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VIETNAM NATIONAL UNIVERSITY, HANOI FACULTY OF ECONOMICS THE EFECT OF GIFT RECEIVING SITUATION ON BRAND ATTITUDE CHANGE and GIVER -RECIPIENT RELATIONSHIP REALIGNMENT Author: Nguyen Thi Phi Nga, Ph.D Code: QK - 04- 08 Đ A I H O C Q U O C G IA HÀ N Ộ I TRUNG 7ÁM THONG T'N TH! ■VIẼ!- S n j-IA L Hanoi - 2007 ' I ABSTRACT Although there has been a long tradition o f research on gift giving and receiving behavior in the psychological and social literature, and recently in the marketing, surprisingly, there is no systematic attempt have been made to explore the change o f recipient’s attitude toward a brand and giver-recipient relationship as well as the emotions appearing after the gift receipt In order to fill that gap, this thesis investigate what kind of gift receiving situations are likely to make recipients change their attitudes toward both brand and relationship systematically Toward this end, this thesis proposed two main variables o f gift receiving situation, include prior brand attitude and prior giver-recipient relationship based on recipients’ perception Under the foundation o f literature review and the coping psychological mechanism o f balance theory, congruity theory and involvement theory, we expect that recipients may change their attitudes toward a brand and giver-recipient relationship systematically after the gift receipt by solving the incongruity or imbalance between the two entities: (1) recipient’s prior attitude toward a brand, and (2) recipient’s prior attitude toward a giver-recipient relationship To reach this expectation, the specific purpose o f this study is fourfold First, we explore the effect o f incongruity on recipient’s emotions as well as attitude change toward a brand and giver-recipient relationship after the gift-receipt through the different gift-receiving situations Second, we examine the effect of recipient’s prior attitude toward a brand on his/her brand attitude toward that brand after receiving gift Third, we examine the effect o f recipient’s prior perception of strength o f giver-recipient relationship on brand attitude change And finally, we try to present some marketing strategies using gift giving/receiving context Qualitative and quantitative methodologies are conducted for the initial issue exploration as well as testing the proposed hypotheses in this current study The results o f empirical study with critical incident technique and experiment concluded that our expectation are almost confirmed, and hereafter are the findings o f this cuưent research: (1) gift-recipients change attitude toward both a brand and giver-recipient relationship after receiving the gift when there is incongruity between the two mentioned entities; (2) recipients’ attitude change greatest after receiving the neutral brand from a giver who has strong relationship if comparing to other cases and this is the best situation to influence to the change o f receipient’s brand attitude; (3) receiving the gift from a giver who has strong relationship, recipients have greater change in attitude than receiving that gift from a giver who has weak relationship; (4) recipients have different emotions after receiving the gift across different gift receiving situations, especially they feel satisfied when receiving the favorable brand and no particular emotion or unsatisfied after receiving the unfavorable brand In addition to its theoretical implication, this thesis describes the study’s managerial implications for the development o f brand management in the gift giving/receiving context KEY WORDS: balance/congruity, ambivalence, involvement, brand attitude, relationship realignment, critical incident technique CONTENT I Chapter I: Introduction 1.1 The significance o f the topic 1.2 Problem statement and objective 1.3 Scope o f the study 1.4 Structure o f the study Chapter II: Literature review 2.1 Consumer ambivalence in gift-giving/receiving 2.2 Various aspects o f gift-giving behavior 12 2.2.1 Gift-giving motivation 13 2.2.2 Gift-giving occasion 14 2.2.3 Type o f gift giving 15 2.2.4 Gift giving situation 17 2.2.5 Other important factors considered by givers in gift selection 19 2.3 Various aspects of gift-receipt behavior 20 2.3.1 Recipients’ characteristics 20 2.3.2 Antecedents of gift receipt related to the reformulation o f 21 interpersonal lationship Chapter III: Theory and hypotheses development 23 3.1 Research model 23 3.2 Psychological mechanism 25 3.2.1 Balance theory 25 3.2.2 Congruity theory 29 3.2.3 Consumer ambivalence theory 33 3.2.4 Involvement theory 35 3.3 Variable discussion 37 3.3.1 