Research has revealed that 75 per cent of businesses are shunning the double dip recession by increasing their corporate hospitality spend to improve relations with key contacts.
The survey, of over 1,000 people, also found that six out of 10 companies have upped their spend on marketing and promotional items in 2012. Of that group, 37 per cent have increased their budget by over a fifth.
When considering promotional gifts, the study also revealed 45 per cent of businesses were more inclined to purchase unique or personalised gifts as opposed to more generic items.
The growth in the gifting sector reveals that the business mantra – ‘you have to speculate to accumulate’ – is more prevalent that ever.
Dr Ashley Weinberg, senior lecturer in psychology at the University of Salford, said: “In sales ‘we buy from people we like’ and so, at a very basic level, some potential consumers may well feel a little emotional boost from an organisation offering them something without charge.
“Even for those who decline the offer of a gift or hospitality, there is some perception that the organisation who offered it is one that we’re likely to be more open to in future.
“In this case, we have created our own unwritten understanding – or psychological contract – that raises our expectations of the organisation and means we may be more positively disposed to them.”
The survey – conducted by Leighmans.com, the independent promotional gift specialist – revealed that businesses have boosted spending in this area over the past 12 months, compared with 2011, despite misconceptions about it reducing.
Leighmans.com founder, Darren Leigh, said: “Far from the pre-conceived notion that marketing and entertainment are the first things to be cut when the going gets tough, it actually appears businesses are investing more into the development and maintenance of relationships through entertainment and effective promotions.
“Building business relationships is vital. It can be done through meetings and entertaining and also through carefully selected gifts to existing or potential new business leads. It’s appreciated because it not only represents a financial investment, but also shows empathy and the fact you have invested time into trying to get into the other person’s head to give them something they want. That helps to create and build relationships, which are vital for ongoing business.”
Speaking of human behaviour, Dr Weinberg said: “Perhaps somewhere in between feeling really positive and just as negative, is the vague notion that we might feel indebted, as this organisation has already given us something which is of value. It is not quite an obligation, but it can certainly affect that psychological contract when we come to deciding where to buy from.”
Bury-based Leighmans.com provides a variety of high-end gifts and gadgets for a wide range of clients, including major blue-chip companies such as Deutsche Bank.
For further information, please visit www.leighmans.com.
Published on: March 23rd, 2011
