Being out of school for a long time, I decided to do some personal educating. I am learning some interesting things regarding shopping and the psychology around shopping. I won't bore you with too many specifics, but I wanted to share some things I found while flipping through fashion magazines, taking finance classes and reading articles about shopping. I was surprised at how much I found relating to counteract the guilt around overspending or buying something you shouldn't. For example...
The magazine had price ranges from $20-$600. Of course, I only want everything over $300! The magazine is splattered with ads about why you should shop. My favorite ad says this, "My ex-fiance just got married. Fill the Void." Then it has a picture of a $135 purse that you should buy, of course, to fill the void of being left behind.
I am a shopper. I love to shop, I do it in any emotion, joy, sadness, anger, boredom. Ask almost anyone, they will confirm it. I like the empowerment and the freedom. In that "happy place," I can be anyone I want, with no worries, depending on what I buy. Sounds cheesy, but it's true.
Recently, I was taking a class with Dave Ramsey, called Financial Peace University.
According to a Nightline study that Dave referenced in
this lesson, guess what happened to the average cost per sale when McDonald's began
accepting credit cards? It went up by 47%! That is an amazing jump. The two current options for processing a credit card are: swiping vs waving. It plays into the psychology of the way you shop - when you wave your card over a merchant machine using your RFID (radio frequency identification)
it takes less time. There aren't as many visual cues that you are spending money. Yes, you know you are spending, but it makes it that much easier to shop!
According to Denis G. Kelly, the author of "The Official Identity Theft Prevention Handbook, "RFID technology tends to cut the overall transaction time (of a credit card purchase) in half." As you can see, you have less time to think about the total price.
One other sneaky thing I found out about in my reading about psychology around shopping...don't shop with a basket! Shop with a cart! Ironically, I always picked up a basket every time I went shopping at a department store, thinking I'd spend less. I always walked out with a lot and a sore arm. Turns out, you spend more when you pick up a basket, due to the grip on the basket.
A study done by the Journal of Marketing Research states: We demonstrate that arm flexor contraction makes individuals more likely to choose immediately pleasing options. Read the Time article below for more fascinating reasons why you should shop with a cart, not a basket!
A study done by the Journal of Marketing Research states: We demonstrate that arm flexor contraction makes individuals more likely to choose immediately pleasing options. Read the Time article below for more fascinating reasons why you should shop with a cart, not a basket!
I encourage everyone to watch out for things you may not have noticed before or even just what triggers your shopping and spending. My next post will talk about how you can find good deals on almost everything, movies, groceries, trips, music, etc. This will probably be my favorite post, because I am more a deal-a-holic, than a shop-a-holic, which also has it's downfalls. That's another one to be concious of, you guys!
Lucky Magazine, 2012 ad
Dave Ramsey - Financial Peace University, 2012
MSN Risks of 'swipe and go' credit cards 2/21/2012 By Christina Couch http://money.msn.com/credit-cards/risks-of-swipe-and-go-credit-cards-indexcreditcards.aspx
Study: Why You Should Shop for Groceries with a Cart, Not a Basket
http://business.time.com/2011/07/20/study-why-you-should-shop-for-groceries-with-a-cart-not-a-basket/#ixzz2VkFOxoza
