Within the theoretical framework of modern interactionism, the study focuses on the influence of situational factors on Japanese gift-giving market, a market rife with subtle nuance and arcane conventions. ANO VA is used to examine the significance and the magnitude of situational influence on Japanese gift-giving behavior and regression analysis is used to examine in greater detail the nature of the situational influence. The findings show significant situational main and interaction effects and demonstrate an ability to transcend product-based segmentation methods by identifying products that, although they are dissimilar from a product attribute perspective, satisfy similar needs and are directly competitive from a situational perspective. The study is among the first to examine situational influence outside of the US market.