Does \u27Free-Sampling\u27 Enhance the Value of Public Goods?

Abstract

This study investigates whether a \u27free sampling\u27 marketing strategy induces an enduring WTP premium effect for public goods. Using data from a unique field experiment involving curbside recycling, we find that the premium effect associated with providing non-participating households a brief opportunity to participate in a curbside recycling program for free is relatively small and not enduring. It may therefore not be cost effective to offer a free-sampling participation incentive for this type (or similar types) of local public good(s)

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