Incentive - December 2007 - (Page 40)

Sweet Sophistication PAGE 42 At Your Service PAGE 46 Chocolate is becoming a reward for those with more refined tastes Tabletop rewards are fun, practical and elegant Gift Card Grief ? his holiday season, Consumer Reports is challenging what has become a consumer and incentive program mainstay: gift cards. Specifically, unused gift cards, gift card fees and expiration dates. The report discussed a number of “gotchas” that may catch the gift cardholder by surprise, pointing to a survey last spring of 1,500 consumers that indicated fees and expiration dates as top sources of aggravation in dealing with gift cards. Also of concern is a high rate of disuse, with cards forgotten in the bottom of drawers, forfeited to fees and expirations or never spent because of lack of interest. About $8 billion in gift card value was left unused in 2006, according to TowerGroup, a research firm in Needham, Mass. Citing a survey by the Consumer Reports National Research Center, Consumer Reports also states that more than one in four of those who received gift cards during the 2006 holiday season had not used at least one of them nearly a year later. By Alex Palmer Consumer Reports raises concerns about one of the incentive industry’s top rewards Online Holiday Buying Keeps Rising T It was a thorough critique of the industry, but representatives from both bankand retailer-issued gift card groups felt the report simplified some of the issues and overlooked positive experiences consumers have with the cards. “The report is very much out of step from what consumers are actually telling us,” says Marilyn Bochicchio, president and executive director for the Network Branded Prepaid Card Association, a trade association for parties promoting bank-issued cards. Bochicchio pointed to a contrasting study reported at the beginning of November. Conducted by Dan Horne, professor of marketing at Providence College, the survey found an over 93% satisfaction rate toward branded prepaid gift cards, from a sampling of 1,788 consumers. “Clearly consumers find that this product fills an unmet need better than their other options, which would include cash, checks or a variety of merchandise items,” says Bochiccontinued on page 41 T his year, 38 percent of all consumers will buy Christmas gifts on the Internet, the same percentage as a year ago. Books top the list of online Christmas buying, with 40 percent saying they will buy books as gifts. Apparel and footwear came in second with 39 percent of consumers intending to purchase these gifts online. Toys/games rank third as online Christmas buying choices, followed closely by movie videos and DVDs. Of the 38 percent who said they purchased Christmas gifts last year on the Internet, 91 percent said they were satisfied with their online buying experience. Source: The Conference Board / Christmas Spending Survey 2007 40 | Incentive | December 2007 | incentivemag.com http://incentivemag.com

Table of Contents for the Digital Edition of Incentive - December 2007

Incentive - December 2007
Contents
Editor’s Note: Revved Up
In the News
Cover Story: Rolls-Royce Empowers Its Own
Case Study: Booz Allen Hamilton
Beating Your Best
Incentive Primer: Add Value to Your Event
Keeping Safety In Mind
Incentive Interview
Potentials Here and Now
Research: Corporate Gifts Facts Report
Tabletop
Awards: Travel Gift Cards
Travel News
Viva Puerto Vallarta
Indigenous Spas
Advertiser Index
Off the Cuff: Ambassador Christoph Bubb
Luxury Brands Special Supplement

Incentive - December 2007