The art of Gift Giving

As pumpkins and spider webs started to change into Christmas lights and decorations, pressures of buying gifts for my family, friends, and especially, my girlfriend, increased. Luckily (or not so luckily) for me, my girlfriends birthday is on December 23th, obligating me to look for two especial gifts (I have tried combining both Birthday and Christmas gifts into one in the past, needless to say the reactions were not great). Making things even more complicated, my girlfriend is the kind of person that had it all: clothes that has still their tags on them, jewelry, shoes of every kind, all of what you can think of she had it. So what should I get her? 

On top of all the pressure, a few months earlier on my birthday she had delivered a beautiful polo jersey as a gift, so I really thought I owed her this one. I needed to find the perfect gift. (Below you can see the picture of us both, me of course, wearing her gift).

Having assignments still due and final exams coming soon, my time was limited, and the process of buying the two perfect gifts was becoming more of an stress than an enjoyable experience. After procrastinating online, I found what I though it was a unique jacket that she will love. Looking for some extra advice and approval I decided to ask her best friend, she loved it. The jacket (which was on sale which was a huge plus) was what I thought would be one of the perfect gift and relieve started to fill me as I received the confirmation order for my purchase. As I was looking for the other gift, and for my surprise, I received and email from the store I ordered the jacket that read " Sorry for the inconvenience, but your order has been cancelled". Frustrated, I wrote to the store, and they argued, that there was no XS size left of the jacket, and that my order could not be processed. At this point, stress was high, as I was in the middle of finals, and had no gifts for my especial one. 

Do not get me wrong, I love giving her things, as I believe they demonstrate the love I have for her, but finding the right gift was not being easy. Desperate, I  sought help in her best friend, and luckily she sent me links to things she might like. Soon, I found a jacket which could be shipped from Spain for no extra charge, so I felt proud I had one gift for her. I knew, as it was only a jacket, it would be for Christmas, as I felt it was a more generic gift that would not cause the "WOW" factor in her.

Having no time to go to the mall, my nights started to become endless internet searches on women's products I knew little about. 

When I was about to give up, one day, my girlfriends best friend sent me a link on what I thought it was an overpriced pendant necklace. First, I did not consider it at all, but then I thought on the prestige of the brand (it was a Tiffany's  and how cheap it was compared to all the rest of the products they offered. I started to consider it more and more, and I thought of the gift the next couple of days, having the dilemma if that was the gift for her or not. After thorough debating I decided to give up on my search and go for the necklace. I started the buying process, and it asked if I wanted the gift to be engraved, I considered it a nice detail (and what was 20 extra bucks anyways right?). After that, it appeared that the product was only delivered through Fedex, making it 30 extra dollars. Long story short, with all of the extra costs I paid around 35% more for the gift. But at the end, it was worth it: the gift buying process was done. 

Now I could sit back, relax and think on my exams. 

Gift giving can be defined as symbolic and economic exchange were "consumers procure the perfect object(artifact), meticulously remove the price tag (symbolically changing the item from a commodity to a unique good), carefully wrap it, and deliver it to the recipient (SWD, p.434). The gift giving process, as described with the story above, can be more of an stressful rather than a gratifying experience.

According to the slides, gift giving rituals if a form of economic exchange - recipients are obligated to reciprocate, and that is how I felt about the birthday gift I had to buy for my girlfriend. As I mentioned earlier, a few months before, she had came with a very thoughtful, unique gift, which I enjoyed a lot. I knew that it was not cheap, hence I felt the obligation of giving her something that was at least, approximately the same in economic terms. Even though my girlfriends intentions (I am sure), was for my birthday gift to be a form of symbolic exchange were my girlfriend was motivated by unselfish factors and did not expected me to reciprocate, I did felt I had an obligation to meet her expectations, causing myself a very stressful gift giving process.

As mentioned in the Dark Side of Gift giving, owing someone a gift is not fun and it is a pressure. In this case, after the gift my girlfriend had gave me, I felt uncomfortable on not giving her something that was even better. This also brings me, to some other interesting aspect that I learned about gift giving. Often, one is willing to spend more in a gift that he is for himself. After I bought my girlfriend the necklace, I compared the price on how many things for myself I could have buyer (to put things into comparison, I could have almost bought a Play Station 4 (which I really. really want) for myself), yet I am not willing to spend that kind of money for myself as I found it a waste). 

With this, I am not saying that gift giving is not a pleasurable experience, because as you finally buy something, you feel relieved and you feel you just found the perfect thing to demonstrate all of what you fill for that especial person. Even though the process might seem stressful, at the end gift giving is very gratifying and fulfilling. I feel that money is better spent for others than for one, and that in is a especial occasion to say thank you in a unique way. 

