How Shopping Momentum Leads to More Shopping
Thursday, 28th February 2008 (by J.D.)This article is about Money Hacks, Psychology, Shopping
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. It’s best to avoid temptation entirely.
[Stanford Graduate School of Business: Buyer beware: Shopping can lead to more shopping]
Interesting. I’ve never thought about that, but it’s very true.
The accessories they try to get you to buy at big box retailers is the best example of this. You buy the low margin video game console, but then you have to buy the high profit margin games, extra controller, and extended warranty plan that they tell you is needed.
I used to have that problem, especially with gadgets. Great post, I’ll have to share this one with my wife!
-Daniel
Rather than not entering the store as the answer (because that doesn’t really help the core issue, which is fighting temptation), I give myself a “hard limit” before I enter the store… I limit myself to “the best pair of pants” e.g. if I’m pants shopping, and put away the rest. If I still feel good about the other items, I can add them to my list and go back for them later.
I definitely can see this in my own buying habits! And, sadly, I can see this reflected in my diet as well (as I’m sure many others can). If I eat healthy all day, and then I’m tempted to eat something unhealthy, if I do eat the unhealthy thing, I am MUCH more likely to then binge on other unhealthy food. It’s like I have two options: Eat completely healthily, or screw the diet and eat everything in sight.
BTW, I’m writing this as the BaconSalt ad is staring back at me.
For me, a lot of that choice has to do with the hassle of waiting in line, getting my wallet out, etc. Once I realize I want something badly enough to do that, that time is going to happen either way - so anything else adds just a second or two to the overall process. I may overthink things though!
Once I bought my house, this happened to me. Not as a direct result of the house, but because I had no choice but to change.
I was very dilligent about my savings and not spending money when I was living in my apartment. I developed an almost stingy frugal nature during college and for a couple of years after I graduated I didn’t change that habit. I never bought anything for myself, and almost had a nervous breakdown when I finally did by myself the camera I’d been wanting for quite some time.
Once I bought the house, I was forced to give up that long deliberation; for example, I did not own a washer and dryer and needed a pair for my house. There wasn’t a deliberation–it was “I need these items, I must go buy them.” I did that for a while with the things I did need (and we can debate all day long whether they were genuine “need” items–I will say that for my lifestyle and the person I am, they were need items and leave it at that. I paid cash for all of this stuff).
It “opened the floodgates” as it were. Next thing I knew, I’d purchased not one but TWO brand new apple computers within a 6 month timeframe and a host of other “fun” stuff.
It took a vacation that went way over budget to make me stop and shed those evil spending ways. But I can definitely say that the “floodgate” effect happened to me.
And this behavior is a huge reason I prefer not to receive catalogs or look at ads, as often as I can … they create dissatisfaction, which leads to want, which leads to the need for willpower — and it all relates to your previous post!
Great stuff … which is why I added your blog to my “Excellent blogs” list today: http://cheaplikeme.wordpress.com/2008/02/28/e-for-excellent/
For years I never entered the local mall.
I have a $100 mall spending limit. I always entered the local mall by cutting through Nordstrom. Always spent my limit right there and had to go. The mall was nice once I actually got to see it…but it took me six years to make it that far.
And the momentum of shopping - or impulsing - is why I use cash when shopping at brick/mortar stores, and set aside a certain amount of money for online purchases.
When the money is gone, no more buying. Pretty simple, and makes me evaluate my purchases better.
When I’m in a store and see something that I want very badly, even though I know I don’t need it, it helps me sometimes if I just carry it around the store while I do my other shopping. Keeping it close gives me time to think about what exactly I would do with it, how it would fit in my home, etc, and usually by the time I’m ready to check out, I’ve gotten over the “I want this!” urge enough to be able to put it back. I have seen my sister do this same trick with her 4 year old son, it works with him too
@Carolyn (#4) - oooh yeah. I see that when I pick up hubby’s prescriptions. If there’s something legit to buy (good sale on something we use regularly) then I’m more likely to buy other things, just because I’ve already committed myself to the hassle of standing in line, paying, and so on.
@Manda (#9) - carrying it around does give one more time to think and decide “Is admiring this now enough?” I reconsider quite a bit. It’s not uncommon for a friend to say, “Oh, you’re getting that?” and me to say, “Eh, nah.”
