Wednesday, April 22, 2009

The Gift Card Economy

“Since the recession began, people have been afraid to spend money”, as stated in a survey from WSL (Women Survey League). More than half of the women that did this survey stated that they refuse to shop at stores that will cause them to over spend. The behavioral economist suggested that businesses should have events for a short period of time which would help luring more customers to their businesses. Businesses also need to provide “a justification and a deadline” for these promotions. For example for every $500 that they spend, they are given a $50 gift card which would last for 2 weeks from which the gift card was issued. This will make the customer want to spend that extra $50.They can also give the customers different cards for other departments inside the store to expand their growth. Some local restaurants issue out $10 for every $100 their customers spend on meals. This will make the customers feel like they have earned the gift card and keep them coming back.

Reviewed By: Damion Bouton
The article " The Gift Card Economy" by Verginia Postel can be found in the May 2009 The Atlantic