Now that I think back about all the stress that I went through to buy both gifts for my girlfriend, I feel all was worth at the end because she deserves, and everyone that is worth gift giving, deserves the time and effort of those little details. 

From a marketer and consumer perspective, gift giving is a big opportunity for corporations, as people are willing to spend more in someone else than for themselves. Gift giving can be accompanied by an occasion such as Christmas, or for a persons birthday or any especial day such as an anniversary. Companies should take advantage of this facts, and offer consumers with packing that is ready for gift giving. Furthermore, the holidays, are a great opportunity for companies to promote gift giving and market their products as the best gift anyone could receive. Furthermore, there are businesses that almost entirely defendant on gift giving, for example, Tiffany and Co, relies on husbands and boyfriends that want to buy their significant other the perfect gift that ranges from a pair of earnings to engagement rings. This being said, gift giving should be seen as a very important advantage for companies as they can take advantage of promotions, nice packing, and the generosity of the holidays to promote the consumption of their products. 

We can see what a great opportunity gift giving is for any business, as they have to encourage the purchase of their products. It is also a very especial time of the year for promotions and advertisements, as well as to demonstrate the gratification of gift giving. For example, WestJet, for the second consecutive year, have surprised us all with real time gift giving in advertisements that had gone viral because on how the marketing campaign is set up: instant gift giving gratification. The following two examples are great examples on how corporations take advantage on holidays to create promotions and promote gift giving and not only the material component of it but also the sentimental one.

Last Years WestJet Gift Giving Commercial:

And they did it again: 

Marry Christmas and Happy Gift Giving!

Solomon, M. R., Zaichkowsky, J. L. and Polegato, R. (2013) Consumer Behaviour: Buying, Having, and Being, Sixth Canadian Edition. Toronto: Prentice Hall Canada.

Cole + Parker and The Self

"What a great and unique idea" I thought to myself as I listened to the presentation on Cole+Parker company, on my Marketing Management class. Interestingly enough the company had made millions of dollars selling socks. As a consumer, I often wonder how companies selling such dull products can differentiate themselves and survive in a world filled with competition. But this company did it unique. The company had introduced a very innovative trend, which is colorful socks, for use under suits to give each person its unique personality and color when they are wearing their work attire. The company had introduced this high-end colorful socks to sell in premium stores such as Harry Rosen for business professionals, and since its introduction they have had a great success. Hence, the company has given back a little bit of life to the "boring" and monotonous life of professionals by fabricating something colorful you could wear. 

After my class, I decided to go myself and check the product, as I found it interesting how a person could stand out of the crowd wearing this colorful attire. Even though the product is not cheap, as they sell for around 40 dollars per two pairs of socks, it does crate a unique statement on one's self. 

Even more interesting about this company, is that they work towards a great cause, and this is why their business really sky rocked. For every sock they sell, they donate a significant percentage on helping entrepreneurs on third world countries start their business. "Socks for small businesses". They grant loans to people that need as less as 100 dollars, to start with their new ventures, helping them and their families financially, and strategically. (To find out more: http://coleandparker.co/1-for-many)

As a personal experience, I have participated in many internships where going off to work was not easy. As you get to the office all of your colleagues look like robots dressed to oppress uniqueness and create some sense of identity. People often have the need to express themselves, to express their personalities, and how are you able to do it if you are obligated to dress in a black suite everyday?

Our self-concept can be defined as: "beliefs a person holds about his/her own attributes, and how he/she evaluates these qualities" (SWD p. 121). To demonstrate our self concept we need "props" to demonstrate our personal selfs, as "others make inferences about our personality based on our choice of consumption practices and products". What this company had understood is that people have the necessity to be unique, and when they cannot they would buy whatever prop to make them stand out from the crowd. Cole+parker have created a market in which business professionals can express themselves, their personalities, as well as bring some color to their lives, with a simple thing such as socks. This product is able to influence our self concept and social identity by permitting us to wear something unique when we are programmed to try and be equal. 

Cole+parker had made it possible for people to elaborate on their extended selfs in the individual level, so that they can really demonstrate who they are and what they stand for.

As a consumer behavior learner I think this company had hit the nail perfectly, as it has demonstrated all of us that you don't need to have a extravagant product to be successful, because success can be found in regular products such as socks if you do the business for the right reasons and understand your consumers. The company had understood that consumers have a need to be unique, a need to fulfill to demonstrate their own selves, and to demonstrate who they are, in something the book calls impression management. The company understood that with little room for uniqueness the only time were business professionals could show some of their personality was with stylish touches in their socks, that can only be seen when they seat down. The necessity of having a unique self, a strong body image, which is defined as the consumers subjective evaluation of his/her physical self, have made of this product very successful because it had permitted people to express their uniqueness where there was little room for it.

