Polling and Market Research Since 1984	AHEAD OF THE CURVE
December, 2006	Volume 2, Issue 12

In search of the perfect "regift"

Free shipping draws shoppers to Web sites

Gift giving without breaking the bank

Several solo trips the top way to shop

Shoppers want to hear "Merry Christmas"

Let the buying begin

December is here – the time when most respondents in a recent Zogby Interactive poll kick off the holiday shopping season. Some of those shoppers dash through the mall with their arms full of gifts while others scope out Web sites in search of just the right present – with free shipping, of course.

Black Friday may get most of the shopping spotlight, but only 12% of shoppers say they wait until the day after Thanksgiving to start buying gifts. What are they waiting for? December, when 40% of respondents say they start shopping. Some get a head start shopping in early fall (22%) and 12% of shoppers say they space out gift shopping throughout the year.

But their good example isn’t enough to stop some from putting it off – 7% say they wait until the last minute to buy gifts, according to a Zogby Interactive poll of 12,806 adults taken from Nov. 21-29, 2006. The poll contains a margin of error of +/- 0.9 percentage points.

Problems picking the perfect present? Get a gift card.

Despite piles of circulars advertising the this year’s hottest toys, clothes and electronics , many shoppers may have trouble finding just the right gift for someone on their list. The solution? Gift cards, of course – nearly half (49%) of respondents said they have already or plan to purchase a gift card to give as a Christmas/holiday gift. That figure jumps to 59% for those with children younger than 17 at home and also increases in popularity among respondents with higher incomes. Six in 10 say they like this option because the receiver can pick out their own gift and be sure to get exactly what they want.

Many may be hoping someone who has them on their list takes the hint and buys them a gift card too – 69% said they like to receive gift cards because they can choose just the gift they want. Nearly three in four women are hoping to get gift cards this year, compared with 66% of men. While our polling shows gift cards are a hit with all ages, younger respondents are most likely to say they enjoy receiving gift cards – three out of four of those 18-24 said they like getting gift cards. But for the receiver to get the perfect gift, the gift card has to be from the right store – 39% say they have received a gift card to a store they do not or would not shop in.

More than half (51%) say they don’t like to see decorations and hear holiday music in stores until after Thanksgiving – when they’re ready to start shopping. One in three (35%) think stores should tone down efforts to get customers in the holiday gift shopping mood – but 10% say they can’t wait until stores put out their decorations and they can hear holiday music as the walk down the aisles.

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Have you ever received a gift card to a store you do not or would not shop in?

Source: Zogby Interactive

The younger the receiver, the more likely the gift card won’t be a good fit – half of those 18-24 have received a gift card to the “wrong” store, compared with just 24% of those older than 70.

In search of the perfect “regift”

So what do you do with a J.Crew gift card if your taste is more Hot Topic? Instead of letting that card go to waste, 17% admit to “regifting” the gift card with the hope the receiver will have better luck.

But most are still reluctant to embrace the idea of regifting – only 9% said they plan to regift a present they received in the past to someone else this year. Women are more likely to regift this holiday season – 10% say plan to pawn off a present, compared to just 7% of men.

Even though few plan to actually give an unwanted present to someone else, the majority of respondents (63%) think regifting a present is OK – as long as it has not been used and the recipient would be a better fit for the gift. Younger respondents tend to view the idea of regifting more favorably – but that number falls to half (49%) among respondents older than 70. The oldest respondents are also most likely to have a negative view of regifting – 40% think you should stick with what you get. Overall, one in three say regifting is in poor taste and gifts should be given only once.

Free shipping sweetens online shopping deals

Instead of standing in long lines along with swarms of other weary shoppers, many choose to do at least some of their shopping online – and hope to save money by buying from sites that offer free shipping.

Two out of three respondents (67%) say they plan to purchase Christmas and holiday gifts online this year while 14% say they still haven’t made up their minds, down from 84% who said they have purchased holiday gifts online in the past.

