Gift Giving

Gift giving is about emotionally connecting the giver and the receiver with the use of a tangible (or possibly an intangible) object. Research carried out by psychologists and marketers, among others, have found that giving gifts is a surprisingly complex and important part of human interaction, helping to define relationships and strengthen bonds with family and friends (The New York Times).

Gift Giving can be viewed as a ritual involving the selection, presentation, acceptance and interpretation of a gift, which can be accentuated during every holiday or special occasion. It can be interpreted as a symbolic exchange where the giver is motivated by acknowledging the social bonds between people. The situation in which giving gifts take place can be influenced by certain cultures, occasions or ceremonies whether they are personal or on a professional basis (Solomon et al).

The business of buying gifts is seen as the 'ultimate in emotional consumerism', as it is all about an emotional connection between the giver and the recipient. 'Whenever consumer shopping behaviour is driven by emotion, the shopper's goal is to buy a thing to achieve a special feeling, enhance an emotional experience or deepen an emotional reaction.' It is seen to be an action that will strengthen the emotional connection between individuals (Admap article). The giving of gifts allows retailers and marketers to target two individuals at one time, with the constant desire to establish effective relationships and positive experiences. Helpful retailers and clear, concise marketing will guide the giver through the difficulties of the decision making process encouraging them to become a repeat gift giver and also to return to the particular store many times after. 'Gifting is an emotionally charged chance for retailers and manufacturers to connect directly with two target markets at once which gives gifting its opportunity for exponential marketing impact' (Admap).

The Buyer Decision Process

Kotler et al describe the buyer decision process in a 5-stage model: need recognition - the first stage of the buyer decision process in which the consumer recognises a problem or need. Information search is the second stage in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search. The third stage of the decision process involves the evaluation of alternatives where the consumer uses information to evaluate alternative brands in the choice set. The fourth stage focuses on the purchase decision in which the consumer actually buys the product, and the fifth and final stage is known as the post-purchase behaviour in which the consumer will take further action after purchase based on their satisfaction or dissatisfaction. This process becomes increasingly heightened during the purchase or a gift creating a certain level of high involvement. Although the gift may not be highly expensive in comparison to a computer or a laptop, there is a risk concerning the desired emotional response or connection created by the gift between the giver and receiver.

Involvement can be defined as 'a person's perceived relevance of the object based on their inherent needs, values and interests' (Solomon).The level on involvement required by the consumer when making a purchase decision can be classed as high or low. Low involvement products, such as day to day, routine cleaning products or household goods, require little thought and time during purchase, they become more of a habitual purchase. Cars, for example, follow a different lead when it comes to a purchase. There are many factors to weigh up before making a final decision. These could include price, performance of the vehicle and family considerations.

Gift giving has a huge impact on marketing in the way that 'there is no longer a single gifting season'. This is an especially important trend for retailers who typically do a very good job serving gift shoppers for those predictable holidays --Christmas, Mother's Day. Valentine's Day and Father's Day are the top ranked gifting holidays -- but they need to develop strategies to make their stores a better destination for gift shopping all 365-days a year' (Unity Marketing). The experience established within the store by the giver influences their choice and ultimate purchase decision of a gift. It they encounter a negative experience, it is likely that they will not return to the shop depending on the severity of the incident that occurred. However, if the experience was of a positive nature the consumer is highly likely to return and also spread their experiences by word of mouth to friends and family who would then be influenced to make a visit. The purchase of a gift is one that involves a great deal of thought, a decision that requires many questions to be answered, for example: what would the recipient like? What occasion is the gift for? What type of relationship do i have with the recipient? The role of the retailer is to create the maximum pleasure out of the visit that will be strong enough to influence the recipient as well as the giver. The smallest finishing touches can be key to creating this level of impact on the consumer with the use of special gift-wrapping services or complementary scented products/decoration as finishing touches to the service.

'Store choice for gifts is controlled by the left brain, but gift selection is right-brain dominated' (Admap).