Free effect in bundled offering: The positive emotional effect of free offers and the moderator role of framing effect

Drawing on Prospect Theory and framing literature, this research investigates the psychological and emotional effects of “free” framing in bundled pricing within hospitality settings. Across ten experimental studies (N = 2458), we demonstrate that consumers prefer bundled products that include a free component over economically equivalent offers without the “free” label. Specifically, we show that this preference is driven by positive emotional responses uniquely triggered by the word “free”—responses not replicated by equivalent “$0” or non-explicit framings. Furthermore, we identify key boundary conditions: the effect of “free” is strongest when the term is explicitly used and when it is applied to lower-tier, price-sensitive options and confirm that emotional responses underlie the observed effect. These findings contribute to the pricing and hospitality literature by clarifying how free framing enhances perceived value and consumer choice. Practically, marketers should emphasize “free” language to increase bundle appeal, particularly in competitive market segments.