Gift cards: a review and research agenda

Gift cards have received limited study despite being a key element of many retailers’ strategies. One reason may be that approaching the study of gift cards from a traditional economic perspective, i.e. ignoring social relationships, leaves little justification for the rapid increase in gift card sales. Failing to see the value of gift cards, many commentators go so far as to argue against the purchase of gift cards, suggesting that consumers would better off using other gift types. This misses the important point that givers voluntarily buy cards and receivers enjoy gaining them. Consumers undoubtedly perceive the value in gift cards. We suggest that taking a broader perspective on consumer behavior and considering consumers involved in social systems that encourage gift giving, allows us to see the value gift cards create while allowing us to address the concerns gift cards raise more effectively. In this article, we detail the benefits created for givers, receivers, and merchants by the use of gift cards. We highlight areas with significant public policy implications. We outline an agenda for some promising areas of research, including seeking to gain a better understanding of the psychology of giving gift cards and the economics of retail strategies dependent upon gift card usage.