If You're A Sucker For 'Free Gift With Purchase,' You Might Just Be A Sucker — Here's Why

Here’s what experts want you to know.

When your favorite brand or retailer offers a promotion, which would you rather have: 10% off or a free gift with your purchase?

Research suggests that in many instances, consumers prefer the freebie, whether it’s a free sample (think Sephora) or a branded item like a tote bag (Sezane is famous for them). Experts say there are several reasons why that is — and retailers have their own motives for offering gifts.

In many instances, shoppers view brands more favorably when they offer free gifts instead of discounts, and this can make customers more loyal, according to a 2024 survey by gifting company Snappy. It’s also a way for retailers to stand out and lure customers.

“Anybody can offer dollars off or cents off on a particular product, but not everybody is going to be able to or be creative enough to offer something else besides a discount,” explained Roger Beahm, professor of practice in marketing, and the director of the Retail Learning Labs at the Center for Analytics Impact at Wake Forest University.

However, it’s important for consumers to understand why retailers and brands offer free gifts, including what retailers get out of it and how customers benefit.