The Reciprocity Trap: Why Favors And Freebies Make Us Spend More

Walk into a supermarket and someone hands you a free snack sample. Suddenly, you may feel a little guilty walking away without buying. Or think of the last time you got a ‘special discount’ on a product you weren’t planning to purchase. These small gestures while seemingly harmless, play on a powerful human instinct. This pressure we tend to feel to give back when something is given to us first is known as the reciprocity trap.

Table of contents

• Why freebies feel so hard to refuse
• How marketing uses reciprocity
• The risk of overspending
• How to stay aware

Why freebies feel so hard to refuse

When someone gives us something, we may feel an urge to return the favour, even if we didn’t ask for it. Psychologists call this effect reciprocity bias. This tendency is deeply rooted in human behaviour and social bonding. It helps maintain fairness in relationships, however in consumer markets, the same instinct may influence spending.

This may make free samples or surprise discounts feel irresistible. Even when we don’t truly need the product, the act of receiving something first may make us more likely to spend in return. This is the core of freebies marketing psychology.

Read Also: Spending Vs. Saving: A Psychological Money Guide

How marketing uses reciprocity

The finance and retail industries use this bias in clever ways. In India, when you open an account or sign up for a credit card, banks may often offer ‘welcome gifts’.

Credit cards themselves are advertised with multiple perks - free movie tickets, lounge access, or bonus reward points for shopping. These incentives can feel rewarding at first, making it easier for consumers to accept long-term spending commitments.

Free trials for streaming services or shopping apps work the same way. After you have received free value, cancelling may feel uncomfortable — as though you’re taking advantage of others, leading to many people continuing with a paid plan. This is a case of reciprocity bias finance at work.

Even small offers, like a temporary fee waiver or an extra cashback coupon, may nudge consumers toward spending more. Companies have known this for decades, which is why freebies and perks are a standard tool used for marketing worldwide.

Read Also: The Psychology of Smart and Intentional Spending

The risk of overspending

While discounts and free offers may seem like savings, they may lead to higher actual spending. You might walk into a store planning to spend ₹500, but leave with a ₹1,500 bill because some ‘buy one, get one’ deal felt too good to miss.

Studies in consumer behaviour show that these tactics increase short-term sales while potentially creating loyalty built more on perks than on real need. Over time, this may push households toward overspending and reduce their savings for essentials like investments or insurance.

This doesn’t mean freebies are harmful — sometimes they may be genuinely useful. The problem starts when impulse takes over and decisions are guided by offers instead of one’s actual needs.

How to stay aware

To avoid the reciprocity trap, pause before reacting. Asking these simple questions to yourself might help:

• Would I buy this if it wasn’t discounted?
• Is this free trial or perk adding real value, or just nudging me into spending more?
• Does this purchase fit into my budget or long-term goals?

By slowing down decisions, you can enjoy occasional perks without letting them control your spending.

Read Also: Why Spending Feels Good & Saving Feels Hard

Conclusion

Freebies and discounts may look like harmless bonuses, but they tap into a deep psychological instinct. Recognising the reciprocity trap may help you see these offers more clearly. In the end, it is not about rejecting generosity, but about making sure your financial actions reflect your needs — not just clever marketing strategies.

At Bajaj Finserv AMC, we recognise that emotions are the cornerstone of investor behaviour – not just for investors but for investment professionals too. That’s why, behavioural finance is at the heart of our investment philosophy, InQuBe, which combines the Information Edge, Quantitative Edge and Behavioural Edge. By understanding, tracking and monitoring market sentiments and our own investment biases, we seek to make mindful and strategic investment decisions. Get the Behavioural edge by investing with Bajaj Finserv AMC. Read more about InQuBehere.

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