Link: https://blogs.ubc.ca/janienguyen/2011/10/24/its-free-but-whats-the-catch/

I think “freebies” is a really interesting topic because we all know that companies are not charity and they want profit. The reason that why companies give free products away is, for a new product, is a fairly good strategy since people do not give a new product a chance. After people try it, if it is good, then people will purchase it and tell their friends (good word of mouth). Even if it is bad, the company will get the feedback from people who get the free product so the company can stop further production and avoid cost. The disadvantage of giving free things away, as you mentioned, is that it might attract many unprofitable customers.