Gift Cards Purchase & Redemption, Pre-Holiday Outlook 2008

Table of Contents

List of Figures & Tables iv

Introduction 1

Chapter I. Key Findings 3

• Ten Key Findings 3

Chapter II. Consumer Purchasing Behavior 6

• Demographics of Consumers Who Purchase Gift Cards 6
• Demographics of Gift Card Recipients 10
• Purchasing Process 13
• Occasions for Giving Gift Cards 13
• Most Popular Types of Gift Cards 15
• Gift Card Kiosks 20

Chapter III. Consumer Attitudes 23

• Receiving Gift Cards 23
• Giving Gift Cards 25

Chapter IV. Gift Card Usage 29

• Spending Habits 29
• Types of Merchandise Consumers Purchase with Gift Cards 31
• Re-Loadable Gift Cards 33

Chapter V. Gift Card Trends 34

• Trends over the Past Year 34
• Looking Forward 37

Chapter VI. Conclusions 41

Appendix I . Methodology 43

• Quantitative Methodology 43
• Qualitative Methodology 43

List of Figures & Tables

• Figure 1. Have you bought a gift card in the past 12 months? (Among All Consumers) 6
• Figure 2. Average Number of Gift Cards Consumers Purchased Within the Past 12 Months by Age (Among Those Who Purchased a Gift Card within the Past Year) 8
• Figure 3. Average Amount Consumers Spent per Gift Card over the Past Year by Household Income (Among Consumers Who Purchased a Gift Card within the Past 12 Months) 10
• Figure 4. Average Number of Gift Cards Received Over the Past Year by Age (Among Consumers Who Received a Gift Card within the Past 12 Months) 12
• Figure 5. For Whom Did You Buy a Gift Card(s) in the Past 12 Months? (Among Consumers Who Purchased a Gift Card within Past 12 Months) 12
• Figure 6. For What Occasion(s) Did You Buy Gift Card(s) in the Past 12 Months? (Among Consumers Who Purchased a Gift Card within Past 12 Months) 14
• Figure 7. Types of Gift Cards Purchased Within the Past Year (Among Consumers Who Purchased a Gift Card within Past Year) 15
• Figure 8. Types of Gift Cards Received Over the Past Year by Gender (Among Consumers Who Received a Gift Card within the Last 12 Months) 18
• Figure 9. Average Household Income of Gift Card Recipients (Among Those Who Received a Gift Card within the Past 12 Months) 19
• Figure 10. Have you bought a re-loadable gift card (i.e., Starbucks) in the past 12 months? (Among Consumers Who Purchased a Gift Card within the Past 12 Months) 20
• Figure 11. Amount of Gift Cards Purchased From a Gift Card Kiosk, Among All Cards Bought Within Last 12 Months (Among Consumers Who Purchased a Gift Card within the Past Year) 21
• Figure 12. Locations at Which Consumers Purchase Gift Cards from Multiple Gift Card Racks (Among Consumers Who Purchased at Least One Gift Card From a Multiple Gift Card Rack within the Past Year) 22
• Figure 13. Do you like to receive gift cards? (Among All Consumers) 23
• Figure 14. Do you like to give gift cards? (Among All Consumers) 25
• Figure 15. Level of Agreement with Statements About Gift Cards (Among Consumers Who Like Giving Gift Cards) 26
• Figure 16. Level of Agreement with Statements About Gift Cards (Among Consumers Who Don' t Like Giving Gift Cards) 27
• Figure 17. Gift Cards as a Prompt to Try Something New (Among Consumers Who Received a Gift Card within the Past 12 Months) 30
• Figure 18. Length of Time Consumers Typically Hold Onto Gift Cards Before Spending Them (Among Consumers Who Have Ever Owned a Gift Card) 31
• Figure 19. Departments at a Department Store or Discount Store at Which Consumers Would Most Likely Spend a Gift Card (By Gender, Among All Consumers) 32
• Figure 20. Have you reloaded your gift card since you received it? (Among Consumers Who Received a Re-Loadable Gift Card within the Past 12 Months) 33
• Figure 21. Change in Spend on Gift Cards This Year vs. Last Year (Among All Consumers) 35
• Figure 22. Number of Gift Cards Purchased This Year Compared to Last Year (Among All Consumers) 36
• Figure 23. Types of Gift Cards Consumers Anticipate Purchasing for This November / December Holiday Season (Among Consumers Who Are Likely to Purchase Gift Cards This Holiday Season) 39

• Table 1. Have you bought a gift card in the past 12 months? (Among All Consumers, by Demographics) 7
• Table 2. Average Number of Gift Cards Consumers Purchased Within the Past 12 Months (Among Those Who Purchased a Gift Card within the Past Year) 8
• Table 3. Total and Average Amount Consumers Spent on Gift Cards Over the Past Year (Among Consumers Who Purchased a Gift Card within the Past 12 Months) 9
• Table 4. Have you received a gift card in the past 12 months? (Among All Consumers) 11
• Table 5. Consumers' Typical Spending Behavior When Using a Gift Card (Among Consumers Who Have Ever Owned a Gift Card) 30
• Table 6. Percent of Consumers Who Are Likely to Purchase a Gift Card This November and December Holiday Season 38