Appui à la Société Civile en Tunisie
Appel à proposition UE : Appui à la Société Civile en Tunisie Appel à proposition UE : Appui à la Société Civile en Tunisie
Appel à proposition UE : Appui à la Société Civile en Tunisie
 
Notice doc 18334_2041350
Notice doc 18334_2041350Notice doc 18334_2041350
Notice doc 18334_2041350
 
Mémoire : "L’utilisation du marketing viral et sa portée sur la pe...
Mémoire : "L’utilisation du marketing viral et sa portée sur la pe...Mémoire : "L’utilisation du marketing viral et sa portée sur la pe...
Mémoire : "L’utilisation du marketing viral et sa portée sur la pe...
 
Cm Spezial Lithuania
Cm Spezial LithuaniaCm Spezial Lithuania
Cm Spezial Lithuania
 

Similar to Wristwatch

Useofmotion 110829171506-phpapp02
Useofmotion 110829171506-phpapp02Useofmotion 110829171506-phpapp02
Useofmotion 110829171506-phpapp02
Scott Armstrong
 
When should you advertise news
When should you advertise news When should you advertise news
When should you advertise news
Scott Armstrong
 
Specificorgeneralbenefts 110829151456-phpapp01
Specificorgeneralbenefts 110829151456-phpapp01Specificorgeneralbenefts 110829151456-phpapp01
Specificorgeneralbenefts 110829151456-phpapp01
Scott Armstrong
 
How can risk be used in advertising
How can risk be used in advertisingHow can risk be used in advertising
How can risk be used in advertising
Scott Armstrong
 
When to avoid use celebrities
When to avoid use celebritiesWhen to avoid use celebrities
When to avoid use celebrities
Scott Armstrong
 
Metaphors in advertising
Metaphors in advertisingMetaphors in advertising
Metaphors in advertising
Scott Armstrong
 
Anewpricingpolicy 110829171838-phpapp01
Anewpricingpolicy 110829171838-phpapp01Anewpricingpolicy 110829171838-phpapp01
Anewpricingpolicy 110829171838-phpapp01
Scott Armstrong
 
Contrastingads 110827201947-phpapp02
Contrastingads 110827201947-phpapp02Contrastingads 110827201947-phpapp02
Contrastingads 110827201947-phpapp02
Scott Armstrong
 
When to use attractive models
When to use attractive modelsWhen to use attractive models
When to use attractive models
Scott Armstrong
 
How to classify products for advertising
How to classify products for advertisingHow to classify products for advertising
How to classify products for advertising
Scott Armstrong
 
How much information for billboard ads
How much information for billboard adsHow much information for billboard ads
How much information for billboard ads
Scott Armstrong
 
Provokingthetargetmarket 110829174154-phpapp01
Provokingthetargetmarket 110829174154-phpapp01Provokingthetargetmarket 110829174154-phpapp01
Provokingthetargetmarket 110829174154-phpapp01
Scott Armstrong
 
When is repetition effective
When is repetition effective When is repetition effective
When is repetition effective
Scott Armstrong
 
Distractionforhigh involvementproducts-110829180121-phpapp01
Distractionforhigh involvementproducts-110829180121-phpapp01Distractionforhigh involvementproducts-110829180121-phpapp01
Distractionforhigh involvementproducts-110829180121-phpapp01
Scott Armstrong
 
How to identify slogans
How to identify slogans How to identify slogans
How to identify slogans
Scott Armstrong
 

Similar to Wristwatch (20)

Power of gifts
Power of gifts Power of gifts
Power of gifts
 
Useofmotion 110829171506-phpapp02
Useofmotion 110829171506-phpapp02Useofmotion 110829171506-phpapp02
Useofmotion 110829171506-phpapp02
 
When should you advertise news
When should you advertise news When should you advertise news
When should you advertise news
 
Specificorgeneralbenefts 110829151456-phpapp01
Specificorgeneralbenefts 110829151456-phpapp01Specificorgeneralbenefts 110829151456-phpapp01
Specificorgeneralbenefts 110829151456-phpapp01
 
