Organizations often fall into the pricing trap. To increase adoption, encourage trial, or show good intentions, it provides free products or services. But research in consumer psychology and behavioral economics shows that “free” comes at high and hidden costs. Once customers absorb “free” the reference price, it becomes so difficult– Sometimes it is impossible – to charge later. Worse, free offers often Piece with less than its value, excessive use, or the aggressor. It creates hard -to -relax expectations and threaten long -term sustainability.
