GiftCards Featured in Freakonomics NYTimes Column

by Erin McCune on January 7, 2007

in Payments News

Levitt and Dubner discuss gift cards in their Freakonomics column in today's New York Times magazine:

As for gift cards — well, let’s just say there is good reason that they
are known within the retail industry as a stored-value product: they
store their value very well, and often permanently. The
financial-services research firm TowerGroup estimates that of the $80
billion spent on gift cards in 2006, roughly $8 billion will never be
redeemed
— “a bigger impact on consumers,” Tower notes, “than the
combined total of both debit- and credit-card fraud.” A survey by
Marketing Workshop Inc. found that only 30 percent of recipients use a
gift card within a month of receiving it, while Consumer Reports
estimates that 19 percent of the people who received a gift card in
2005 never used it.

Freakonomics
The Gift-Card Economy: Best Buys $16 Million Windfall

By STEPHEN J. DUBNER and STEVEN D. LEVITT
Published: January 7, 2007
The New York Times Magazine

One Response to “GiftCards Featured in Freakonomics NYTimes Column”

  1. Brian H says:

    I always use gift cards within a week (2 at the most) of receiving them. Just to make sure I don’t forget about them.

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