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How shopping leads to more shopping

Posted May 18 2008, 11:45 PM by Karen Datko
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This post comes from J.D. Roth at partner blog Get Rich Slowly.

Recent research at the Stanford Graduate School of Business suggests that shopping can lead to more shopping.

When such savvy marketing researchers as Uzma Khan of Stanford, Ravi Dhar of Yale, and Joel Huber of Duke noticed that shopping sometimes proceeded unchecked even in their own private domains, they decided to get to the bottom of things. Setting up a series of tests of purchasing behavior, they found that for most people buying that fateful first -- and often innocent -- item seems to open the purchasing floodgates. This realization, they say, has important implications for how stores are laid out as well as for understanding individual behavior.

These researchers indicate that shopping is a two-stage process.

    • First, a consumer deliberates over the need to purchase an initial item, weighing the pros and cons.

    • Once this initial "deliberation phase" has ended -- once a consumer has decided to buy one thing -- the consumer deliberates less about subsequent items.

    Essentially, once a person decides to buy one thing, this creates "shopping momentum," increasing the likelihood that he will buy additional items. If you pick up an impulse item (like a magazine or candy bar) as you enter a store, this can serve as a trigger to encourage you to buy more.

    I've actually noticed this tendency in my own life. If I'm at the comic book store trying to decide whether to buy the latest Superman compilation, I can escape without spending anything if I stand my ground. But if I buy one book, it's much easier for me to buy a second and a third. It's almost as if I'm not making a decision on the Superman book I had planned to buy -- it's like I'm really deciding, "Will I buy stuff today or not?"

    This study supports the notion that to avoid spending too much, it's best not to lead yourself into temptation. I shouldn't even enter the comic book store. If you like to shop for clothes, stay away from your favorite stores. Shop with a list. Try to avoid spontaneous purchases. Once you buy one thing on impulse, you're much more likely to continue buying.

    Other articles of interest at Get Rich Slowly:

    "How to spend less"

    "How retailers lure you to shop and buy"

    "Control impulse spending with the 30-day rule"

    Comments

     

    If your lack of self control  is so bad that you can't even go into a store, you need counseling.  I would love to have a 60 inch HDTV but I can walk through Best Buy without blowing $4,000.  

    It's really a simple concept.  Either you have the extra money to spend or you don't.  Once the money is spent, it's gone.  I'm tired of these people whining about how they can't avoid racking up the credit card bills.  

    That's pretty harsh, WD. I think it's easy to get carried away by impulse when we see something we really like, and staying away from the item is a simple way to avoid that. Why would we need counselling? When we live on a tight budget, we are very aware of those beautiful displays and shiny, new items which are out there. It shows good self-control to stay away from that!

    Both of the above posts are correct. If you know that you can or will succumb to impulse buys when shopping then DON"T GO SHOPPING.

    At the same time, if I had such a weakness (I don't), I would ask myself WHY I lack the self-control to not spend either what I don't have or more than I intended.

    And ultimately, self-control is what it comes down to.  The nonsense of such excuses as having an empty life, or stressful life or bad childhood, or whatever is just that, nonsense: Those are all ways to rationalize and excuse the abundant lack of self-discipline  and the "gotta have it now" mentality of many consumers.

    If you choose to buy ______(fill in the blank), even though you can't really afford it? Fine with me. It is your choice. BUT....don't complain when the bill arrives.

    When you realized succumbed to impulse buying, (which happens pretty often) just go back to the store and return it. Many people obsess about wrong purchase, few are ready to admit their mistake and return it.

    It is important to remember that many of these behaviors displayed by overspending consumers are provoked by very savvy marketers.  Please remember that you are bombarded daily with messages to trigger purchasing response.  You just have to sort through all of these marketing messages sent, realize your upcoming decision was already made by crafty marketing, and squash the purchase decision.

    It sounds harsh but I still stand behind what I said.  If your self control is so bad that you can't even go into a store without spending money, than you have emotional issues related to the spending.  Counseling will help you control those issues.  

    By the way, I'm not talking about a candy bar or a soda at the checkout aisle...I'm talking about people who spend $400 on impulse.  

    Of course, every saleman knows this.  The best time to sell another item is just after the customer purchased made a purchase.  It is expensive for a company to acquire a customer, but it is easy to sell a repeat customer.  How much junk mail do you get from campaines you have just purchased from?  Then there is the undcoating, and the extended service contract, and .. after the purchase of a new car.  And on the way through the register at Best Buy is the magazine subscription.  

    We Americans are quite obsessed with this idea (oft proven false in psychology studies and life) that we are, and must be, in absolute control of our minds at all times. And, we get a little angry at those who seem not to be (see WD) or angry at ourselves for being such dupes. That applies to all of life. As for the economy, let's be honest with ourselves! American business and ad agencies would cease to exist as we know it without the malleable American consumer. I'm sure we all could use a little counseling to strike that fine balance between keeping both our own wallets and the US economy in the black.

    Retailers has know this at least implicitly for a long time. They put things on sale to get you to come to the store knowing that you will buy more than just the item that attracted you.

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