News

Gift Cards Preferred Over Cash by Gift Givers

Friday 8 October 2004 20:05 CET | News

A majority of American consumers would prefer to give an electronic gift or spending card over cash or a paper gift certificate, according to the fourth annual Consumer Insights Survey commissioned by ValueLink.

Fifty-two percent of those surveyed said they would prefer to give a gift card over cash (38 percent) or gift certificates (11 percent). The 2004 survey of 1,006 U.S. adults aged 18 or older revealed continued steady growth in gift card usage across several measurable categories. American consumers are purchasing more gift cards at higher values than at any time since ValueLink started tracking the figures in 2001. Sixty-four percent of the adult population in the United States, an estimated 139 million people, said they purchased and/or received a gift card in the previous 12 months versus just 36 percent in a 2001 survey. Consumers purchased an average of just under seven gift cards in the previous 12 months with an average value of $59 per card, up from just four cards at $44 per card in 2001. While many wallets and purses may be getting loaded with gift cards, they dont stay full for long. Twenty-seven percent of those who received a gift card in the previous 12 months said they spent the initial value of their card within one week of receiving the card. Another 31 percent spent the value within one month. And, more than half (55 percent) of those surveyed said they spent more than the initial value of the card they received. As evidenced by the preference given to gift cards over cash and paper certificates, as well as their benefits, electronic gift cards have evolved to become a desired product by purchasers and receivers alike. Sixty-six percent of gift card purchasers said that they give gift cards as a primary gift while 28 percent said they package gift cards with another gift. Survey respondents said -- Benefits of purchasing gift cards include: - 52 percent said gift cards allow receivers to get what they want; - 36 percent said gift cards are convenient to purchase; and - 17 percent said they dont have to think about the specific gift they are giving. Benefits of receiving gift cards include: - 45 percent said gifts cards benefit their own shopping experience (they can get the gift they want and/or wait for a sale to get more gift); and - 26 percent said gift cards are convenient and easy to use. Other key research findings include: - 83 percent of consumers surveyed purchased gift cards in person at a store location. Another 9 percent made gift card purchases on the Internet/merchant Web site; - Of those consumers surveyed who have purchased gift cards in the past, 50 percent said they are very likely to somewhat likely to purchase a gift card via a retailer or restaurant Web site in the coming year; - One quarter, 26 percent, of consumers surveyed said they purchased gift cards at a store that offers gift cards from multiple retailers/merchants; - Compared to the average $247 spent on gift cards in the previous year, consumers surveyed between the ages of 45 and 54 spent an average of $281 on gift cards during such year; and consumers surveyed age 65 and older spent an average of $200 on gift cards during such year; - 80 percent of all purchased cards had a $20 to $50 value; and - Consumers surveyed carry an average of 4.2 plastic cards (gift, credit, reward, etc.) in their wallet or purse at all times, 14 percent carry 6-9 plastic cards at all times, and 10 percent carry 10 or more cards at all times.


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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce


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