The science of a great gift

Just in time for the season, behavioral scientist Richard Shotton writes in Marketing Week about the psychology of giving.

He boils down the academic research into what he calls "three wise lessons."

Giving makes us happy. 

• We're happier when buying for others than when buying for ourselves. Therefore, brands should seek opportunities for people to give their products as gifts. 

• The "Share a Coke" campaign has done this well. 

Doing is better than having.  

• Experiences make people happier than new stuff. But it's still important for the giver to have something physical to hand over.

• So, if you are a physical, tangible brand, think about how you could turn your product into an experience. Shotton suggests exclusive events like tasting sessions or after-hours shopping.

• But don't forget the giver. Givers still like to give something tangible. Even if you are marketing an experience, create some physical token that can be boxed up to create an opening experience. 

• The UK brand Red Letter Days specializes in this. 

More is more.

• People will scrimp and save when buying for themselves, but they are less price-sensitive when buying presents for others.

• We believe that if we pay more for a gift, the recipient will like it better. (Although research with recipients suggests that isn't necessarily so.)

• Shotton's lesson for brands is not to go too crazy with discounts around the holidays. To an extent, this is a time when people want to pay more.

Some good food for thought heading into a well-earned holiday break.