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Thursday, December 22, 2011

#ALGORITHMS: "Giving Big Beats Giving More"

People mulling over stocking-stuffer gifts for the holiday season and businesses offering giveaways should study the findings of new research that looks into recipient perceptions about add-on gifts.


Researchers claim that giving one big gift is perceived as more generous by the recipient than combining a big gift with smaller stocking stuffers. Adding the smaller gifts decreases the perceived value of the one-big-gift. Researchers at the Pamplin College of Business (Virginia Tech) have analyzed the phenomenon and concluded that bundling together a big gift and a smaller stocking stuffer indeed does reduce the perceived value of the overall package for the recipient.
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