Retailer´s optimal strategy of gift card under nonlinear utility function

More and more enterprises are willing to use gift cards for product promotion. In this paper, we assume that the consumer utility function is a nonlinear utility function based on the previous research. We describe consumers´ purchasing behavior without a spending constraint from the perspective of consumers´ utility and develop a model to derive the optimal purchase amount threshold, gift card value under single gift card and two gift cards. In a certain extent, this paper makes up for the lack of gift cards in the theoretical research.