Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

The paradox of gift giving: More not better, says new study

13.12.2011
Holiday shoppers, take note. Marketing and psychology researchers have found that in gift giving, bundling together an expensive "big" gift and a smaller "stocking stuffer" reduces the perceived value of the overall package for the recipient.

Suppose you're trying to impress a loved one with a generous gift this holiday season, says Kimberlee Weaver, assistant professor of marketing in the Pamplin College of Business. One option is to buy them a luxury cashmere sweater. A second option is to add in a $10 gift card.

If their budget allows, most gift givers would choose the second option, as it comprises two gifts — one big, one small, Weaver says. Ironically, however, the gift recipient is likely to perceive the cashmere sweater alone as more generous than the combination of the same sweater and gift card. "The gift giver or presenter does not anticipate this difference in perspectives and has just cheapened the gift package by spending an extra $10 on it."

Weaver is part of a research team that recently discovered, through a series of studies, what the team has called the "Presenter's Paradox." The paradox arises because gift givers and gift recipients have different perspectives, Weaver says. Gift givers follow a "more-is-better" logic; recipients evaluate the overall package.

"People who evaluate a bundle, such as a gift package, follow an averaging strategy, which leads to less favorable judgments when mildly favorable pieces (the gift card) are added to highly favorable pieces (the sweater). The luxury sweater represents a generous 'big' gift. Adding on a 'little' gift makes the total package seems less big."

The same contradictory effect can be found in other situations, says Weaver, whose research article, "The Presenter's Paradox," co-authored with Stephen Garcia and Norbert Schwarz of the University of Michigan, has been accepted for publication in the Journal of Consumer Research.

"People who present a bundle of information assume that every favorable piece adds to their overall case and include it in the bundle they present," she says. However, notes Garcia, associate professor of psychology and organizational studies at the University of Michigan, "this strategy backfires, because the addition of mildly favorable information dilutes the impact of highly favorable information in the eyes of evaluators. Hence, presenters of information would be better off if they limited their presentation to their most favorable information — just as gift givers would be better off to limit their present to their most favorite gift."

Weaver and her co-authors found that the paradox was strongly evident in seven studies across many product domains, from bundles of music to hotel advertisements, scholarships, and even "negative" items such as penalty structures.

When asked to design a penalty for littering, for example, those who were put in charge preferred a penalty that comprised a $750 fine plus 2 hours of community service over a penalty that comprised only the $750 fine. However, perceivers evaluated the former penalty as less severe than the latter, Weaver says. "Adding a couple of hours of community service made the overall penalty appear less harsh and undermined its deterrence value."

The discovery of the Presenter's Paradox sheds new light on how to best present information, says Weaver. "Whether it is a public relations expert pondering which reviews to include on a book jacket, a music producer considering which songs to include in a music album, or a legal team building up arguments for a case, they all face the important task of deciding what information to include in their presentations. So do consumers who apply for a job and homeowners who try to sell their house."

All of them, she says, run the risk of inadvertently diluting the very message they seek to convey by their efforts to strengthen it. "Fortunately, there is a simple remedy: take the perspective of the evaluator and ask yourself how the bundle will appear to someone who will average across its components. Doing so will alert you to the fact that others will not always share your sense that more is better."

"Prompting consumers to consider the overall picture entices them to adopt a holistic perspective, which allows them to correctly anticipate evaluators' judgments," says Schwarz, professor of marketing and psychology at the University of Michigan. "But when left to their own devices, presenters are unlikely to notice that evaluators do not share their more-is-better rule."

Sookhan Ho | EurekAlert!
Further information:
http://www.vt.edu

More articles from Studies and Analyses:

nachricht The importance of biodiversity in forests could increase due to climate change
17.11.2017 | Deutsches Zentrum für integrative Biodiversitätsforschung (iDiv) Halle-Jena-Leipzig

nachricht Win-win strategies for climate and food security
02.10.2017 | International Institute for Applied Systems Analysis (IIASA)

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Frictional Heat Powers Hydrothermal Activity on Enceladus

Computer simulation shows how the icy moon heats water in a porous rock core

Heat from the friction of rocks caused by tidal forces could be the “engine” for the hydrothermal activity on Saturn's moon Enceladus. This presupposes that...

Im Focus: Nanoparticles help with malaria diagnosis – new rapid test in development

The WHO reports an estimated 429,000 malaria deaths each year. The disease mostly affects tropical and subtropical regions and in particular the African continent. The Fraunhofer Institute for Silicate Research ISC teamed up with the Fraunhofer Institute for Molecular Biology and Applied Ecology IME and the Institute of Tropical Medicine at the University of Tübingen for a new test method to detect malaria parasites in blood. The idea of the research project “NanoFRET” is to develop a highly sensitive and reliable rapid diagnostic test so that patient treatment can begin as early as possible.

Malaria is caused by parasites transmitted by mosquito bite. The most dangerous form of malaria is malaria tropica. Left untreated, it is fatal in most cases....

Im Focus: A “cosmic snake” reveals the structure of remote galaxies

The formation of stars in distant galaxies is still largely unexplored. For the first time, astron-omers at the University of Geneva have now been able to closely observe a star system six billion light-years away. In doing so, they are confirming earlier simulations made by the University of Zurich. One special effect is made possible by the multiple reflections of images that run through the cosmos like a snake.

Today, astronomers have a pretty accurate idea of how stars were formed in the recent cosmic past. But do these laws also apply to older galaxies? For around a...

Im Focus: Visual intelligence is not the same as IQ

Just because someone is smart and well-motivated doesn't mean he or she can learn the visual skills needed to excel at tasks like matching fingerprints, interpreting medical X-rays, keeping track of aircraft on radar displays or forensic face matching.

That is the implication of a new study which shows for the first time that there is a broad range of differences in people's visual ability and that these...

Im Focus: Novel Nano-CT device creates high-resolution 3D-X-rays of tiny velvet worm legs

Computer Tomography (CT) is a standard procedure in hospitals, but so far, the technology has not been suitable for imaging extremely small objects. In PNAS, a team from the Technical University of Munich (TUM) describes a Nano-CT device that creates three-dimensional x-ray images at resolutions up to 100 nanometers. The first test application: Together with colleagues from the University of Kassel and Helmholtz-Zentrum Geesthacht the researchers analyzed the locomotory system of a velvet worm.

During a CT analysis, the object under investigation is x-rayed and a detector measures the respective amount of radiation absorbed from various angles....

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Ecology Across Borders: International conference brings together 1,500 ecologists

15.11.2017 | Event News

Road into laboratory: Users discuss biaxial fatigue-testing for car and truck wheel

15.11.2017 | Event News

#Berlin5GWeek: The right network for Industry 4.0

30.10.2017 | Event News

 
Latest News

Underwater acoustic localization of marine mammals and vehicles

23.11.2017 | Information Technology

Enhancing the quantum sensing capabilities of diamond

23.11.2017 | Physics and Astronomy

Meadows beat out shrubs when it comes to storing carbon

23.11.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>