Extra Value With Gift Cards

Gift cards are commonly used by companies as a medium to encourage more customers to buy a certain product or taking advantage of services. Gift cards are also used by consumers as a present for special occasions. A study conducted in 2006 in the United States reports a total of $80 billion spent for gift cards That figure continues to grow today as gift cards are gaining more popularity and attracting millions of consumers.

What is a Gift Card and how can I use it? Gift Cards are electronic cards that can be used to purchase a product or pay for services. Certain amount is credited to a gift card which will then be deducted from transactions made. Some Gift Cards have limitations - cards can only be redeemed at participating establishments and an expiration date is set for each gift card, depending on the issuing party.

The convenience and ease of using gift cards make them one of the most used mediums for payment. Companies give credit and appreciation to a customer by adding gift cards to a certain product. This is another marketing strategy for the company.

The use of gift cards as a marketing strategy is advantageous to both the company and the consumer. This serves as a discount for the consumer, but the consumer has the discretion on what to use it for. Instead of depreciating the price or value of a certain product, companies offer gift cards This increases the margin of possibility that a products or services will be taken.

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