(Giving less) brings blessings!

A stroll through the supermarket or a trip downtown makes us shudder for a moment: The overall visual impression suggests that Christmas is just around the corner! A glance at the calendar may reassure us only briefly, because one thing is clear: the season of giving is approaching. Of course, this doesn’t just apply to our personal lives; brands—at least corporate brands—are also expected to be generous as the year comes to a close. The sales department, at any rate, has already made its position clear: Last year’s little pocket calendars were so embarrassing that we’d rather not have taken them to customers in the first place! This year, there definitely has to be more to it. And sure, of course you’d love to treat your entire customer base to generous gifts… if it weren’t so expensive!

This is where new findings from behavioral science on gift-giving—or, more specifically, on how the giver is perceived—come in handy. Researchers at Chicago Booth have shown that the value of a gift earns the giver less prestige than the careful selection of the recipient. This means that a company that spends a lot of money giving gifts to all its customers has less impact than a company that gives gifts to only a few, carefully selected customers—even if the gift itself is of higher value. This is especially true if the company is not otherwise known for being generous.

As is so often the case, the right combination of belonging and distinction creates more value than the product itself.

But before you rush to put together your list of Christmas gift recipients, here’s a word of caution: If it’s true that the select few who receive gifts now have a particular fondness for your brand—what effect will that have on those who aren’t included (and then find out about it)? It’s still a tricky situation. Maybe pocket calendars for everyone after all?

Here's the link:https://www.chicagobooth.edu/review/what-makes-gift-feel-special