Due to the proliferation of choices and brands, accessibility to information, and new communication mediums, consumer behavior, particularly decision-making processes, has been altered by the spending power of various segments. In the Indian environment, although product appearance has been identified as a significant factor in influencing customer behavior, its effect on decision making when combined with other factors such as cost, features, and intrinsic psychological factors has not been studied thoroughly. This study aims to highlight consumers' perspective on a curated gift-box service in Sikkim. Focusing on gifting during special occasions, impulse buying, and self-gift opportunities, this study stands on the possibility that there is a need for such service in the market.
TopIntroduction
Many societies' cultures have the tradition of gift-giving, where millions of dollars are spent on presents each year. The act of choosing an item or service to present as a gift to an individual on a specific occasion is known as gift-giving. Gift-giving is a social, cultural, and economic experience. It is a material and social contact interaction shared by all human societies and is crucial for sustaining social contact and sharing emotions. A gift is described as “anything that is voluntarily transferred by one person to another without recompense” in Webster's Third New International Dictionary.
Given that a partnership is unique, choosing a gift depends on the situation and the relationship, making the event personal (Sherry, 1983). Culture plays a significant role in how people behave while receiving gifts. In India, women are generally critical participants in the gift-curation and -purchasing process. Although it appears that most gift-giving research focuses on interpersonal gift-giving and gift theory, by its very nature, emphasizes interpersonal relationships (Davies et al., 2010), people can still purchase gifts for themselves, and the idea that people can accept gifts for themselves is debatable in the marketing literature (Schiffman & Cohn, 2009). The process of gifting may be unrestricted to special occasions. It is also done to praise someone, enjoy special days, mitigate tension, show friendliness, and even inspire oneself. Faure and Mick (1993) argued that progress and loss can be critical factors to self-reward. The product features and benefits, the intrinsic brand value, and prices are some of the things that encourage and influence the decision-making behavior of consumers.
In the financial year 2019, the average per capita income in India's northeastern state of Sikkim was around 358 thousand Indian Rupees. It significantly impacts the spending behavior of people within the community, as they voluntarily support local businesses. Between 2015-16 and 2019-20, Sikkim's Gross State Domestic Product (GSDP) grew by 15.86%. The secondary sector contributed 62.78% of the state's GSVA in 2019-20. The tertiary sector came in second with 27.02%, led by the primary sector with 10.20%. Furthermore, between 2011-12 and 2019-20, the primary sector grew at the highest rate of the three, with a CAGR of 16.76% (www.ibef.org). Sikkim is a mountainous state in Northeastern India (Saha & Saha, 2022). It has an area of 7,096 km2. The state has four districts. Nepalese, Lepchas, and Bhutias are the natives of this state. However, due to the opening of many pharmaceutical companies, people from different states reside in Sikkim and earn their livelihoods (Saha et al., 2022). Orchids, abundantly found in Sikkim, are often used as decorative items for different occasions and gifts (Sharma et al., 2020).
Most people express the significance of purchasing gifts for one another, yet they are confounded by the possibilities of choosing the right gift. Due to the availability of specialty products, it is easier to purchase items during events like parties or baby showers. However, choosing presents on a specific budget for birthdays, anniversaries, Mother's Day, Father's Day, Valentine's Day, and other occasions can be challenging due to various choices and categories. Thus, most people tend to ‘settle’ for products that are easily accessible, impersonal, or un-customized.
Understanding customer sentiments in the scope of gifting has latency potential. Gifting avenues can be broadly categorized into specific gifts for loved ones and self-gifting during specific occasions and unexpected purchases. There needs to be more studies and research in the field of consumer behavior related to the gifting behavior of people. Hence, this study highlights the consumers’ perspective on a curated gift-box service in Sikkim.