GIFT EXCHANGE RULE



Gift Exchange Rule

Gift Exchange Rule

Chapter IV: Results & Discussion

Summary statistics

While not nationally representative, our sample was not unlike most of the smaller student samples used in earlier studies. Our survey covered 105 respondents, almost equally divided by gender: 53 males and 52 females. Their ages ranged from 18 to 53 years, with a mean of 21.3 and a mode of 19. Collectively, they reported on 476 Christmas gifts, the average market value of which was $216.73.

Only 7 gifts (or 1.5 percent) were given in cash; 437 (or 91.8 percent) were gifts in-kind, and 32 (or 6.7 percent) were gift cards. The infrequency with which cash was given confirms earlier observations that there is a social stigma attached to giving cash gifts, particularly when the giver and recipient are ostensibly close (Waldfogel, 2002). To avoid this stigma, givers may provide gifts in-kind to signal their knowledge of recipient preferences (Prendergast and Stole, 2001). On the other hand, perhaps to compensate for the stigma, the average size of cash gifts, $421, was substantially greater than the average market price of in-kind gifts ($225) and more than six times larger than the average gift card ($65).

In addition to providing roughly half of the presents in our sample, parents were the most generous givers, bestowing gifts worth an average of $332.52. This relatively high average reflects the inclusion of some of the most expensive gifts: new or used vehicles (automobiles and snowmobiles) and computers. The next most generous givers were boyfriends ($144.23), spouses ($133.85), grandparents ($120.57), and girlfriends ($94.66), followed by aunts, uncles, and cousins ($80.31). Less expensive gifts were given by friends and co-workers ($70.39), siblings ($48.06), in-laws ($47.44), and children ($40.43).12

Comparison of cost estimates with market prices

We tested the methodology used in prior research to determine whether it was valid to use the recipient's estimation of cost as a proxy for a gift's market price, since the marketing literature suggests potentially large errors in cost estimation. In order to ascertain the actual market prices of the gifts they received, the subjects used a variety of sources: 47.4 percent of the market prices were obtained by asking the giver, 22.9 percent were found on the Internet, 20.1 percent were obtained by visiting the store, 6.6 percent were taken from the actual sales receipt, and the remaining prices were found in a catalogue or advertisement.

Of the 31 pre Christmas online questionnaires started, 28 were completed representing a 90.3% completion rate.

As can be seen in figure 1, participants in age group 18-24 were the most represented with 28.6%, followed with age groups 39-45 and 46-52 each representing 21.4% of participants respectfully. Age groups 25-31 and 32-38 were the least represented; each with only 7.1% of the participant population.

Age Group

Percentage

18 - 24

28.6

25 - 31

7.1

32 - 38

7.1

39 - 45

21.43

46 - 52

21.43

53 and over

14.28

Total

100

Figure 1

Women represented 60.7% of participants and men 39.3%.

Participant's ethnic origins were represented by 71.4% white British, 25% from various ethnic minority groups and ...