Then there’s the fact that carrying it is a minor hassle by itself. Does anyone else find they buy less if they have to carry the purchases a significant distance? Seriously. Ever get halfway through a big store, look at what you’re carrying, and ask, “Why on earth would I want to have to lug this home?”
On the flip side, I know I would’ve bought less stuff at Disney World if I’d had to schlep the stuff around all day. (If you’re staying in a Disney hotel, purchases can be delivered to your hotel.)
I prefer investment momentum.
By investing every month, I pay more attention to my goals.
We all can get pleasurable mental stimulation from buying things we don’t need, or we can get pleasurable mental stimulation by achieving our financial goals.
I recently purchased an HDTV. Of course, once that purchase was made, my satellite receiver needed to be upgraded, along w/ my service package. Also, I had to purchase 3 sets of cables to connect my receiver, dvd player, and stereo. Oh yeah - I had to purchase a stand for the tv to rest on.
I carefully researched the purchase of the HDTV - but, I must confess, I just paid whatever Target was charging for the other stuff!
One thing leads to another, leads to another, leads to another…
Thought provoking post,
NCN
So true. That’s why I avoid shopping unless I really need to buy something.
This is so true. It’s good to know I’m not the only one.
I have been a long time lurker to this blog and find so much interesting information. This post really resonated with me though. I find that this is so true of my habits. Just today I have been trying to justify going clothes shopping for myself for my birthday. However, I already have a spa day planned for my birthday for which I saved cash for and will drop a few hundred dollars. Somehow, I feel that I also need to get some new clothes, even though it is not in my budget. But now that I will be spending money at the spa, somehow my mind thinks its Ok to spend more. I think I will be trying to talk myself out of this for a couple of months.
I don’t think that candy bars and magazines near the front of the store are meant to be an impulse that encourages you to spend more during the rest of your visit - in fact I think its quite the opposite, that once you’re already in line and already committed to purchasing other things you want/need, you are much more likely to throw an extra $.75 candy bar or $4 magazine in with your other purchases, whereas you most likely would not have come in to the store just to buy one of those things. Likewise things displayed at the end of aisles probably work the same way - you can’t miss them, and since you already have other stuff in your cart or hands, what’s a couple more dollars for something that looks appealing? Especially since there’s no time commitment to find the items!
very interesting idea. I personally think that when you somehow weaken your financial firewall, it usually will stay weak for days. and with the continuous bombardment of attack from your desire. it is a surefail
I’ve very recently written 12 Unique Tricks To Combat Impulsive Buying. Just hope that this will be a nice complement to the concept
Totally believe this. This is why we are doing the cash thing as much as possible! Can’t overspend if you don’t have it!
This and a couple other tricks have trimmed 33% or more from our grocery bill!
I hate shopping. Except online. For some reason, I don’t look around for new things to buy when I’m online — I look for what I know we need, and either buy it, or close the browser.
I am also very resistant to being sold anything — I hate the feeling of being manipulated into making a purchase.
i’m a 100% believer in the strict shopping list. the list is made as i go through our house, and contains only what we need. neither of us is allowed to buy anything that is not on the list.
Along similar lines are gift cards. I read it somewhere (probably GRS) that people who go in with gift cards usually end up spending more than the gift card amount even though they originally didn’t plan on it. They see it as a discount rather than just walking out the door without spending any of their own cash.
Stephanie (#3) - I have this problem with eating momentum too. Maybe we should be eating the luxury item (dessert) first so that guilt stops the process…
This is why we make shopping lists for the grocery store (still not perfect, but a shot) and why I like to shop online. For some reason online doesn’t trigger it the same for me.
InvestEveryMonth wrote in comment #11:
I prefer investment momentum. By investing every month, I pay more attention to my goals. We all can get pleasurable mental stimulation from buying things we don’t need, or we can get pleasurable mental stimulation by achieving our financial goals.
I love what you just said InvestEveryMonth. I remapped the concept of debt repayment and investing in my mind, and now I go ’shopping’ at my bank. I ’shop’ online there too. Hopefully ’shopping’ will lead to even more ’shopping’ momentum as my financial balance improves.
In this case, it is a virtuous circle.
