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I believe that they will put a positive boost on your relationship with them no matter what you get them. However, of you get them one that is their favorite style and color, then the boost may be higher.
If you give them a preferred gift, from my experience you get a pretty significant boost to friendship. I gifted a preferred present to static when we were only friends and he gave me his picture, so it is definitely worth it to look up what gifts each villager likes
Yup,the villagers definitely appreciate the right gift.You'll know you gave them a really good gift if they say something like "how did you know exactly what I wanted?" or something similar after they open your gift.I've received a lot of villager pics from giving good birthday presents.Here's a helpful place to find gifts for your villagers:
I'm pretty sure if you give them the right gift it can give them a boost in your friendship with them. I think they appreciate if it's wrapped too. I'm pretty sure there's a guide out there if you just search the villager's name and birthday gift guide alongside it. Keep in mind that if you get them something that they like, they'll probably put it in their house or put it on straight away if it's clothing.