Filed under: Consumer experience, Competitive strategy, Marketing and advertising, Personal finance
The New York Times reports on a study in The Journal of Commercial Research which concludes that consumers will spend more if they think about how much money they have right before shopping. Specifically, supermarket shoppers surveyed who thought about their wealth before buying spent 36% more than those who did not.
This study suggests that people spend based on how much they think they have — what I would call their “cognitive wealth reserves.” In one experiment, 55 shoppers at a supermarket in Cambridge, MA were asked a series of nosy questions about their wallets: Did they have any library cards? Did they carry pictures or cash? How many other wallets did they own?
An equal number were asked similar questions about their financial portfolios instead.
Continue reading Thinking about your wealth makes you spend 36% more
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