Prior relationship between the giver and the recipient 37 3.3.2 Attitudes toward a brand 39 3.3.3 Relationship realignm ent 42 3.4 Hypothesis generated 45 3.5 Variable operationalization 51 3.5.1 Prior relationship between the giver and the recipient 51 3.5.2 Relationship realignm ent 52 3.5.3 Attitudes toward a b ran d 53 Chapter IV: Research methodology 54 4.1 Research design 54 4.2 Qualitative research 54 4.2.1 In-dept interview and group discussion 55 4.2.2 Experiment 56 • * i C hapter V: R esult and discussion '5 i Overview results , 62 62 , , 5.2.B ^nd a;ttitud.e c h a n g e , 80 C hapter VI: Conclusion 87 ,, ;>5.1.D i s c u s s i o n , 87 6.2 Recoưimendation 90 R eference 93 A ppendix 100 i LIST OF TABLES Table Gift receiving situations focus on recipient’s perception o f prior brand attitudes and prior giver-recipient relationship 45 Table The directions for generating hypotheses 46 Table Experimental group structure 58 Table Brand attitude change in each gift receiving situation 62 Table Giver-recipient relationship change in each gift receiving situation Table 63 One-Sample Test for attitude change (toward brand and toward giver-recipient relationship) 64 Table Recipients’ emotions appearing in each gift receiving situation 65 Table Dominated emotions appearing in each giữ receiving situation 73 Table Compare brand attitude change between the neutral brand and other cases under the strong giver-recipient f-eiadonship 81 Table 10 Compare brand attitude change between the neutral brand and other cases under the weak giver-recipient relationship Table 11 Table Í 82 Compare the given brand attitude chance under the strbng and weak relationship assertion • - 84 Summary o f results and hypotheses testing 86 -V- LIST OF FIGURES Figure Research model 24 Figure Schematic representation o f balanced and unbalanced state 27 Figure Recipients’ feeling by see Ố8 Figure Recipients’ feeling bv scenario 70 Figure Recipients’ feeling by scenario 73 Figure • Recipients’ feeling by scenario 75 Figure Recipients’ feeling by scenario 77 Figures Recipients’ feeling by scenario 79 Figure Change in brand attitudes and giver-recipient relationship 89 CHAPTER I INTRODUCTION 1.1 The significance of the topic Gift giving/receiving behavior has been defined as the process of gift exchange that takes place between a giver and a recipient (Cohn and Schiffman, 1996) The giving and receiving o f gift is a ritual that takes place in all societies, although in different forms to build and strengthen relationship between the giver and the receiver As a form of reciprocity or exchange, gift giving/receiving is one of the processes that integrates a society, Schieffelin (1980) views the giving of gift, as a rhetorical gesture in social communication Belk (1976; 1979); Caplow (1982); Cheal (1988) consider gift giving is the instrumental in maintaining social ties and serves as a mean o f symbolic communication in social relationship What makes the gift-giving and receiving ritual of great interest to marketers, especially in industrialized nations, is that gift-giving behavior has enormous economic consequences Fo:; examoie, occasions such as Christmas in USA have accounted for more than 30 percent o f retail sales and more than 50 percent of retail profits (Rugimbana Donahay, Neal, Polonsky, 2003) Ruth et al (1999), suggested that in the USA over u s $100bn is spent on gifts each year (p 385) By incentive, 1992, in tbs u s , the volume o f business gift-giving spent by American business has risen steadily from $200 million annually in ihe 1950s to about $1.8 billion in 1992, accounting for about 21 percent of total consumer premium and business gifts combined McGrath (1995) confirmed that gift giving is a really big business It is surprising with gift giving expenditure in the year 2004 ill USA The gift giving market that is buying and giving of gifts to family and friends, is a $253 billion market That means almost one out o f everv ten dollars spent at retail is to buy a gift The precise on figures of the gift industry are great, the Ư.S Census of Retail Trade in 1985 categorizes 23,429 stores as gift-shops, each averaging annual sales -1- in excess o f $500,000 Gifts purchased in gift shops, ignoring department stores and other sources, approach $12 billion annually In order to be successful in the gift business, marketers should understand deeply all the impacted aspects of both gift giving and receiving in order to find the effective marketing implications To date, researchers have discovered many aspects of gift giving and receiving, but the impact of the interaction between consumers’ prior brand attitudes and prior giver-recipient relationship on consumer ambivalence/incongruity and on post attitudes toward a brand and post relationship realignment remains a somewhat gray area and should be exploited Gift giving is a prevalent social custom in Vietnam in all areas o f life: in family, in significant relationships, and social institutions and business people Vietnamese gifting practices are rooted in thousands o f years o f tradition and share some customs with Chinese influenced Confucianism It is acknowledged that in Vietnam the tyoes o f relationship, and gift-giving situations may influence a consumer’s involvement in the purchase Nowadays, consumers tend to engage in greater search efforts and buy more expensive, higher quality presents for rite o f passage (low-frequency, large scale events, such as a wedding) than for a rite o f progression (high-frequency, small scale event such as a birthdays) Those characteristics also have great significance and opportunities for the marketers in discovering a sizable marker, for gift business in Vietnam 1.2 Problem Statem ent and Objectives Both academic and managerial needs for future research motivate this study to find out “which variables may affect consumer’s brand attitudes and giver-recipient Ĩ ‘ ' * relationship in different gift giving/receiving situations?” Until now, most research on gift giving/receiving focused on gift giver, only few studies focus on gift receiver although gift receiver also play important role in marketing Without the receiver, the giver has no motivation to buy gifts And depending on the relationship with the receiver, the giver can decide what kind o f gift to buy for appropriate occasions Based on these foundations, marketers can find many - - implications for gift business, such as producing special kinds o f gift for the target customers in appropriate occasions, but discovering the way to change consumer brand attitudes based on recipients’ incongruity/ambivalence or the conflict between the prior brand attitudes and prior giver-recipient relationship in gift receiving has not been done yet Under the effects of different gift receiving situations, whether the gift recipient can change their attitude toward the gift’s brand and the relationship between the giver and recipient or not are the main problems which this study focuses on To understand this phenomenon, the coping psychological mechanisms which can be used to explain include: balance theory, congruity theory, and involvement theory Therefore, this thesis aims to answer the following research questions: How the different gift receiving situations focus on recipient’s prior brand attitudes and prior giver-recipient relationship effect on recipient ambivalence/incongruity and post gift receipt outcomes (the gift-recipient’s post brand attitude and giver-recipient relationship realignment)? In-which gift receiving situations, the gift-recipient has greatest change in brand attitude systematically? 3.-' ĨIÌ' which gift receiving situations, the gift-recipient has greater change in brand attitude systematically? Consequently, the specific objectives of this research are as follows: The first objective is to clarifying the concept o f consumer ambivalence Í1) •general as well as in gift giving/receiving The second objective is to contribute to ĩhe gift giving-receiving theory in terms of brand attitude change in order to find appropriate implications Furthermore, the impact o f different gift receiving situations OĨ1 brand attitude change and giver-recipient relationship realignment, resulted o f solving the gift- recipient’s incongruity and ambivalence or the conflict between the recipient’s perception on brand attitudes and prior giver-recipient relationship realignment are explored Finally, some marketing strategies based on the gift receiving context will be presented -3- receive the gift which he/she has neutral brand attitude from the givers who has great commitment or strong relationship, recipients are easily to change their brand attitude immediately with the greater level than other cases, may suggest an interesting implication for new brand (neutral brand attitude) advertising strategy Instead of focusing on the content of the message which only emphasizes the benefits o f the new product itself, advertiser may use peripheral route to persuade consumers by considering new suitable consumer product as a gift for recipients who has strong relationship with givers in different appropriate and concrete giftgiving occasions We expect this type of advertising not only appeal the gift-givers buying gifts