Gift cards entice shoppers to spend more according to UW researcher

Gift cards entice shoppers to spend more according to UW researcher

I saw this article about the psychology of gift card spending today in my alumni newsletter (shameless plug here, U of W is an excellent university). Do visit “here to read the article.":http://alumni.uwaterloo.ca/alumni/e-newsletter/2007/february/gift_cards.html The main point is that people don’t view gift card cash as completely real, so even if they can get cash back, their natural tendency is to want to spend more than is on the card, topping up with their own money as it were. Consider the power of this for a merchant if your card is reloadable, such as with the “Ultimate Gift Card.":http://www.ugcard.com When the emphasis is on converting customers and new customers into clients that spend from a plastic, reloadable, prepaid card, the potential for additional purchases and usage is tremendous. Think about it, and even better, act on it in your business today. Greg

2 Feb 2007