Nearly half of respondents (48%) say they go out of their way to find and use discount codes and coupons for online holiday and Christmas shopping

For those shopping on the Internet, free shipping plays a big part in where and what they buy online. Nearly half (47%) said free shipping was very important when shopping online for holiday gifts. Sites that don’t offer good deals on shipping could be losing out on business. The majority (71%) of respondents said they have decided not to purchase a Christmas or holiday gift online because the site didn’t offer free shipping or the shipping costs were too high. One in four woman say they have clicked away from a purchase due to shipping issues, compared to 67% of men.

With more Web sites than ever competing for customers’ holiday gift dollars, it can pay to shop around. Half of respondents say they plan to buy holiday gifts from Amazon.com – and 20% plan to shop on eBay. Target (14%) and Wal-Mart (12%) are also must-visit sites for Web shoppers, along with L.L. Bean (14%), Best Buy (13%) and specialty clothing retailers (18%).

Four in five respondents (79%) would rather give a gift than receive one.

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Gift giving without breaking the bank

Half of respondents say they have set up a budget this year so holiday shopping sprees don’t get out of hand – slightly less than the 59% who said they have had a holiday gift budget in the past. Those with children younger than 17 at home were more likely to have a holiday budget this year (56%) compared to those without young children (48%) – which could be a big help if shopping means bringing along the kids while maneuvering though the minefields of temptations in each store.

For those who say they have had a holiday spending budget in the past, the overwhelming majority (91%) say they have stuck to it.

But even with a spending plan in place, 55% said they would blow their spending plan if they found just the right gift. The youngest shoppers were most likely to give in – 68% said they would ignore their budget and buy the gift anyway. Men were more likely to go over budget for the perfect gift – 58% compared to 51% of women.

While some gifts may be tempting, even more (68%) said they have resisted the urge to buy a gift that would put them over budget. Three out of four of those with children at home have made the decision not to purchase a gift so they could stick with their spending plan – more than the 65% of those without kids at home.

One in four plan ahead for the expense of holiday shopping, setting aside funds specifically for gifts. Again, those with children were more likely (32%) to set money aside compared to those without kids (22%) – as were married respondents (28%) compared to single respondents (19%).

Just more than half (55%) say they plan to keep their holiday spending the same as last year but more say they plan to spend less this year (28%) than spend more (14%). Most (26%) say they plan to spend between $500-$1,000 this holiday season, 22% say they plan to spend $301-$500 and 18% say they will spend $101-$300. But some plan to spend more – 16% say they will spend $1,000 to $2,500 and 4% plan to spend more than $2,500.

How much do you plan to spend this holiday season?

Source: Zogby Interactive

Only 22% of respondents say they plan to use cash to buy holiday gifts this year – debit/check cards (36%) and credit cards (35%) are the payment methods of choice. Far fewer plan to write out paper checks – just 4% in our poll. Paying by credit card is most popular with older shoppers – nearly half (49%) of those older than 65 say they plan to pay for most holiday purchases that way. But debit/check cards – which take money directly out of a checking account and avoid the potential interest of a credit card – tend to be the preferred payment method of younger shoppers, including just more than half of those 18-29.

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What’s the “right” amount to spend on someone?

Even with a budget in place and the best of intentions, it’s easy to go overboard. But everyone’s definition of “overboard” is different – so what is the right amount to spend on gifts for a child or a “significant other”?

When it comes to shopping for kids, 43% say spending less than $100 is appropriate to spend on a child, while one in three (31%) would spend between $100 and $200 and 15% would spend between $201 and $500.

Most respondents said spending even more on a gift for a spouse or partner is appropriate. Most (35%) say between $100 and $200 was appropriate, while 28% say between $201 and $500 is the right amount and 16% would spend less than $100.

Most prefer several solo shopping trips

While one in four like to get all their shopping done at once, the majority (71%) say spreading out shopping is a better plan. Younger shoppers are most likely to do a marathon shopping session and be done with it – one in three of those 18-29 prefer to shop that way – while older shoppers tend to tackle shopping in several trips.

