Friday, July 13, 2007

NPD survey says 58% of kids use gift cards

Close to 58% of kids appear to use gift cards to purchase something on
impulse, according to Gift Cards for Kids, the most recent report from
the leading provider of consumer and retail information, The NPD Group.
The report provides insight into the overall dynamics surrounding the
acquisition and redemption of gift cards, while examining children’s
attitudes toward them.

According to the report, toys and/or board games were the most common
purchases made across all gift card categories. Older kids ages 9-14
were more likely to purchase video games and clothing.

Sixty-percent of kids received a gift card in the past few months with
mass merchandiser and toy stores being the most frequently mentioned
type of store gift cards received, followed by food service gift cards.

Mass merchandiser gift cards span all ages while online retailers are
most popular with the 13 and 14 year olds, as are
entertainment/electronic stores and bank cards.  Boys were more likely
than girls to receive an entertainment/electronic store gift card,
whereas girls were more likely to receive a card for a department
store, clothing store and a book store.

Christmas and birthdays were the most popular occasions for receiving
gift cards, with 73% of gift cards being received for Christmas and 18%
for birthdays. Giving gift cards as a reward or allowance is a concept
some seem to be adopting.

The average value of a gift card was $44, and while most respondents
(55%) did not spend additional money when they redeemed their gift
card, 39% of respondents spent more than the face value of the gift
card.  The majority of this additional money was paid for by the kids’
parents (67%) followed by the kids’ own money (28%).

Article Link

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