
Financial Services
Financial Services
As gift cards have become increasingly popular, concern has been raised about the number of cards which are not redeemed. The purpose of this exploratory study is to examine the pattern of gift card non-redemption and to explore the reasons that consumers cite for not using these products. A survey of English-speaking Canadian consumers was conducted to explore attitudes and behaviors surrounding gift card receipt. The extent of consumers’ non-redemption of gift cards, both in terms of number and in terms of value, was examined. Factors for non-redemption show a mix of both positive sentiments (e.g., waiting to use for a specific product) and negative feelings about the cards (e.g., issuer or value). Implications for card issuers and public policy makers are considered in the light of the findings presented.
Associate Professor of Marketing
Providence, RI