 

As this company has demonstrated, targeting each persons self-concept and sense of uniqueness can become very profitable for companies. In todays world, everyone wants to stand out, and buy props that will extend and shape their self to what they want to portray. Companies can use this as an advantage (as Cole+Parker has done) as they can provide consumers with a little bit of their personalities. There has been many brands that have successfully done this, an which we should learn from. For example, American Abercrombie and Fitch, was very successful at mass selling their line of clothing because they portrayed the ¨cool¨guy/girl stereotype, something that every teenager sought. Another clear example of products that have successfully became profitable by giving people the opportunity to extend their selfs, has been Apple by demonstrating in their products a certain level of high status. What I am trying to say, is that as consumers we buy products that are visible to other people, to express who we are and what we believe in. Companies, especially in the clothing and accessory industry should learn what different people want to appear to others to be. Like never before, there is an opportunity for niche markets that demand different products for their uniqueness. A clear example, is the new trend ¨hipster¨, which are people that dress retro style, let their beards grow and have been categorized as the new hippies. Many brands have the opportunity to tailor to the these niche markets and become profitable by selling unusual products. For example, one company has started launching beard hygiene products, so that the so called ¨hipsters¨ can take good care of their beards. It is important for people now a days to demonstrate who their are by the products they use, so companies need to be attentive on what are the trends on people and tailor to them so that they can express their uniqueness, and their personality on physical props. 

Solomon, M. R., Zaichkowsky, J. L. and Polegato, R. (2013) Consumer Behaviour: Buying, Having, and Being, Sixth Canadian Edition. Toronto: Prentice Hall Canada.

HALLOWEEN: The Values behind the celebration

It is October 1st, and as I go into the Loblaws in South Keys I cannot help but notice big square boxes filled with bright, orange, pumpkins. Even though it is my fourth year, here in Canada, it is still a strange view for me, as I had never seen a pumpkin in my life before, yet alone hundreds of them. As I do my groceries I cannot stop but think about the weird holiday that is Halloween. People buying the pumpkins not for consumption, but for decoration. In my way home, my thoughts intensify as, I see houses covered in Spider Webs, skeletons hanging from trees, and ghosts in almost every backyard. 

For me, it is something very unique as I come from Ecuador, a country which Halloween is not celebrated. This is why every year since I been to Carleton as an International student, around this time of the year, I can't help but wonder why do people spend so much in decorations and candy, so much effort in carving pumpkins, and why is the scary celebrated. Halloween is the only time of the year we enjoy terror, and that is not a normal thing if you have not being raised to accept that. Think about it, Halloween is celebrated by all ages and in different ways. Little kids dress up, often resembling something scary and go out at night to the famous "Trick or Treat". College students find yet another excuse to drink and party dressed up. (And personally I found it quite funny because I have heard from various physiology professors that a person is much more willing to do something they would normally not do if they have something to cover their identity. 

Going further into this extraneous, yet fascinating day, I have decided to do some research on where did it originally came from. Halloween has its origins in the ancient Celtic festival known as Samahia, which is a celebration of the end of the harvest season in Gaelic culture. It was used as an announcement so that the ancient pagans took stock of supplies and prepare for winter. Furthermore “ The ancient Gaels believed that on October 31, the boundaries between the worlds of the living and the dead overlapped and the deceased would come back to life and cause havoc such as sickness or damaged crops.” Irish and Scottish immigrants brought this celebration to North America.

But what does it mean from a consumer perspective? 

First, it is interesting to analyze some Halloween economics, Businesses had seen the demand for candy, masks, pumpkins etc. as an opportunity to boost sales and now provide the customer with everything Halloween related to increase their revenues. Currently, is impossible to walk down the street and not see a store advertisement their new “pumpkin flavor” or their “discounts for customs and candy" It is estimated that Halloween expenditures in 2012 in the USA almost equal the government expenditures of Kenya for the year.  Can you imagine spending the same amount in candy, customs, and one-time disposable decorations in one month than a government spends to build roads, schools, and hospitals in a whole year? 

Sales for Halloween are also rising with an expected total expenditure of 8 billion dollars. YES BILLION DOLLARS.

It is calculated that total expenditures in costumes are around 2.87 billion dollars, decorations 2.36 billion dollars, and Candy 2.33 billion dollars. It is also important to note that men spend more in Halloween with an average of 90.11$ compared to 70.11$ in woman So here, as a consumer, one very important question rises, what is the consumer really buying? Should consumption for a holiday which point is hard to understand (no offense intended) should really be this high?

