With the start of the holiday shopping season, companies want to particularly focus on “gift splurgers.” According to Nielsen: “These consumers say they like to shower their loved ones with gifts and see themselves more as spenders rather than savers.”
Based on research by Nielsen, gift splurgers can be segmented by age and gender: The percentage of those 18-34 years of age are much more likely to splurge than any other age group (17% above the average). And females are more likely to splurge than men.
Click the chart to learn more.
With major industries using this analysis, they can make a more strategized approach on how to get those specific consumers to buy items they cant resist. They will want to buy and buy because they may think their getting a really great deal when in reality its a big marketing scheme.
With the holiday season rapidly approaching, we start thinking about gift-giving and to whom we should buy gifts for. Many individuals love giving gifts to others, and therefore buy a multitude of presents for their families. A majority of people start their holiday shopping on Black Friday. Because of the many deals stores put into place, shoppers see an opportunity to purchase more than they would usually buy. Personally, I myself am a “gift splurger” just because of the simple fact that I enjoy buying presents for the people I care about and take advantage of the deals that take place on Black Friday.
Before I even read this article my immediate answer to the title, “Are YOU a Gift Splurger?”, was yes. I absolutely love spreading cheer to my loved ones, and express that desire through various gifts. After reading this article, I realized that I fall into the Millennial and African-American categories, which were both second within their respective group classification. It is important for marketers to advertise to consumers who are more likely to splurge during the holidays, although, marketers should also make it part of their agenda to reach out to consumers less likely to splurge. If advertising can appeal to and stimulate the minority of the splurge consumers, companies will be able to expand their profits.
Everyone enjoys receiving a gift, regardless of what they may say. For companies, this sort of data can be enormously advantageous in maximizing potential earnings during the holidays. In one of the previous blogs, “The Art and Science of Advertising Messages” we could see how marketers or CMO’s only engage approximately 5% of our brains through advertisement (although I’ve stated my skepticisms to the findings), and with this new information they can find who they should specifically try to market to during the holidays. The demographics may be different from company to company, however if this data is true, I think national companies can see who and where they should most heavily market their products to.
I am not sure whether i am an absolute gift splurger, but i really like the gifts or samples gotten from retailers. Although, many merchants appeal to customers through giving gifts or samples in some special periods-black day, Halloween, Thanksgiving, in fact, customers always get different levels gifts or samples according to how much they have spent. For example, the Sephora’s membership celebration period will come recently, but not all members will get the 20% off discount at the same time. The most upper level-vip rouge can firstly use this discount from Nov.6th -9th, but the second level will begin from 10th. Therefore, i think that sometimes gifts and samples can show customers as spenders rather than savers.
I am very sure that I am one of the gift splurgers, because I am the person of that target customer and I enjoy giving and receiving gifts, and believe it is the best way to show your love to others. It is wise for companies to pay more attentions to those who are willing to buy gifts to others and produce valuable gift sets. It is a huge market to explore. And from my own experience, I would appreciate if the companies can launch a good gift set suitable for various young people, so that I don’t have to worry what to send to my friends.
I am absolutely a gift splurger. The second I see something that reminds me of one of my loved ones I need to buy it, and then I can’t stop.Just the feeling of seeing their face when they open everything gets me so happy. My mom is the exact same way. I’m in the Millennials, and she is in the Generation X age group, so we fall right in place to being the most giving. The way they set up the stores during the holiday season is just so exciting and fun, and I can’t help but look. Clearly, all stores know how to set up to grab their target market’s attention. As a perfect example, I work at Starbucks, and at work today my manager showed me the room full of the new holiday showcase. There were ornaments, all cute posters promoting the new holiday beverages, red cups, this new glitter keychain that is a gift card as well with $50 on it, etc. I smiled right away because I know that once its set up I’m going to want everything, and my store, being a younger store, will have a lot of people just like me coming into it and splurging.
I would say I am a gift splurger when it comes to certain people. Once I see something I know someone will love, I have to get it just because I know it would make that special someone happy. I don’t even need a special occasion to buy the gift. My mom is the same way especially when it comes to getting gifts for me. She’s in Generation X and I’m in Millennials. Its pre-Thanksgiving and Toys R Us sent us a catalog in the mail for games and toys for children already. The catalog honestly made me want to buy some video games so I guess I can say I am an impulse buyer.
The data presented in the article can be very useful for marketers. The chart of the United States can help marketers decide where to regionally concentrate advertising. For example, a company’s marketing firm might want to focus advertising in large cities since these cities seem to contain a large percentage of gift splurgers. Spending more money advertising in cities like New York City and Miami would be more valuable than spending less money advertising in smaller cities, since the company is more likely to appeal to a greater number of gift splurgers. The data presented in the age and gender chart can help marketers further decide who to target within the big cities. Marketers might spend the most money advertising to female millennials since they are statistically more likely to be gift splurgers. These data can help marketers more efficiently advertise during the holiday season.
I think I am a gift splurger. During the holiday season, anything that I see that I know any family members or friends will like I will get it immediately. With industries using the chart by Nielsen, they know what specific items people are going to buy without a thought of them resisting to buy even if it’s expensive.
Very interesting read. I’d say it’s pretty accurate. I tend to be a gift splurger when I find I have a little bit of extra money; around the holidays there are always deals on video games, which is a huge weakness for me and always hurts my wallet!
The easiest answer to this question is “YES.” I work in retail at Lord and Taylors and I see this happen especially around the holidays. I work at the King of Prussia Mall which is right out side Philadelphia. This year I am already schedule to open at 5am on Black Friday. This is actually later considering or mall some of the stores open at 11pm on Thanksgiving. It gets very crazy because while we are promoting all the black Friday sales there is usually NBC News and quite a few other stations in the mall trying to interview what people are buying and what is the new latest thing to buy this year. The King of Prussia mall has become the largest mall in the United States with our big new addition.