for closely partners in appropriate gift giving occasions, but also help the gift-recipients to be aware of the new product and have high initial favorable emotion with its brand after receiving that gift 6.2.2 Suggestions fo r future research Because this thesis is one of the first attempts to explore the interaction impact of the gift recipient’s perception between prior brand attitude and prior giverrecipient relationship in changing brand attitudes as well as giver-recipient relationship in the context o f different gift receiving situations, it has a several limitations that may provide possible avenues for future research in this area First, in this study we discovered ambivalence only through in-depth interviews We need to measure it more systematically Second, we did not consider negative relationships, just weak and strong relationships A formal study o f gift-giving/receiving between people with negative relationships can be studied in the future Third, our in-dept interview methodology requires respondents to recall and retell their past gift receiving experiences, some of which occmred long time ago Some might argue that the use o f recall data to explore gift receipt and relational effects as well as brand attitude create a little distorted picture of these experiences And in our experiment, we just use the different scenarios of gift receiving situation, not the real cases o f gift receiving and the results obtained based on the -91- respondents’ imaginativeness if they were in that situation Therefore, we encourage other research to conduct the experiment with the real gift giving-receiving situations Fourth, although we feel confident in the viability of the relational outcome and brand attitude change that emerged based on the gift recipient’s perception, it is more interesting to investigate the perception of brand attitude and giver-recipient relationship realignment base on both the giver as well as the recipient to understand whether the perceived relational effects of gift receiving are the same for givers and recipients For example, perceptions o f relational realignment and post brand attitudes are likely to occur in givers as well, and this perspective is critical to understand how recipient’s reactions to the gift ultimately affect givers’ view of relational effects Fifth, the current study examine the attitude change of female undergraduate students, it is urged the future research to examine both male and female subjects in different sectors of population to see whether there is any differences between each targeted subject’s perception in changing brand attitude as well as giver-recipient relationship realignment to find the implications for each segmentation Finally, it is deeply critical if conducting future research across cultures to see the impact of different cultures on consumer’s perception in gift receiving -92- REFERENCE Abelson, Langer et al (1976), “Script processing in Attitude Formation and Decision Making , in Cognition and Social Behavior, eds John s Caroll and John W.Payne,Hillsdale, NJ: Lawrence Eribaum Andersen, Peter A (1993), “Cognitive Schemata in Personal Relationships” in Individuals in Relationships, ed Steve Duck, Newbury Park, CA: Sage, p 1-2; 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-3 -2 -1 +1 +2 +3 2.Rejoice -3 -2 -1 +1 +2 +3 3.Enchenteur -3 -2 -1 +1 +2 +3 4.Double rich -3 -2 -1 +1 +2 +3 Fa -3 -2 -1 +1 +2 +3 Kao Feather -3 -2 -1 +1 +2 +3 Feather -3 -2 -1 +1 +2 +3 Clear -3 -2 -1 +1 +2 +3 Head & Shouder -3 -2 -1 +1 +2 +3 10 Familiar -3 -2 -1 +1 +2 +3 11 Life Boy -3 -2 -1 +1 +2 +3 12 Huong Tao -3 -2 -1 +1 +2 +3 13 Pentene ProV -3 -2 -1 +1 +2 +3 14 Dove -3 -2 -1 +1 +2 +3 15 Sunsilk -3 -2 -1 +1 +2 +3 16 Xman -3 -2 -1 +1 +2 +3 -100- 17 Komachi -3 -2 -1 +1 +2 +3 18 Spring -3 -2 -1 +1 +2 +3 19 Balea -3 -2 -1 +1 +2 +3 20 Oversa -3 -2 -1 +1 +2 +3 21 Super Mild -3 -2 -1 +1 +2 +3 22 Pert Plus -3 -2 -1 +1 +2 +3 23 Novid -3 -2 -1 +1 +2 +3 24 Sexy Mild -3 -2 -1 +1 +2 +3 25 First Lady -3 -2 -1 +1 +2 +3 26 Rosery -3 -2 -1 +1 +2 +3 27 Palmolive -3 -2 -1 +1 +2 +3 28 Salon Style -3 -2 -1 +1 +2 +3 29 Sea breeze -3 -2 -1 +1 +2 +3 30 Virgine Bright -3 -2 -1 +1 +2 +3 Please evaluate the strength of the relationship between you and a people that you strong believe and can share with you everything by the following scale: -3 weakest -2 -1 +1 +2 neither strong nor weak In which: +3 indicates “strongest relationship” +2 indicates “strong relationship” +1 indicates “a little strong relationship” indicates “neither strong nor weak relationship” -1 indicates “ a little weak relationship” -2 indicates “weak relationship” -3 