Do you stress out when it comes to finding the perfect holiday gift for someone? Is a digital giftcard OK or will a homemade gift make you seem cheap? Did you spend too little or too much?
It turns out there's a difference between what a recipient wants and what a giver thinks the recipient wants, said Farnoush Reshadi, an assistant professor of marketing at Worcester Polytechnic Institute.
Gift givers "are so afraid of providing a gift that the recipient doesn't want that they feel this anxiety to provide a good gift," said Reshadi, who studies how people make financial decisions, including gift giving.
Recipients want something that they can use for a long time, rather than a present that is flashy or surprising at the moment but has no practical
use, she said.
Julian Givi, an associate professor of marketing at West Virginia University's John Chambers College of Business and Economics who also studies gift giving and consumer behavior, agrees.
"As gift givers, we put a lot of pressure on ourselves. We think that all these things are really going to matter, but at the end of the day, it doesn't really matter as much as we might think," said Givi.
If the gift is great, it makes the recipient happy, but if it misses the mark, the giver's act still signals the person cares about and values them, he said. For instance, Givi, who is a Buffalo Bills fan, said if someone gifted him the wrong Bills player jersey, he would still know they cared enough to give him something they thought he might like.
Does the price matter?
Research has shown that "the gift price is more important to the giver than the recipient," said Rashadi. "Recipients want something that is moderately priced. Anything that's too cheap sounds thoughtless and anything that is too expensive makes them feel indebted."
Too expensive or too cheap depends on the gift giver's budget and financial situation, said Reshadi.
How much the recipient earns may also have a bearing on the gift-giver's price point, said Reshadi, who found that was a factor among some participants in her research.
"They tend to spend more on gifts for wealthy people because they think they have more expensive tastes and they don't want to appear cheap to that person," she said.
But gift givers should not sacrifice their own financial well-being to satisfy those on their shopping list, Reshadi said.
Is it unoriginal or less personal to shop off a person's wish list?
Many families shop for gifts off a person's "wish list." Is that impersonal?
"For gift recipients, they actually find it pretty thoughtful when people are adhering to a list as opposed to going off the list" for something the person doesn't want or need, said Givi.
Digital gift cards or physical gift cards?
If you decide to give a gift card, you may worry that a digital version seems less thoughtful. But it depends.
"Gift givers tend to go for physical gift cards because they think digital gift cards violate social norms of gift giving," Reshadi said. However, her research has found that recipients prefer digital cards because they're easier to use.
Do people want handmade or personalized gifts?
If you have the time and talent to make a handmade gift, Reshadi said they are highly appreciated by recipients "because the giver has (put) so much time and effort into it."
Sentimental gifts that mean something to the recipient are also often appreciated, said Givi.
Physical gifts vs. experiences?
Finally, you may not want to give a gift at all. Recipients prefer experiences more than givers realize, said Givi.
"Experiences both make us happier in the long run and also they tend to bring us closer to the person who gave the gift," he said.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@USATODAY.com or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which breaks down complex consumer and financial news. Subscribe here.
This article originally appeared on USA TODAY: Worried about picking the perfect gift? Experts say relax