I dont know if i would consider myself to be a gift splurger but i know that many people are and everyone enjoys receiving or giving gifts. This research that was done by Nielsen really paints a picture for how different companies can market their products better in order to sell more.
I would definitely consider myself a gift splurger, but that is depending on who the gift is for. I think that it is understandable as to why millennials are more likely to splurge on gifts than baby boomers and the silent generation. Millennials and Generation X have a very “I want it now, and I need it now” mentality, so they aren’t like to wait for a price to be just right. We see this mentality when new electronics are released such as Apple products or when clothing lines are released such as the H&M Balmain line. Consumers flock to have the item or items first regardless of the price tag. Also, being that Millennials and Generation X are more connected to the internet and television, they are more exposed to advertisements for good and services that remind them of someone they are looking to get a gift for.
I found this particularly interesting because I could relate to this very well. For starters, it’s no wonder that the age group of people that tend to splurge are rather young, because I assume that as you get older you have more experience with saving money especially when it comes to gifts. What really interested me about this ‘study’ was that I recently had a conversation with my friend about me being a gift splurger. I am a female in the age group between 18-34, so it was definitely a little freaky that I ended up actually classifying as a gift splurger when someone had just told me that I’m too generous in my spending! Basically, I can personally vouch for this study being accurate.
It’s not surprising that millennial spend the most on gifts because I believe that we are the worst at saving what we earn. As you get older you learn how to budget your money and you have more financial obligations. Right now, I do not have to worry about paying for kids, rent, mortgages, insurance, etc. I am reliant on my parents for most of those financial obligations. However, older people who have kids, like my parents have much they have to worry about. And because of this they tend to spend less.
I believe that many people of todays generation are gift splurgers simply because there is so many different things you can buy today. From accesories to products you already have to completely new products. Technology advances everyday and there is always new and better things to buy every year. There is no better time to buy these things then the holidays season because that is when you get the best discounts. This may lead to gift splurging.
I have noticed that almost every chain brand have their own gift cards displayed and sold at their cashier including restaurants, grocery stores, apparels, etc. The concept of gift, meaning buy it for someone else, is a brilliant idea for companies to increase sales but on the other side, leads to many unnecessary consumption that the product user do not really like or want. The gift card idea is much smarter than real product gift but I think not a lot people like it because it is not as thoughtful as a well chose gift.
I am a gift splurger, and I think it is a good thing. To give our lovers what they want to get is a good thing to show our love is wonderful. And if there is discount on what we want to buy will be perfect.
When I first read the title of this article, “are you a gift splurger?”, I immediately responded “yes” to myself. I have never put a price limit on what I can or should spend on a gift. Whether it be for a birthday, christmas, or other important holiday, I enjoy purchasing gifts for my loved ones. It comes as no surprise to me that my generation is being ranked as most likely to be a “gift splurger”. My generation does not have any concept of how to save money. Many are handed money by their parents, and do not know how to appreciate the value of the dollar. This may add to the idea of why we are currently ranked as most likely to be a “gift splurger”. As you grow older, and have to begin to pay bills and be responsible with money, you will be less inclined to go over the top with your best friend’s birthday gift.
This collection of data is very interesting to observe. From my experience I tend to agree that generation x is the group who would be most likely to spend the most on gifts, but we have to take into account the reasons for this. This group is going to be generally making more money because of jobs, and also have more people they have to buy gifts for. I am very surprised that the older group is that low of a percentage, though. Overall the data presented in this article can help various companies with ordering inventory and presenting their stores a certain way to make the most profit.
I am definitely the kind of person who is a gift splurger. A gift splurger is someone who likes to shower their loved ones in gifts and see himself or herself as more of a spender than a saver. Personally I feel that I only get in this mind set during the holidays. Throughout the rest of the year I like to save my money and not spend it on senseless things. People who like to gift splurge get enjoyment out of seeing other people be happy. I know that when I give a gift I love seeing that persons reaction and knowing that they are happy can make me happy.
After reading the article title, I immediately though of my holiday shopping list. Usually I try to allocate a specific amount of money per person just so I stay within a budget. Every year, I somehow manage to spend more than my allocated budget. With the holidays quickly approaching it’s interesting to see how companies leverage media usage to reach their target audience. It is surprising to see the percentage breakdown among age for gift splurgers. It’s interesting to see that Baby Boomers and Silent generations are less likely to splurge considering the roles they play in the lives of younger children (aka grandchildren) and the common association that grandparents spoil their grandchildren.
It is not surprising that the certain age group listed above that tends to splurge more on giving gifts is in the ages 18-34. More people in the younger age group are more up to date with the technologies in today’s day and age. This will lead them to wanting to spread their knowledge of the technology to their older relatives/friends to make them up to date on the times. I know that my grandmother (75) would not ever buy an Iphone because she simply would not know how to use it. However, last year I wanted her to be able to facetime with me while being at school so I bought her an Iphone as well as an Iphone for my grandfather because there was a good deal on buying two. When i gave them the phones, I taught them how to use them and now we facetime all time so they do not miss me too much while being in New York. As seen in my example, I see myself as a gift splurger simply because I want others to have what I have as well as being up-to-date.
The gift card I think is a measure that seller let consumer pay attention to their product. Gift card is a very effective way that increase the sales. But for me, I nevery buy gift card before, I more like the discount directly rather than others, because I feel the money in hand is more reliable than handing a paper card.