Episode 47 Gift Giving
In this episode we look at a range of behavioral science experiments that shed light on effective gift giving. These are useful because our intuition about what receivers want is often off the mark. In particular, we cover experiments showing how spending on others is a better way for givers to boost their own happiness than spending on themselves and why receivers tend to prefer experiences rather than material gifts. While there are plenty of personal applications for these findings we also focus on the implications for brands.
Episode Highlights
Dunn's study showing that givers get a bigger boost to happiness by spending on others, rather than on themselves
How Pret a Manger have capitalized on Dunn’s finding in a commercial setting
Gilovich's study showing that receivers tend to prefer experiential gifts over material ones
Resources & Useful Links
See below for additional resources from this week's episode.
Keep Listening
Ep30 - Optimism Bias with Tali Sharot
How consumer behavior has the tendency to overestimate the likelihood of positive events and underestimate the likelihood of negative events
Ep31 - Costco: Loyalty Cards, Ski Trips, and the Sunk Cost Effect
How consumer behavior can be decided by loyalty programes and the theory of sunken cost
