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Do consumers appreciate promotional gifts?

Marek Hudik (Faculty of Business Administration, Prague University of Economics and Business, Prague, Czech Republic)
Miroslav Karlíček (Faculty of Business Administration, Prague University of Economics and Business, Prague, Czech Republic)
David Říha (Faculty of Business Administration, Prague University of Economics and Business, Prague, Czech Republic)

Journal of Consumer Marketing

ISSN: 0736-3761

Article publication date: 24 January 2023

Issue publication date: 24 March 2023

404

Abstract

Purpose

This paper aims to examine whether consumers’ appreciation of promotional gifts exceeds firms’ cost of providing these gifts. The paper also compares characteristics of appreciated and unappreciated gifts.

Design/methodology/approach

The authors surveyed 1,289 college students in five European countries. The authors use willingness to accept cash (WTA) for an item to assess consumers’ appreciation of promotional gifts. They then compare WTA to firms’ estimated cost of providing the gifts.

Findings

On average, consumers’ appreciation of promotional gifts is 2.4 times the estimated cost of these gifts to sellers. Appreciated gifts tend to be less costly, tend to accompany more expensive purchased items and are more likely to complement these items. The results also reveal that more expensive items come with more costly gifts, although the gifts’ cost increases less than proportionally with the associated items’ price. The gift items are appreciated by men more than women.

Originality/value

This study enriches the literature on promotional gifting by introducing a simple measurement that can help firms decide whether to use gifts or discounts to promote their products.

Keywords

Citation

Hudik, M., Karlíček, M. and Říha, D. (2023), "Do consumers appreciate promotional gifts?", Journal of Consumer Marketing, Vol. 40 No. 3, pp. 305-314. https://doi.org/10.1108/JCM-09-2020-4109

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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