In the past few years there has been a rise in the trend of gift cards. Consumers who are either in a rush or just can’t think of what to get someone as a gift are opting for gift cards. Through what we have learned in class and with secondary research I have analyzed the effects of how gift cards affect the consumer consumption process and consumer decision making. I also looked into how the consumption process and post consumption differed from using a gift card as a form of payment to using other means such as cash.
When looking at the consumption process of a gift card there are often two consumers and therefor two consumption processes. The first consumer is the one who is purchasing the gift card to a person. The second is the consumer who received the gift card as a gift, and now has to exchange it for a product to create value for them.
For the person who is buying the gift card to give to someone else they often do it because it can be difficult to find a gift to give to someone else. When we spend money on ourselves we can use either compensatory or non-compensatory models to aid us when trying to evaluate and choose a specific product. When buying a gift we often do not know all the criteria the person we are buying the gift for has for a selection of products. Instead of just wasting money on something somebody may not want consumers can opt out of this decision making process and just buy a gift card. By doing this it is apparent that consumers will lessen their cognitive dissonance and have less feelings of doubt on the decision of the gift they choose was the right one or not.
Although the person giving the gift card may experience less cognitive dissonance, the person receiving the gift card may be dis...
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...shelves with it. Second gift cards have received a very small negative feeling with regards to wasting plastic. Extremely “green” people wonder why you should use a gift card when you are just going to throw it away when the value is at zero. As you can see these disadvantages are very minute and pose no threat to the retail industry for using gift cards.
From my analysis you can see that the conception process is different for gift card users. They may feel little dissonance and alter the consumption process when compared to people who are purchasing with cash. From a business standpoint they are great things. They drive consumers to their store who often impulse buy discretionary items. Overall gift cards tend to be good for all parties and I predict the trend to continue to grow and evolve into more electronic forms of gift cards such as on cell phones.
However, as may be expected from our modern society, the custom of giving gifts quickly turned into the practice of exchanging them. If one gives gifts to loved ones at Christmas, the reasoning goes, then those who do not receive gifts from a person are obviously not loved by him/her. So each individual now is required to give a gift to all of his/her friends, or risk communicating to them that s/he no longer loves them -- or perhaps never did! Also, there arises another problem when someone gets a gift from a person to whom they did not give one. The logic here is that the one who gave the gift obviously has a greater love for or places a greater value on the friendship than the one who did not. A decidedly awkward situation arises from this, one can imagine.
I fully understand we humans have the tendency to purchase on items that we are attracted to. However, that doesn’t mean we cannot overcome our persuasive urges to spend. Humans must think righteous and conserve.
Cooper, Joel. Cognitive Dissonance: Fifty Years of a Classic Theory. Los Angeles: SAGE, 2007. Print
In 1995, Target began offering credit which was known as the Target Guest Card (Target Through the Years). This was a big step for the company in establishing customer loyalty and relations through the use of technology. By 2004, the cards were renamed REDcards and were able to create data portfolios to help Target figure out product demands and create different routes to satisfy their customers even more (Target through the Years). This was a huge step for Target and their use of technology to better their
Credit cards are something that are almost needed in everyday life now, as most dont have the money available to purchase a car or house and so need credit, thus needing credit cards to help build that credit. Those cards are hard to handle, and receiving applications in the mail daily, and commercials appearing on television don’t seem to make the struggle of staying away any easier. This starts to spark an interest. So people begin to think, "I think I 'm responsible enough to get a credit card, I 'll only use it for emergencies." Then the application process begins and it may take a couple times to finally be approved for one. This only makes it worse, of course, because realizing how long a credit card wasn’t applicable to life, but now
worse. Since these people make very little money, their gifts come more from the heart
As a result, the customer will most likely come back to the store they are already familiar with. To this extent, the retailers can also send out gift cards, reward cards to customers rewarding them for loyalty to the store. Some people think it is manipulating people into buying goods, but it is not true. The customer always has to choose whether to buy or not. No one is forcing them to buy anything.
The Studies of gift-giving have developed from a psychological, sociological and anthropological perspective and the discipline of each perspective has established a particular framework for studying gift-giving. The psychological approach for instance focuses on gift giving as an opportunity to express the giver's perception of both him/herself
We live in a culture where people are expected to give to others gifts of gratitude and expressions of love. Sometimes these gifts are accepted for what they are worth and other times they are not. We use that which others give us based on several factors. Among them are whether we perceive the gift as valuable, whether we can practically use the gift, or whether the gift is given earnestly and for the right reasons. Because of this there is not one explanation why certain attitudes about gifts exist. We should, however, understand that it is not for us to realize why a gift is given, but rather that someone thinks enough of us to give a gift in the first place. It is certain that if gifts are not accepted and used in a prudent and expeditious manner, then the gifts that are received will deteriorate or whither completely away.
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
Are they tempting fate by inviting the potential for problems? After all, one unexpected expense, and the credit card user won’t clear his/her balance…and before you know it…credit card debt.
In today’s world, a Smartphone has become essential part of daily life. There was a time when transactions happened through barter system. Thereafter was the emergence of notes and coins. And presently, the world is moving towards the “Digital Wallet”. Due to technology, mobile users can use their Smartphone to make money transactions or payments by using applications installed in their phone. Digital wallet system is an essential part of electronic commerce. E-commerce provides the capability of trading on the internet. A digital wallet is a virtual service used as a substitute for physical cash. The present study tries to study the various factors that can affect a consumer’s
Customers are quick to fall into the category of “belonging” found in Maslow’s hierarchy of needs. They feel as if in order to belong or to feel loved and respected by others they must try to attain what everyone else has or wants. This is especially true during the holiday season when people feel that what they buy reflects how they feel about the people they buy presents for. If you feel that you must purchase a certain present that you know will be out of stock and hard to find, you are better off shopping online or by mail. Shopping online and by mail is becoming the new wave of shopping and it is a smart, convenient, and timesaving process.
Whether these items are necessities or even a splurge item. Trips to the store are made for a reason and when you go there will always be the impulse buyer, the list maker, and the bargain hunter. Each type has a different method and these methods are being used to shop, and they are our personal ways of shopping. You will come across many different types of shoppers. You will now realize what kind of shoppers these people you encounter are. Every shopper has a different personality when it comes to shopping as well. Some can be good as well as bad. Shopping is a fun thing regardless. Almost every individual enjoys it. We all have had something we 've been excited to buy. These kinds of shoppers can be found anywhere products are being