Non-Monetary Gifts

In many cases, cash is preferred to same value of non-monetary gifts as they could be easily purchased with the cash.

But in real life, people sometimes appreciate the value of the gifts more than cash.

Under what circumstances, non-monetary gifts can give bigger satisfaction than cash? Let me bring some of examples to explain those attractive non-cash items' characteristics.

First, the gift with recognition will make people happier than the equivalent amount of cash. Let's say, you have 5000 USD to give one of employees. You could either give him the cash or give him a voucher to Phuket. When you give him the travel voucher, you could gather all of employees and recognize him as a high achiever of this year. By doing this, he will be more motivated than just simply getting the cash. This non-monetary gift not only provides him with the value of 5000 USD, but also the pride of excellence in front of other people.

Second, if you give the gift which brings the extra value, it will give the bigger satisfaction. Let me use a travel voucher case again. Some people may argue that cash will be either same level of satisfaction or even bigger satisfaction if it's awarded similarly to the travel voucher in front of other people. It is not true. Because the travel voucher can bring the extra value to him that cash can't. The family trip to Phuket will satisfy his family members and he will have the extra satisfaction by their satisfaction. This kind of happiness can't be brought by cash. Besides, his memory in Phuket can't be replaced by anything, which means his marginal satisfaction will not easily come down to the original level for a long time. Unlike the travel voucher, the happiness from cash will only increase the marginal utility for a short time of period, but come back to the original level quickly.

Third, the gift with sincerity. I remember when I got a handkerchief as a birthday gift. It probably cost about only