Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

Exercise 8

A recent study by Web Mystery Shoppers International indicates that holiday gift cards are becoming increasingly popular at online retailers. Two years ago, online shoppers had to really hunt at most e-retailers' sites to purchase a gift certificate, but today it is easier to purchase gift cards online than at traditional retail outlets. Do you think online gift cards are merely a fad? Explain carefully.