JOURNAL ARTICLE

The Risks of Offering "Free" Goods and Services.

  • Published In: Harvard Business Review Digital Articles, 2025. P. 1 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Firasta-Vastani, Saloni 3 of 3

Abstract

The article discusses the risks associated with offering goods and services for free, highlighting how this practice can create long-term challenges for organizations. Research in consumer psychology indicates that free offerings can lead to undervaluation and unrealistic expectations, making it difficult to implement charges later. The article provides examples, such as Al-Azhar Park in Cairo, which thrived after charging a modest entrance fee, and Netflix's failed attempt to separate its DVD and streaming services, illustrating the importance of establishing perceived value. Strategies for mitigating the downsides of free offerings include communicating value, using strategic pricing information, and creating scarcity to reinforce worth. [Extracted from the article]

Additional Information

  • Source:Harvard Business Review Digital Articles. 2025/06, p1
  • Document Type:Article
  • Subject Area:Economics
  • Publication Date:2025
  • Accession Number:186325204
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