How can risk be used in advertising
How can risk be used in advertisingHow can risk be used in advertising
How can risk be used in advertising
 
When to avoid use celebrities
When to avoid use celebritiesWhen to avoid use celebrities
When to avoid use celebrities
 
Metaphors in advertising
Metaphors in advertisingMetaphors in advertising
Metaphors in advertising
 
Anewpricingpolicy 110829171838-phpapp01
Anewpricingpolicy 110829171838-phpapp01Anewpricingpolicy 110829171838-phpapp01
Anewpricingpolicy 110829171838-phpapp01
 
Contrastingads 110827201947-phpapp02
Contrastingads 110827201947-phpapp02Contrastingads 110827201947-phpapp02
Contrastingads 110827201947-phpapp02
 
When to use attractive models
When to use attractive modelsWhen to use attractive models
When to use attractive models
 
How to use attack ads
How to use attack adsHow to use attack ads
How to use attack ads
 
How to classify products for advertising
How to classify products for advertisingHow to classify products for advertising
How to classify products for advertising
 
How much information for billboard ads
How much information for billboard adsHow much information for billboard ads
How much information for billboard ads
 
Tastes
Tastes Tastes
Tastes
 
Promises versus gifts
Promises versus giftsPromises versus gifts
Promises versus gifts
 
Provokingthetargetmarket 110829174154-phpapp01
Provokingthetargetmarket 110829174154-phpapp01Provokingthetargetmarket 110829174154-phpapp01
Provokingthetargetmarket 110829174154-phpapp01
 
Word choice
Word choiceWord choice
Word choice
 
When is repetition effective
When is repetition effective When is repetition effective
When is repetition effective
 
Distractionforhigh involvementproducts-110829180121-phpapp01
Distractionforhigh involvementproducts-110829180121-phpapp01Distractionforhigh involvementproducts-110829180121-phpapp01
Distractionforhigh involvementproducts-110829180121-phpapp01
 
How to identify slogans
How to identify slogans How to identify slogans
How to identify slogans
 

More from Scott Armstrong

When to use favorable images
When to use favorable images When to use favorable images
When to use favorable images
Scott Armstrong
 
When should an ad use direct conclusions
When should an ad use direct conclusionsWhen should an ad use direct conclusions
When should an ad use direct conclusions
Scott Armstrong
 
Virtual meetings for producing ideas
Virtual meetings for producing ideas Virtual meetings for producing ideas
Virtual meetings for producing ideas
Scott Armstrong
 
Using illustrations to persuade
Using illustrations to persuadeUsing illustrations to persuade
Using illustrations to persuade
Scott Armstrong
 
Using groups to analyze data
Using groups to analyze dataUsing groups to analyze data
Using groups to analyze data
Scott Armstrong
 
Using consumers to evaluate ads
Using consumers to evaluate adsUsing consumers to evaluate ads
Using consumers to evaluate ads
Scott Armstrong
 
Using consumers to evaluate ads
Using consumers to evaluate ads Using consumers to evaluate ads
Using consumers to evaluate ads
Scott Armstrong
 
Using consumers to evaluate ads
Using consumers to evaluate adsUsing consumers to evaluate ads
Using consumers to evaluate ads
Scott Armstrong
 
Short quiz on problem solving bat ball
Short quiz on problem solving bat ballShort quiz on problem solving bat ball
Short quiz on problem solving bat ball
Scott Armstrong
 

More from Scott Armstrong (12)

When to use favorable images
When to use favorable images When to use favorable images
When to use favorable images
 
When should an ad use direct conclusions
When should an ad use direct conclusionsWhen should an ad use direct conclusions
When should an ad use direct conclusions
 
Virtual meetings for producing ideas
Virtual meetings for producing ideas Virtual meetings for producing ideas
Virtual meetings for producing ideas
 
Using illustrations to persuade
Using illustrations to persuadeUsing illustrations to persuade
Using illustrations to persuade
 
Using groups to analyze data
Using groups to analyze dataUsing groups to analyze data
Using groups to analyze data
 
