I never said people won't like the headphones. My original intent was to convey my opinion that the iTunes Gift Card is more suitable for this type of promotion due to how it can be used. I'm sorry if you were unable to see that. I will try harder next time.
in "promotion" value. this is really low on the heirarchy
Dollar amount (either discount or credit) > Gift Card > Free item.
why you might ask do I have a priority for 'sales'
A percentage discount actually keeps money in my pocket. This is ideal, as it means, as a consumer, I have free range of choice. Am I likely going to spend that saved money back to the company that gave me a discount? you BETCHA!, but I have the choice on what to buy, and when, and where.
secondly, Gift card falls behind. While it might seem similar to a cash discount, it isn't because it is a "promise" to spend more money. I have no cash in hand or in my pocket. What I have is a guarantee that I will have to return to your store. its not terrible. it means I have the ability to spend, however you've limited my choice as to where, (and sometimes when and for what). With Apple for example, $100 gift card, doesn't get you very far in store. a LOT of items are well over $100. That means, you're now limited me to spending more in the long run.
"free item". sure, everyone loves freebies. Free stuff is always better than nothing. cause well, 1 > 0. but, there's no guarantees that I find any value or utility to the free item. in the case of beats headphones for example. This is not a product I would use. The sound profile isn't what I like, the look / design and feel isn't what I'd wear around town. And while the "retail value of 199.99" might be true, REAL value here is that it's costing Apple a few dollars to provide. Ultimately, "freebie" such is this is more a marketing stunt than actual promotion.