When heading out to the mall or other stores, most (67%) say they prefer to go it alone while 27% like company while they shop. Our poll also shows older shoppers are more likely to shop solo, while younger shoppers tend to prefer shopping with others.

As shoppers search for the perfect gift, more say they shop by browsing (26%) than sticking to a strict list (15%) – but most have a shopping strategy that’s a combination of the two. More than half (55%) say they shop with a list but will sometimes buy other items depending on what a store has available and what’s on sale. Men are more likely to be sticklers for their holiday shopping list (19%) compared to just 11% of women.

Shoppers want to hear “Merry Christmas”

After finally finding a parking space and fighting your way through crowds of shoppers you finally make it to the store where a clerk tries to get you into the shopping spirit with two words – “Merry Christmas or Happy Holiday.” The greetings war heated up last year with many stores opting out of saying “Merry Christmas” for fear of offending customers, opting for the more generic “Happy Holiday.” That fear may be unfounded, as our polling shows 95% of respondents say they are not at all offended when a clerk wishes them a “Merry Christmas” – and only 1% of respondents said they are very offended at that greeting.

It may be not saying “Merry Christmas” that is the real offender – 32% say they are offended when a clerk says “Happy Holiday” and half (51%) say they are bothered by stores trying to be politically correct by using that greeting. One in three (36%) say they have even avoided shopping at a store or cut a visit short because a clerk wished them “Happy Holidays.”

The most public bout in the “Merry Christmas” vs. “Happy Holidays” battle has taken place at the nation’s largest retailer – Wal-Mart. After Wal-Mart’s switch to “Happy Holidays” greetings left many customers feeling anything but cherry, the store has switched back to “Merry Christmas” this year. Our poll shows that decision could put customers in more better mood as they walk into the store – 35% of respondents say the switch will make them more likely to shop at Wal-Mart this year.

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Are you very offended, somewhat offended, or not at all offended when a store clerk wishes you a “Happy Holiday” instead of a “Merry Christmas”?

Source: Zogby Interactive

But a clerk’s greeting may not be enough to get some into the holiday spirit – one in three say they are less in the mood to celebrate the holidays this year compared to five years ago. Despite a big win in November’s elections, Democrats (41%) were more likely to be down in the dumps over the holidays than Republicans (26%) and Independents (36%). Women were also more likely to be less in the “holiday mood” – 37% say they feel that way this year compared to 30% of men.

Most (46%) say there’s no change in how they feel about the holidays this year compared with five years ago – but one in five say they’re more in the holiday mood this year.

Most to send Christmas and holiday greetings though the mail

In addition to shopping, 69% will also sit down to write Christmas and holiday cards to send out to friends and family this year. Sending cards tends to me much more popular with older respondents – 79% of those older than 70 plan to send cards out this year. But 46% of those 18-24 will too – and that number jumps to 59% among those 18-29 and continues to increase from there.

But can a card ever take the place of a gift? – it has for one in three respondents, who say they have decided to only exchange cards with someone they have exchanged gifts with in the past.

Homemade gifts are a big hit—65% say they have given gifts they made themselves such as cookies or crafts and 88% have received homemade gifts.

If you had to choose to do all of your Christmas/holiday shopping on either the Internet or at the mall, which would you prefer?

Source: Zogby Interactive

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For more infomation about polling and market research, contact Chad Bohnert at (315) 624-0200 ext. 237 or chad@zogby.com

Despite all the stores and Web sites promoting their "perfect" gifts, 70% say they worry about what to buy "the person who has everything." Women worry about this the most—78% say they stress about what gift to give, compared to just 61% of men.

Instead of making them guess about what gift to buy, 36% say they make a wish list of gifts to give to family and friends.

One in four respondents said they would rather receive several smaller, less expensive gifts compared to 29% who would rather receive a single more expensive gift.

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Zogby’s American Consumer Publisher John Zogby President & CEO, Zogby International
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