People like free things. They feel obligated to take items given for free as long as the items have some value. And if the free items are seen to have very large value, then people are willing to even drive to the source and wait in line just to get the free items.

American restaurant chain Denny’s has tapped this collective “free”-loving mentality in an almost extreme fashion. On Tuesday, it launched a national promotional campaign in which it gave away its popular $5.99 Grand Slam Breakfast Combo to all visitors of their shops. And the consumer response has been dramatic: the latest tally has shown that in the few days since beginning of the campaign, a total of two million people have visited their local Denny’s to claim the free Breakfast Combo.

Contrary to the enthusiasm of the consumers, branding and marketing experts are more skeptical about the move. Branding expert Rob Frankel states that giving away products can only decrease brand value, citing the example of Starbucks, which despite insisting on giving away free coffee on Wednesdays, is now facing financial troubles that is leading to planned closure of 900 stores. The willingness of free giveaway may cause consumers to doubt the quality of the products and may even lead to consumer aversion to paying for products that were given for free during the promotional campaigns.

Yet, it cannot be denied that the Denny’s promotional campaign has been successful in marketing the brand name. There is no shortage of people who have the knowledge of the campaign and it is certain that these people will not forgot the Denny’s brand for a long time to come. The potential increase in revenue from suddenly increased brand recognition may be able to offset the damage to the brand name, which may now be associated more with cheap and lower quality products..

The effectiveness of brand marketing based on free giveaways may actually depend on the frequency of the giveaway. The only reason people are lining up at Denny’s is that promotion may end immediately as the company deliberately kept the campaign end date a secret. “Short, Sudden, and Surprising” is perhaps the motto for drawing attention to the brand name using free giveaway campaigns.

Source: insidebayarea.com