indicates “weakest relationship” -101- +3 strongest Please evaluate the strength of relationship between you and a people whom you rarely meet and not understand you by the scale which is similar to the question -3 weakest -2 -1 +1 +2 neither strong nor weak Personal information Full name: Age: Class: Room and building number (if you stay in the dormitory): Telephone number: +3 strongest APPENDIX 2: SCENARIO (Each scenario was delivered one week after the measurement of prior attitudes for the same respondent which consisted with that respondent’s evaluation on prior attitude toward a brand and giver-recipient relationship to get their post attitudes scores) Scenario 1: Strong relationship —favorabler attitude toward a gift’s brand Please read carefully the following scenario and imagine yourself in that situation, then answer the questions below There is a person who is close to you, that you believe and can share everything This person has nice behavior to everybody, especially to you On the occasion o f your birthday, that person presented you a gift which was covered by a nice wrap with his/her sincere attitude After the birthday-party was over, you opened that gift and realized that it was a set o f shampoo with the brand name "Echenteur" Please answer the following questions regards your thought: Evaluate the relationship between you and the gift-giver after you receive the gift from that person, by the following scales: -3 weakest -2 -1 +1 neither strong nor weak In which: +3 indicates “strongest relationship” +2 indicates “strong relationship” +1 indicates “a little strong relationship” indicates “neither strong nor weak relationship” -1 indicates “ a little weak relationship” -2 indicates “weak relationship” -3 indicates “weakest relationship” -103- +2 +3 strongest Please evaluate how much favorable o f “Enchenteur” after you received that gift from the giver mentioned in the scenario: ■3 -2 -1 n0t like neither like a* +1+2 +3 like best nor dislike In which: -3 indicates “do not like at all” -2 indicates “do not like” -1 indicates “rather not like” indicates “neither like nor dislike” +1 indicates “a little like” +2 indicates “like” +3 indicates “like best” Please indicate which statement best represents your emotion state after receiving the gift: (1) The gift was satisfactory and expected (2) The gift was satisfactory but unexpected (3) The gift was dissatisfactory and expected (4) The gift was dissatisfactory and unexpected (5) No particular emotion Scenario 2: strong relationship - neutral attitude toward a gift’s brand There is a person who is close to you, that you believe and can share everything This person has nice behavior to everybody, especially to you On the occasion o f your birthday, that person presented you a gift which was covered by a nice wrap with his/her sincere attitude After the birthday-party was over, you opened that gift and realized that it was the set o f shampoo with the brand name “Purt P lu s” (The questions are the same with the scenario 1, except the different name of the brand based on the prior attitude score) -104I p e rso n who IS close to you, that you believe and can share everything This person has nice behavior to everybody, especially to you casion o f your birth day, that person presented you a gift which was by a nice wrap with his/her sincere attitude After the birthday-party was over, you opened that gift and realized that it was the set o f shampoo with the brand name “M y H a o ” Scenario 4: Weak relationship —favorable brand attitude On the occasion o f your frien d ’s birthday, you suddenly meet again a person whom you did not see fo r a long time After the birthday party was over, that person asked your phone and address and came to see you some days later together with the gift It was the set o f shampoo with the brand “Pentene P roV ” Scenario 5: W eak relationship - neutral brand attitude On the occasion o f your frie n d ’s birthday, you suddenly meet again a person whom you did not see fo r a long time After the birthday party was over, that person asked your phone and address and came to see you some days later together with the gift It was the set o f shampoo with the brand “N ovid” Scenario 6; Weak relationship - unfavorable brand attitude On the occasion o f your frie n d ’s birthday, you suddenly meet again a person whom you did not see fo r a long time After the birthday party was over, that person asked your phone and address and came to see you some days later together with the gift It was the set o f shampoo with the brand “My Hao -105-

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