The momentum concept makes sense both ways - shopping in the conventional sense in stores, then opening the floodgates to more shopping — gosh, I bought some new clothes for a new job last week, and this week I did some more shopping - it felt good to do this, but I feel a bit guilty too — and virtuously ’shopping’ at the bank, getting financial affairs in order, topping up the emergency fund, and opening up those floodgates a little more, to better financial health.
This especially happens to me at Christmas! I try to keep everything even. Impossible!
Lisa
I don’t totally agree with the study.
If you deny your urges and desires you’re denying who you really are. In my experience, when I buy nice things it changes the way I feel about money - I feel good. Feeling good about money attracts more money. Like attracts like.
I do agree that there should be a limit to the amount of spending. This is why I have a PLAY account.
My PLAY account is for my spending money. My wife and I both have PLAY accounts. Each month we assign 5% of our combined income to a PLAY account. This money is spent on whatever we want - no questions asked. The only condition is that we only spend the 5% every month, nothing more.
This system has totally transformed our relationship with money. For more on my story, read:
How to Change Your Beliefs with Praxis, Part 2
http://www.stephenmartile.com/?p=108
see headline: Praxis, the JARS and Money
Stephen Martile
Personal Development Made Simple
http://www.stephenmartile.com
[...] Rich Slowly suggests that shopping leads to more shopping. (I agree, [...]
Buying something makes you feel good about money, which attracts more money? So buying stuff leads to more money? I guess I don’t follow that argument.
I agree with the study, though. I do notice that if I decide to buy something, I’ll research it, look at it online, etc. If I do go into the store to purchase it, I’m more likely to pick up a couple of “extra” things I had not intended to buy.
My goal is to set up a budget this month and only let myself spend a certain amount, so I won’t feel guilty when I buy clothes, shoes, or other things I don’t truly need. If I know I’m staying within a preset limit, I think I can enjoy it more, and I’ll know when I have to tell myself “no” to the extras.
I’m with TosaJen about the joys of shopping. But even though I don’t much enjoy shopping, it does seem as though there’s something to this idea.
Three different scenarios will lead me to shopping momentum:
1. Feeling in a happy mood. If I’m feeling good in general I tend to feel good about buying and so will pick up something else out of a general sense of open-handedness.
2. Finding a buy that’s unlikely to be there later. Experience has shown that if you find a pair of pants that fit well (a miracle!), you’d better buy two pair because you’ll never see them again. Also, when a really desirable item is on sale, better buy it now because you’ll never get another chance. Same is true in stores like Costco that often move stock off the shelves.
3. Going into a grocery store or a Costco without a list. Bad move!
While lists work well for me with grocery shopping and allow me to accomplish the nearly unheard-of feat of getting out of Costco for under two hundred bucks, I find they do not work in clothing stores. Maybe that’s because I shop for clothing exclusively at sales; I’ve gone in to clothing stores with a list and still come out staggering under the weight of my amazing finds. On the other hand, I only buy clothes about once a year, so I suppose it’s to be expected.
I don’t like malls, but I do buy things via catalogs; as a result I get way too many catalogs. Which I do look at, with a pad of small post-it notes at hand. If I like something, I post-it note the page. Then put the catalog away for at least a few days.
When I go back, I’m often amazed at how many things I’ve post-it-ed and how often a second look changes my mind — usualy the whole catalog just gets recycled. I usually don’t buy something until I’ve seen it in more than one catalog and still find myself “post-iting” the item.
I do the same with ecommerce sites as well as real shops, I think I end up buying only 1/3 of what seemed so desirable to me before. But talking about clothes, I found out that impulse buys are sometimes better than the ones I planned. If I need, say, a jacket and i go looking for the right one, I may end up buying second best. On the other hand, some unplanned buys are the best for me, since I find clothes that I really like and look great, which I use to death, unlike the “second best buys”.
It’s a woman’s thing, I know.
I’ve always called this “buying fever”, but I never really thought about what *starts* it. Looking back, I’d say this is pretty true of the times I’ve had it. I remember one time going to Worst Buy to pick up a computer for the kids after waiting forever for the right budget time, and before I knew it, I had a new electronic piano and a bunch of software.
