Holiday Gift Card Analysis | | | |

Gift cards are becoming a popular alternative to traditional physical gift giving. They offer the gift giver the ability to provide an option that not only satisfies their desire to donate to another person’s wellbeing, but also as a way of providing the recipient with the ability to choose their own gift. Christmas is an especially opportune time to increase the marketing of gift cards by retailers. With the knowledge that many people will be shopping for gifts; there is an abundance of opportunities to market the low-involvement purchase. Retailers use motivated reasoning, such as time and best-fit gifts, to convince consumers that gift cards are the perfect alternative to a traditional gift. Statistics show that gift card purchases are on the rise. Retailers realize that consumer decision processes concerning gift cards can be very beneficial. Many consumers tend to spend more than the actual amount on the card. They also benefit the retailers by being available in a multitude of mediums and locations. Though, there are also many detriments to gift cards. They often are unused and must be accounted for as unearned revenue rather than profits. It seems that gift cards offer the least amount of involvement when compared to other gift options. The approach-avoidance conflict consists of wanting to give a gift, but not wanting to exert the time/energy that is required to obtain it. The felt involvement required to select a gift can be difficult for many consumers. Some consumers do not have much interest in selecting gifts for others. Gift cards reduce the situational involvement of “what to get”, and instead replaces it with “where to get it from”.
Gift card sales have increased every year. In 2007 only 62% of people polled planned to give a gift card during the Christmas holiday season. (Shader, 2011) This statistic