Newswise — As the holiday season kicks off, UC Berkeley's Haas School of Business is offering several experts to talk about a variety of topics, including last-minute shopping, giving experiences as gifts, avoiding hidden charges, and heating habits.
Last-minute shopping
In early December, shoppers have the luxury of time to contemplate the perfect holiday gifts for their loved ones. Fast forward to December 24, and the prospect of waking up the next day empty-handed probably weighs more heavily than any grandiose notion of finding the perfect present. Suddenly, getting a gift that is merely "not bad" is of paramount concern. That's because when time is short, consumers settle for products that are just good enough rather than products billed as having a special zing, according to Haas School of Business Marketing Professor Jennifer Aaker, who examined such consumer behavior in a forthcoming journal article.
Gift trends
Priya Raghubir, an associate professor of marketing at the Haas School, has two predictions for this holiday season: an increase in pet product and pet accessory sales and an increase in people giving each other "experiences" such as massages or travel rather than products as gifts. "I think people may be 'consumer-gooded out' and will want to give something different that won't just add to useless clutter in the house," Raghubir says. Most people under-consume experiences as they are viewed as hedonic and luxurious and not strictly needed, which makes people feel guilty buying them for themselves, she adds. "Therefore, with an experience, you can give a gift that people would really like " and that they would remember -- but would not have bought for themselves," Raghubir says.
Watch for hidden charges
John Morgan, an economist at the Haas School, advises consumers to look for hidden charges this shopping season. "Shipping charges can be hazardous to your wealth," says Morgan, who studies competition in online markets. In addition to online retailers charging for shipping, airlines are adding hidden energy fees to their tickets and hotels are charging guests just for having a phone in their room, Morgan points out. "Read the fine print," Morgan says. "The savvy consumer is not just the one who looks for the lowest base price, but the one who looks at the lowest total price."
Early holiday shopping
Christmas items seem to crop up on store shelves earlier and earlier each year. This year, Christmas ornaments could be spotted just an aisle away from Halloween costumes. Haas Marketing Group Professor Emeritus Louis Bucklin says the trend is similar to a price war where one retailer cuts prices and then another one cuts them even lower. The customer may gain but not necessarily the retailer. While Bucklin does not forecast or comment on holiday sales and specific products, he can comment on retail competition, innovation, and trends.
Deal-hunting online
Because there are likely to be a plethora of deals this holiday season, consumers shopping online will benefit from checking Internet shopping search engines first before going to a retailer's Web site in order to find the best price, says Haas Marketing Professor Ganesh Iyer. Comparison shopping search sites allow for an easy comparison of the same products and also negate the challenges consumers may have in remembering different prices and deals available at individual retailers, Iyer adds.
Heat or eat
A combination of high energy prices and a harsh winter can mean some consumers will be cutting back on spending, according to Catherine Wolfram, an associate professor at the Haas School of Business and co-executive director of the UC Berkeley Center for Energy and Environmental Innovation. Wolfram's research has shown that households without savings cut back their spending by roughly 40 cents for every $1 increase in their energy bill beyond their expectations.
Haas School of Business -- Leading Through Innovation
For over 100 years, the Haas School of Business at the University of California, Berkeley, has offered a superb management education to outstanding men and women from around the world. The school is one of the world's leading producers of new ideas and knowledge for all areas of business, and a launching point for many new businesses.
The Haas School is widely known for its diverse and talented faculty, staff, students and alumni. They have created an innovative academic culture that stresses cooperative teamwork, entrepreneurship, a global point of view, and an emphasis on new ideas and fresh perspectives. The school's programs benefit significantly from the university's practice of interdisciplinary research and teaching, and the school's strong connections to nearby Silicon Valley. For more information, visit http://www.haas.berkeley.edu/.
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