Within this context, I believe it is very important to talk about values and materialism. A value is defined as a belief that some condition is preferable to its opposite. It is important to discuss values because they are central to what makes a consumer distinct in their consumption, and I believe halloween  highlights a lot of cultural values that can be sometimes surprising. Halloween can be seen as an example of how values in different countries vary. Even though this is not a journal that talks about the "morally correct" allocation of money, it is interesting how we can see different lifestyles and how their cultural values and lifestyles influence their consumption patterns. For example, we can see how in North America, an entire industry has been created to satisfy their lifestyle of consumption which includes pumpkin farms, decoration factories, and the mass production of candies. A lifestyle can be defined as "a pattern of consumption, reflecting a person’s choices of how s/he spends time and money. Choices make a statement about who that person is and the types of people with whom s/he wishes to identify". In this case, in Halloween we can see the American lifestyle of heavy consumerism, and heavy festive decorations, to celebrate something that for many (in my point of view) is not clear. 

Halloween is an example on how North Americans, especially Americans, rank high in a value of materialism. Materialism refers to "the importance people attach to worldly possessions" (SWD. 177). In this celebration, houses are often decorated with disposable spider webs, skeletons, zombies, and other terrifying material. Also, as mentioned above, an average of 80 dollars is spent per person in a one time custom, that will serve its purpose only for one night; and that is a lot.

Were I am trying to get into, is the great opportunities that producers have during this celebration, and how seamlessly pointless celebration can get each family to spend hundreds, if not thousands of dollars in what society has said is "appropriate decorations and customs". Halloween gives producers of almost anything a great opportunity to get to consumers, advertising their pumpkin flavors and seasonal products. 

It is interesting, now getting into consumer behavior how consumers are willing to spend money in something that they would not normally do, if it was in other occasion. I believe nobody will be willing to spend five dollars in a pumpkin outside of a Halloween context and this demonstrates the powerfulness of occasions on influencing consumer behavior. Also, getting back into what was mentioned before of different values and lifestyles, it is very interesting to see how different lifestyles, and societies influence on values can influence consumer behavior. For example, were I come from, the idea of dressing up sounds plain ridiculous, let alone spend an average of 80 dollars per person in doing so (taking into account that minimum wage is 250 dollars per month). This, not counting how many dollars are spent in decorations and candy. 


Not being born with the idea of Halloween, again, it is interesting to see how candy sales boost and the huge opportunities there are for marketers to appeal to halloween consumers. As a personal experience, it is surprising to the levels marketers have gotten this days with personalized figure candy, candy of all kinds of flavors and, and all kinds of sizes. Even though I do not understand why such a sweet treat is handed out in such a scary holiday, this is a very big opportunity for producers, as consumers lifestyles demand for candies of all flavors sizes and decorations.

This being said, companies have huge opportunities in what is now called occasion marketing. Companies can take advantage of any holiday and use it to launch limited edition products, do especial promotions, and give especial deals. Holidays and festive days mean a lot to companies as it is their opportunity to sell their products. For example in Halloween, all sort of businesses take advantage by selling customs, candy, and even flavored products, such as Starbuck´s famous Pumpkin spice late. There is a huge opportunity to create themed promotions and advertisements, that will get people in the mood of the holiday, hence not seeing the advertisement as intrusive. As a consumer and a future marketer, it is interesting to note how companies take advantage of these holidays and festive days to increase consumption. Do doubt about it, festive days are a  huge opportunity for companies (and every company should use it) to advertise, promote, and get people to consume. In the extreme hand, there are holidays that have been completely transformed into consumer feasts. For example, one day after Thanksgiving in America, a festive night has been created to celebrate consumption. Black Friday as it is known, gets people crazy, and makes people often buy what they don't need, only because of huge sales. The focus is, that regardless which holiday or festive day, companies should use them as an opportunity to promote consumption of their products, and as statistics have shown, they are days were themed consumption increases profits for companies. 

               

                     

It is not surprising that for its high demand on decorations, candies, and customs, Halloween had become the second largest grossing holiday after Christmas. Halloween even though as I said before, difficult to understand, makes consumers purchase in intense quantities and producers supply occasion products that serve their customer needs, making this celebration a huge consumer feast. 

http://blog.inomics.com/en/halloween-economics-who-spends-money-on-what/

http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=7058

Solomon, M. R., Zaichkowsky, J. L. and Polegato, R. (2013) Consumer Behaviour: Buying, Having, and Being, Sixth Canadian Edition. Toronto: Prentice Hall Canada.