Unconditionally Gift Arriving Consumers

As a retailer, you could present a surprise gift to a customer after they’ve completed a purchase. You could present a surprise gift for participation in your store loyalty program. On the other hand, you could offer a gift when a shopper enters your store, with no consumer action required. Such a tactic of unconditional gifts can nicely complement your existing programs of promotional rewards, according to a team of researchers at Northeastern University, University of Alabama, Karlstad University, Linköping University, and Norwegian School of Management.
     The studies demonstrate that an unconditional gift creates in both new and existing customers the often unpleasant feeling of obligation, which can be relieved by store spending during the current visit, and the often pleasant feeling of gratitude, which strengthens loyalty for future patronage.
     In the study conducted at a general merchandise store, shoppers receiving an unconditional gift spent about 32% more during that visit than did an equivalent group of shoppers not receiving the gift. This should be evaluated in terms of the cost to the retailer of the gift. Fortunately, the researchers determined that the unconditional gift does not need to be expensive to be effective.
     However, in another study, Northwestern University researchers found that gift recipients do tend to compare the value of what they receive with the value of gifts they see others receiving. The researchers’ suggested solution is intriguing, even if odd. They rewarded some consumers with cash and others with a slice of cake. As you’d expect, those who received more cash expressed greater joy than did those who received less cash. Yet the size of the cake slice didn’t matter, perhaps because it’s harder to calibrate slice size than monetary amount.
     Still, there was evaluation. In the studies, gift recipient joy was influenced by the flavor of the cake.
     Limiting gift value eases another problem: A risk with unconditional gifting is that customers expect ongoing gifts. An unmet expectation has a more negative influence on a customer than a satisfied expectation has a positive effect. Researchers at Macquarie University and Universidad Torcuato Di Tella found that while a bonus reward delivered regularly by a marketer can delight a customer who feels they’re receiving the reward because they’re valuable to the business, the marketer discontinuing the reward in that situation risks revenge against the business.
     Their study results indicated that revenge intentions are less pronounced when the monetary value of the treat is small.

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