Gift card

Video Transcription

Welcome, today we are going to talk to you guys about gift cards. One thing we found in history is that Blockbuster was the first company to introduce a gift card program. Another thing found out is that it was actually created to replace gift certificates because when colored printers came out, people were trying to make copies of gift certificates. It made it real hard for companies to keep track and because people were making fake gift certificates is the reason why gift cards were invented, its electronic and people can't make a copy of it. The gift card is actually the second most giving gift in the united states.

There is a couple pros and cons, probably more pros than cons. The advantages of a gift card is that it creates a lot of loyalty for that business. If someone gives you a gift for your company, they have no other option but to use that gift card to buy something in your store. So that is one of the major advantages of a gift card, it creates that loyalty. It is very easy to use, especially for the holiday season, if they don't know what kind of gift their friend wants a TV, or that DVD player. The fact that they can say "you know what? How's about I just get them a gift card and they can just go to that store and buy whatever they want.

Some cons of a gift card is that sometimes or some of them have expiration dates. So you have to use it in a specific time frame. It is also an obligation because sometimes you may give a friend a gift card, but maybe they don't have anything they want to buy at that store. So it creates that obligation were they have buy something at that store, but again it has more pros than cons.

Thanks.