On-the-Go stores will extend the brand and be located on TotalEnergies service station forecourts to cater to motorists and busy consumers.
Social norms stopping digital gift cards from reaching full potential
By our News Team | 2023
Many recipients prefer receiving digital gift cards, but givers worry that these cards won’t be perceived as ‘being thoughtful’.
Gift cards are a well-established business and marketing tool and, with the world going increasingly digital, it’s not unreasonable to expect physical gift cards to be making way for digital versions.
But you’d be wrong. Research coming out of the US finds that most gift givers likely won’t choose a digital gift card over a physical gift card, even though many recipients would prefer the digital option.
Photo credit: Pmsyyz via Wikimedia Commons
The study by West Virginia University has been published in the peer-reviewed academic journal, Psychology and Marketing.
“These studies looked at the psychology involved in giving and receiving gift cards. Across the board, they showed that givers are less likely to choose digital – as opposed to physical – gift cards than recipients are to prefer to receive them. This asymmetry occurs partly because givers overestimate the extent to which recipients see digital gift cards as violating the social norms of gift-giving,” explains gifting expert Julian Givi, an Assistant Professor of Marketing at the university.
“Givers may worry that digital gift cards won’t be seen as thoughtful. Whereas physical gift cards require a giver to go to a store and purchase the gift card, digital gift cards require only a minimal amount of time and effort, as the giver can quickly obtain one online.”
He continues: “And a digital gift card is more likely to imply that the giver waited until the last minute to purchase a gift. This is all inconsistent with what we think about when it comes to gift-giving norms.”
Easy to use and hard to lose
However, while givers often feel that “physical gift cards are superior in terms of desirability,” recipients are likely to see digital gift cards as “superior in terms of feasibility,” Givi said. “They’re easier to use and harder to lose.”
Indeed, his data demonstrate that when givers consider how they themselves would feel about receiving a digital gift card as a present, they’re more likely to give a digital gift card to someone else.
One study that moved the needle on givers’ openness to considering digital gift cards involved participants imagining giving a digital gift card as a gift for a birthday that was identified as happening during ‘National Digital Gifting Month’.
The researchers invented that event as an analogue to Cyber Monday, but Givi said the results showed that “givers were more likely to opt for digital gift cards when there was an occasion that altered their perceptions of gifting norms”.
That discovery offers retailers options for pushing digital gift card sales through occasion-based promotions, and Givi said he’d advise marketers “to promote their digital gift cards in ways that reduce givers’ concerns about norm violations – for example, by indicating that digital gift cards are becoming more popular and thus more in line with gifting conventions”.
Despite giver anxieties, digital gift cards are increasing in popularity – the global market grew approximately 15% from 2015 to 2020, when it reached US$258-billion. With similar growth expected over the next decade, the digital gift card market is projected to reach more than a trillion dollars by 2030.
You can find out more about the research here.
The social media platform’s ad revenue is up 25.8% year-on-year and is forecast to total US$71-billion for 2024.
Alliance offers a simple, fast and convenient experience for consumers to buy groceries online, with orders being delivered within an hour.
Consumer must feel that buying the product will somehow elevate them so that they sit more squarely alongside the influencer they follow.
What are the key things that people consider before buying online? Researchers find that the computer mouse holds important clues.
Bon Marché has typically confined itself to the affluent suburbs of Zimbabwe’s capital. Now it has opened in Marondera in Mashonaland East,
As rugby fans liken the SA national team’s alternative kit to the Checkers Sixty60 e-commerce platform, the brand seizes the opportunity.
Sports apparel company renews an old partnership with Newcastle United as it further cements its presence in top soccer competitions.
Interactive Advertising Bureau study finds internet advertising has reached a new high of 34% of the overall SA advertising market.
Toyota marketing veteran takes over the reins as the automobile industry gets to grips with a range of new challenges.
By excluding innovative platforms and the content that circulates on them, B2B marketers could be missing out on opportunities.