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The Power of Free

Posted By Mark Yokoyama | 09:36am | 1 comment

An interesting study mentioned in a recent New York Times article shows that, while most people like getting a deal, everybody loves free stuff. In the experiment, two tables were set up offering discounted chocolates: Lindor truffles for 15 cents and Hershey's Kisses for 1 cent. At this price, the Lindor truffles were chosen about 70% of the time. This would seem to make sense because the truffles are ostensibly a lot tastier and a great value at 15 cents.

Then, they dropped the price by one penny for each, and free Hershey's Kisses were chosen almost 70% of the time. This was true even when the tables were set up at the end of a cafeteria line and the 14 cent truffles could easily be added to the price of the meal.

The moral of the story? Cheap is good, but free is great!