DISQUS

Funny about Money · 11 months ago

What an interesting study! I'd have thought that GC's would lead you to spend more because you would think of the money as a windfall--easy come, easy go. And you would think of it as selecting a gift that someone else would have given you anyway, free, so tossing in an extra few bucks of your own would mean that you could get something you couldn't otherwise afford. That theory, however, is belied by the experiment comparing what people will do with "free" cash vs. a "free" gift card.

Amazing!

How do you feel about receiving objects as gifts? Having been brought up during the Cretaceous period, I tend to feel gifts of cash and "gift cards" are tacky and rude. But on the other hand, when the person has everything he needs, who am I to decide what kind of aftershave he should have? Maybe it's less arrogant to give the friend or relative money...or...even nothing? The gift of not feeling like he has to reciprocate?

mengmeng wang, intern · 11 months ago

To me, gift cards say, "we're friends, but I don't really know anything about you, so here's some money instead." I don't think I would ever give cold hard cash to any of my friends as a gift, but in China, red envelopes are the norm for holidays, weddings, birthdays, and other special occasions, and it's totally okay to give money as a gift (and I'm totally okay with getting it).

That being said, I wholeheartedly believe in giving gifts, as long as there's thought behind it. Like Matt said, it should be something that makes the gift receiver go, "wow, you're ridiculously awesome." So if that aftershave you're talking about will have that effect, then why not?

Lizz · 10 months ago

Interesting... I love gift cards.

If given cash I'm likely to spend it on bills or other necessities. For my birthday I like having money I can spend at my favorite stores without feeling guilty.

With my couponing skills I can usually easily get %40-%50 more value out of the card. In other words if I get a card for $100 I can often get up to $150 worth of merchandise out of it. I could do this with cash as well, but I get a little icky when someone gives me a (insert object here) from those stores, knowing that they likely paid too much for it.

I love to give gift cards to several of my friends. I know them quite well which is why I know that giving them the freedom to enjoy an overpriced coffee drink from their favorite coffee shop will be appreciated far more than a regular gift.

Jesse · 8 months ago

Retailers also benefit when a gift card is not used and expires.

Gift givers often want the recipient to use the gift card on something slightly frivolous, rather than something necessary, but boring. So the aspect of making the purchase less painful, is not entirely a bad thing.