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http://dx.doi.org/10.15813/kmr.2021.22.2.006

What Gift and to Whom? : Choosing a Gift Based on Psychological Distance  

Lee, Hyowon (Kookmin University)
Kang, Hyunmo (Kookmin University)
Publication Information
Knowledge Management Research / v.22, no.2, 2021 , pp. 95-117 More about this Journal
Abstract
In this study, we investigate which alternatives to choose when giving a gift, according to the giver's relationship with the receiver. In particular, we study which alternatives are preferred when the prices are approximately the same: products with high-brand status but low-model ranking or products with low-brand status but high-model ranking. Leclerc, Hsee, and Nunes(2005) conceptualized the relative preference between a low-ranking model of a high-status brand and a high racking model of a low-status brand. The category effect is the preference for lower-ranking models of high-status brands. Meanwhile, the ranking effect refers to the preference for higher-ranking models of low-ranking brands. Based on construal level theory, the current study suggests that the category and ranking effects vary depending on the giver's relationship (vertical vs. horizontal) and intimacy (distant vs. close) with the person who will receive the gift. We manipulate the relationship and intimacy of the subject receiving the gift and verify the interaction effect. Results reveal that the giver exhibited a category effect in vertical relationships in which the psychological distance was far from the relationship. However, the ranking effect was found in horizontal relationships in which the psychological distance was close. Lastly, the gift selection significantly depends on the level. Overall, this study showed that when choosing a gift, the selection of a low-ranking model of a product from a high-tier brand or a high-ranking model from a low-tier brand might vary depending on the type of relationship and the level of intimacy. In addition, our findings provided managerial implications in targeting and marketing communication strategies based on product status.
Keywords
Gift giving; Relationship; Category effect; Ranking effect; Level of relationship;
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