First Choice? Last Resort? Social Risks and Gift Card Selection

Austin, Caroline Graham; Huang, Lei

doi:10.2753/mtp1069-6679200304

Cited by 13 publications

(7 citation statements)

References 32 publications

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“…Indeed, receivers often view price as a sign of commitment and willingness to invest in the relationship (Camerer 1988; Cheal 1987), and price is a factor that significantly influences the price of reciprocated gifts (Pieters and Robben 1998). Furthermore, social norms about relationships often force givers to buy more expensive gifts to avoid looking cheap (Austin and Huang 2012; Goodwin, Smith, and Spiggle 1990), which may trigger a prevention focus goal to avoid negative impressions (Ashworth, Darke, and Schaller 2005). Second, price may signal the popularity and quality of a product.…”

Section: A Conceptual Model Of Gift Choicementioning

confidence: 99%

Modeling Gift Choice: The Effect of Uncertainty on Price Sensitivity

Wang

Lans

2018

Journal of Marketing Research

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Gift giving generates high revenues for retailers. It is also marked with significant welfare, or deadweight, loss in that givers tend to pay more than the receivers’ valuation. Previous research has attributed this discrepancy to givers’ inaccurate predictions of the receivers’ preferences. This research demonstrates that reduced price sensitivity is another important source of the deadweight loss: givers use gift prices to signal the importance of their relationship with the receiver. In order to demonstrate this mechanism, the authors develop a new Bayesian gift-choice model that captures both preference predictions as well as the signaling value of price. The model is estimated on two choice-based conjoint studies for gift giving that allow for the manipulation of the giver's uncertainty about the receiver's preferences. Both studies show the strong signaling value of price, especially when givers are uncertain about receivers’ preferences. Decomposition of the deadweight loss shows that the signaling value of price is an important source of welfare loss, especially in markets with heterogeneous prices. These findings have key implications for the gift industry.

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Section: A Conceptual Model Of Gift Choicementioning

confidence: 99%

Modeling Gift Choice: The Effect of Uncertainty on Price Sensitivity

Wang

Lans

2018

Journal of Marketing Research

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“…Consequently, the supplier may increase the optimal wholesale price. 4. Uniformly distributed demand.…”

Section: Unredeemed Gift Cards Balances Become the State's Property (mentioning

confidence: 99%

“…Due to the fact that gift givers cannot know well the preference of gift receivers, the selected gifts may not be the ones those gift receivers really like and even may be the ones receivers already have. These unmatched behaviors between gift givers and gift receivers can lead to social risk (Austin and Huang [4]). To avoid wastage of the 350 JINGMING PAN, WENQING SHI AND XIAOWO TANG received gifts, gift receivers can return gift products where gift givers bought them.…”

mentioning

confidence: 99%

Pricing and ordering strategies of supply chain with selling gift cards

Pan¹,

Shi²,

Xiao-wo³

2018

Journal of Industrial &Amp; Management Optimization

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Gift cards is frequently used to replace traditional gift cash and gift products, especially when gift givers do not know gift receivers' performances. Basing on this phenomenon, we analyze the supplier's and the retailer's strategies with selling gift cards. First, we develop a Stackelberg model without selling gift cards. Next, we develop two models with selling gift cards when unredeemed gift cards balances become the retailer's property and the state's property, respectively. We present the optimal solutions and exam the impacts of parameters on the optimal decisions and the supply chain performance. When the retailer sells gift cards, the optimal order quantity is smaller than that without selling gift cards. The optimal wholesale price with selling gift cards is related to the treatment of unredeemed gift card balances. When unredeemed gift cards balances become the retailer's property, the wholesale price is lower than that without selling gift cards. However, when unredeemed gift cards balances become the state's property, the wholesale price is lower than that without selling gift cards in some conditions. And with selling gift cards, the optimal expected profits of retailer and supply chain are better off, but the optimal expected profit of supplier is worse off.

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“…Financially, Christmas gifts may account for 3.6% of a household's spending (Davies, Whelan, Foley, & Walsh, ). Sales on wedding gift registries reached $19 billion in a single year (Bradford & Sherry, ) and the gift card industry now exceeds $100 billion annually (Austin & Huang, ).…”

mentioning

confidence: 99%

“…One of the functions of gifts is to symbolize the relationship (Areni, Kiecker, & Palan, ; Sherry, ); indeed, Belk, Wallendorf, and Sherry () contend this symbolic manifestation of the relationship sanctifies the gift. There is thus a large measure of social risk in giving and receiving gifts (Austin & Huang, ; Belk & Coon, ; Otnes, Lowrey, & Kim, ); indeed, the risk and reward occasioned by the gift's procurement, presentation, and reception extends to one's entire social network (Giesler, ; Lowrey, Otnes, & Ruth, ).…”

mentioning

confidence: 99%

An Examination of Emotional Information Management in Gift Giving and Receipt

Taute

Sierra²

2015

Psychology and Marketing

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Gift giving is prominent in marketplace exchanges and has robust emotional implications for both the giver and recipient. For example, prior to and during the selection of a gift, the giver endures positive and negative emotions, as he/she grapples with selecting the perfect gift, and ponders if the recipient will actually cherish the purchased item. During this dynamic exchange process, emotional recognition, management of emotions, emotional empathy, and anticipated elation are oft experienced by both the giver and recipient. However, research examining such emotions quantitatively in a gifting context is scant and models of these faculties in the gift‐giving milieu are nonexistent. To help fill this research fissure, four studies are developed; they, in general, investigate determinants of feelings linked with the gestation, prestation, and reformulation stages of the gift‐giving event. Specifically, Study 1 (giver's perspective) and Study 2 (receiver's perspective) reveal a mediation void in the models tested. Heeding these results, Study 3 (gift given) and Study 4 (gift received) introduce anticipated elation as a key factor between the aforementioned emotive factors and the emotional responses inherent in the gift‐giving stages, among others. Managerial implications and future research directions are offered.

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First Choice? Last Resort? Social Risks and Gift Card Selection

Cited by 13 publications

References 32 publications

Modeling Gift Choice: The Effect of Uncertainty on Price Sensitivity

Modeling Gift Choice: The Effect of Uncertainty on Price Sensitivity

Pricing and ordering strategies of supply chain with selling gift cards

An Examination of Emotional Information Management in Gift Giving and Receipt

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