| Know the holiday retail and spending trends | | | | products are not in mint condition. |
| With the increase in gas prices, and the slow | | | | - Compare prices of the same product on |
| down of the housing market, you may think | | | | different website. |
| consumers will cut down on their holiday spending | | | | - Check the privacy policy to make sure the |
| in 2006. But many reports and surveys have | | | | website will not share your personal information |
| shown these concerns will have little to no impact | | | | with anyone. |
| on what consumers will spend this year. According | | | | - Pay with a credit card. Credit cards offer |
| to a report from the Radio Advertising Bureau, | | | | consumers the most protection. Do not send |
| consumers have withstood challenges this year | | | | cash! |
| from energy costs, slow growth in jobs and | | | | - Use a secure browser. Buy only from websites |
| softness in the housing market, and they will | | | | that offer secure payments. |
| continue to be bullish about the economy and their | | | | - Consider shipping and handling costs. |
| own financial well-being. Overall spending is | | | | - Print records of your online transactions. |
| expected to be up for many key categories. | | | | (receipts, confirmation e-mails, bank statements, |
| Gift Cards | | | | etc.). |
| Same as last year, gift cards are expected to be | | | | - Understand the return policy. |
| the top holiday purchase this year. Last year, 66 | | | | - Check delivery dates. A FTC rule requires |
| percent of consumers bought at least one gift | | | | sellers to ship items as promised or within 30 |
| card. Gift cards are an excellent idea if you are | | | | days after the order date. |
| not sure what the person will like. However, many | | | | Retail store information for 2006 |
| people think they are too impersonal. Retailers on | | | | According to , here are their holiday picks. |
| the other hand, like gift cards. They like the idea | | | | Specialty stores like Victoria's Secret, Coach and |
| when consumers come in to use the gift cards, | | | | Aeropostale, will do very well because consumers |
| there is a good chance the consumer will want to | | | | want premium products. Another specialty store - |
| use the entire gift card balance and even spend | | | | Gap, is introducing their limited edition "Product |
| more than the gift card. | | | | Red" clothing line just in time for the holidays. |
| Department Store Credit Cards | | | | Product Red is being promoted by Oprah Winfrey |
| Everyone knows when the holiday season | | | | and Bono to raise money for AIDS victims in |
| approaches, many department stores offer | | | | Africa. says Product Red will bring a whole new |
| zero-percent financing or an additional percent off | | | | customer to Gap stores, some who have not |
| for consumer purchases. A survey conducted by | | | | shopped there in years. Huge stores like Wal-Mart |
| Roper Public Affairs, stated that when consumers | | | | and Target have already shown a holiday |
| were asked how likely they are to make a major | | | | shopping increase in October. Wal-Mart is now |
| purchase this holiday season using either a | | | | selling top notch electronics such as High Definition |
| zero-percent financing or a no payments/no | | | | (HD) televisions. JC Penny is also expected to do |
| interest offer, fewer than two in ten (18 percent) | | | | well due their large advertising budget and their |
| say it is very likely that they will. Additionally, 71 | | | | "Red Box" holiday campaign. The Red Box |
| percent responded that if they were to take | | | | campaign will feature 20 - 30 items in |
| advantage of such an offer, they would plan to | | | | advertisement across the whole country. |
| pay off the total due before incurring any interest | | | | Protecting your purchases |
| charges. | | | | If you decide to shop with a credit card, choose |
| This same survey also found a correlation | | | | one that offers a purchase protection plan. There |
| between age and income level. Ninety-five percent | | | | may be an instance that you buy a product that |
| of consumers 65 and older say they are highly | | | | you do not want or a product that breaks or falls |
| unlikely to take advantage of store credit card | | | | apart. Since many stores have a no-return or |
| offers. Twenty-five percent of consumers with | | | | return for store credit only policy, you are usually |
| household incomes $50 k or greater say they are | | | | out of luck. This is when purchase protection plans |
| very likely to take advantage of such an offer. | | | | come in. If you shop with a credit card that |
| Eighty-one percent of consumers with household | | | | offers return protection, you can receive |
| incomes $50 k or greater say they would pay off | | | | reimbursement for the purchase price even if the |
| the whole purchase before the interest is due. | | | | store of origin has a no-return policy. Return |
| If you choose to take advantage of such deals, | | | | protection programs typically involve a limit on the |
| make sure you pay the purchase off as quickly | | | | amount per item and an annual limit for the |
| as possible. Department store credit cards are | | | | cardholder. Other qualifications such as the |
| known for charging ridiculously high interest rates | | | | condition of the purchased item and the existence |
| after the promotional offer expires. If this | | | | of any return/satisfaction guarantee programs at |
| happens to you, the initial savings you received on | | | | the store may apply. These plans also offer |
| the product when you first bought it will turn into | | | | manufacturer's extended warranties. You may |
| a net loss, especially if you rack up late payment | | | | not need to buy additional warranties on major |
| fees. Online Shopping | | | | purchases because some credit card companies |
| Federal Trade Commission (FTC) offers tips for | | | | will extend the terms of the original |
| safe online shopping | | | | manufacturer's warranty. This service could save |
| - Know the seller. Confirm the online seller's | | | | you the expense of purchasing extended |
| address and phone number incase of problems | | | | warranty programs. Make sure you familiarize |
| - Know exactly what you are buying. Look out | | | | yourself with coverage restrictions before making |
| for descriptions like "refurbished," "vintage," or | | | | your final decision. |
| "close out." These terms may indicate that the | | | | |