Give the Gift of Uncertainty, Love

In Bette Midler’s rendition of “Gift of Love,” she yearns for certainty as she sings, “I’ll have you beside me. Who could ask for more?” But consumer behavior researchers at University of Miami and Greece’s ALBA Graduate Business School say a retailer’s use of a gift as a promotion will benefit from uncertainty if love’s involved. When the product considered for purchase is for pleasure, not knowing which of a set of possible gifts will end up being the bonus tends to increase purchase likelihood. The surprise is itself a present.
     In using this research finding to shape your promotional gifting, know the limitations:

• If the item being considered for purchase is primarily for functional use rather than for pleasure, the purchase likelihood is higher when there’s certainty about the gift. 
• If a shopper is paralyzed with indecision between two alternatives, add a gift to accompany one alternative. Researchers at University of Chicago and Columbia University find that with financial investment decisions, it even works to offer a small gift with both alternatives because this moves the decision toward the riskier choice, breaking the tie. The researchers called this the “mere token effect.” 
• Consumers identifying with an Asian culture are more comfortable when they believe they’ve earned a promotional reward. Researchers from Baruch College, University of California-Berkeley, and San Francisco State University surprised people with promotional gifts. Those from the United States enjoyed their surprise gifts more than did those from Hong Kong, Singapore, Taiwan, or Vietnam. Because the reward appeared to be unearned, the East Asian recipients seemed to feel it produced a menacing imbalance. 

     Also know the ramifications of running out of a promised gift. Some participants in a Stanford University study were given a gift, while the rest were denied the gift. Each participant was then asked how much they’d be willing to pay for the gift if purchasing it. The average price was about 45% higher among those denied the gift.
     Next, those participants denied the gift earlier were given the gift. Now every participant had the gift, and each of them was asked if they’d like to trade the gift for another item, which the researchers had determined was of about equal value. Among those who got the gift at first, about 40% said they’d trade. Among those denied the gift at first, about 80% said they’d trade. Denial led to dislike.

Click below for more: 
Dissolve Decision Paralysis 
Appeal to Asian-Americans’ Achievement Ethic 
Sweeten Scarcity with Ample Warning