Using consumers to evaluate ads
Using consumers to evaluate adsUsing consumers to evaluate ads
Using consumers to evaluate ads
 
Using consumers to evaluate ads
Using consumers to evaluate ads Using consumers to evaluate ads
Using consumers to evaluate ads
 
Using consumers to evaluate ads
Using consumers to evaluate adsUsing consumers to evaluate ads
Using consumers to evaluate ads
 
Speaking speeds
Speaking speedsSpeaking speeds
Speaking speeds
 
Sounds of words
Sounds of wordsSounds of words
Sounds of words
 
Sounds of words
Sounds of wordsSounds of words
Sounds of words
 
Short quiz on problem solving bat ball
Short quiz on problem solving bat ballShort quiz on problem solving bat ball
Short quiz on problem solving bat ball
 

Recently uploaded

!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
daisycvs
 
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
Abortion pills in Kuwait Cytotec pills in Kuwait
 

Recently uploaded (20)

Falcon Invoice Discounting: Tailored Financial Wings
Falcon Invoice Discounting: Tailored Financial WingsFalcon Invoice Discounting: Tailored Financial Wings
Falcon Invoice Discounting: Tailored Financial Wings
 
joint cost.pptx COST ACCOUNTING Sixteenth Edition ...
joint cost.pptx  COST ACCOUNTING  Sixteenth Edition                          ...joint cost.pptx  COST ACCOUNTING  Sixteenth Edition                          ...
joint cost.pptx COST ACCOUNTING Sixteenth Edition ...
 
PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation Final
 
New 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck TemplateNew 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck Template
 
!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
 
Rice Manufacturers in India | Shree Krishna Exports
Rice Manufacturers in India | Shree Krishna ExportsRice Manufacturers in India | Shree Krishna Exports
Rice Manufacturers in India | Shree Krishna Exports
 
Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1
 
Arti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfArti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdf
 
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
 
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow ChallengesFalcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
 
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAIGetting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
 
Falcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investorsFalcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investors
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperity
 
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All TimeCall 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
 
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business GrowthFalcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business Growth
 
Lucknow Housewife Escorts by Sexy Bhabhi Service 8250092165
Lucknow Housewife Escorts  by Sexy Bhabhi Service 8250092165Lucknow Housewife Escorts  by Sexy Bhabhi Service 8250092165
Lucknow Housewife Escorts by Sexy Bhabhi Service 8250092165
 
Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...
Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...
Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...
 
CROSS CULTURAL NEGOTIATION BY PANMISEM NS
CROSS CULTURAL NEGOTIATION BY PANMISEM NSCROSS CULTURAL NEGOTIATION BY PANMISEM NS
CROSS CULTURAL NEGOTIATION BY PANMISEM NS
 
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
 

Wristwatch

  • 1. When Should You Provide Free Features with a Product? Prepared by J. Scott Armstrong (details on him at jscottarmstrong.com). Please inform Scott about errors and also make suggestions (armstrong@wharton.upenn.edu) Scott has taken these slides from adprin.com, a site that he founded. That site contains interactive versions of these slides, along with linked references, videos, and webcasts, all in PPT and PPTX format that you can download.
  • 2. Wristwatch case Which offer would have the highest sales, given that prices are the same: __ a) a wristwatch, or __ b) the same wristwatch that also shows time on both East Coast and West Coast of the U.S. ? Why? See the next slide for the answer. Adapted from AdPrin.com 2
  • 3. Intentions for this high-involvement product were 46% for “a” and “30% for “b.” Consider bundling prices of features or complementary products or services only if they are desirable to nearly all customers (Persuasive Advertising p 56-7). Evidence When one feature that is bundled seems unnecessary to customers, they view the purchase as wasteful. (Simonson, Carmon, and O’Curry 1994). To learn more, see AdPrin.com
  • 4. Based on this exercise, write a small application step for yourself, and set a deadline, preferably within one week. If you are working with someone else, share your application plan and the results of your application. • For example, examine your bundled features for general appeal. Adapted from AdPrin.com