This is a really interesting study. I think that it might explain the layout that I’ve seen in Target stores lately. Have you noticed that they have $1 items right by the enterance? Seems like a great way to open shoppers up for more spending!
meh, I just use a list. Granted, sometimes its a mental list of just one thing like a certain video game, but I try to always stick to it. and usually I succeed.
I’ve totally noticed this myself when I go shopping. It seems I either a)leave the store without having bought anything, or b) leave with multiple items from the store. It’s almost like the effort to shop, you don’t want to leave with just a single item.
They should do a study about having kids with you increases purchases (both from children begging/nagging and adult being distracted/time pressed to not properly evaluate purchases).
Totally true! I especially like the statement:
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?”
I know that is the case for us. If my wife and I go to the mall on the weekend “just to get out of the house.” Bad Things Happen. Even going to pick up something we need often leads to buying even more stuff. I need a pair of shoes for the gym but then realize I also need a new pair for work. My wife also realizes that she needs a new pair of black flats to wear to work too. Bam. There goes $150 on a trip that should have been $50. We spend money in the face of such temptation.
Even at the grocery store we have the same problem. Once we get the ball rolling it is going to cost me at least $50. We went to Target last night for a can of chicken stock and came out with $48 in groceries.
I guess we are all only human. Next time we’ll do better, right?
Not to pick on you, Adfecto, but one of the things that I think is saddest about our culture is that people *do* go to the mall just “to get out of the house”.
Why not the library? A park? A play? Go bowling?
Why not stay home and write a poem? Why not make a commitment to some volunteer work that will get you out of the house? Why not take swimming lessons, or guitar lessons, or voice lessons?
Again, Adfecto, I’m not trying to pick on you specifically. It just makes me sad that the culture of my time and place is “mall culture”. What a waste of all that human potential.
This happens on Amazon especially:
“People who bought the items in your cart also bought…”
“Buy it together with ___ and save xx%”
[...] the post about my little impulse purchase of an iPod Shuffle the other day, there’s an interesting look at part of the psychology of shopping over at Get Rich Slowly. In particular, the post discusses a research report which suggests that [...]
I do this, but it’s always “buy something I want and then impulse-buy something cheaper.” I’ll go in to buy deodorant or band-aids and then buy gum, never the other way around. I also do it online, because it’s cheaper to buy multiple things in one order.
A perfect example is t-shirts from the Onion store–shipping is something like $15 flat-rate for up to three items, so I ended up buying two additional shirts that I wanted less because the shipping seemed so exorbitant for one shirt. It’s the old saw that it’s not how much you spend, it’s how much you save.
“Shopping leads to more shopping.” reaaaaaaallly?!?!?
I confess I used to be a major shopper. I had the tendency to check out outlet stores, because I refuse to pay for anything at full price. I think it’s my mentality of- “hey, I didn’t pay full price for this, so I’m going to use the money I ’saved’ and buy something else.”.
I’ve learned to just buy what I need… Once in a while I’m tempted by “50% Sale” signs, but now I’m always asking- do i really need this? Will I only use this once and then it’ll disappear into the black-hole of my closet?”
I totally agree- “Shopping leads to more shopping”. I find other things to do besides going to the mall and if I do have to shop for something, I’m not hungry. There’s a tendency for me to spend more when I’m shopping on an empty stomach.
I’m with you, Yumi. I used to buy things which I wasn’t so convinced about because cheap or on sale and then I loathed them. Now I just buy less, whether on sale or not, choosing better. It’s so simple.
I know a person who can’t resist sales and thends to overstuff her home. Clutter bad!
I find this to be true, especially when it comes to eating out/visiting drive thru’s.
My PLAY account is for my spending money. My wife and I both have PLAY accounts. Each month we assign 5% of our combined income to a PLAY account. This money is spent on whatever we want - no questions asked. The only condition is that we only spend the 5% every month, nothing more.
This system has totally transformed our relationship with money. - Stephen Martile
I really like this idea. I need to stop being so controlling and loosen the grip I have on the finances. This is one idea I am going to implement.
[...] momentum- Get Rich Slowly recently posted on “How Shopping Momentum Leads to More Shopping” Once you make that first purchase “you’ve opened the [...]
[...] to go cold turkey. Incidentally, I was poking around at Get Rich Slowly the other day and found this post in the archives - at least there is some science behind my shameful shameful ways. BTW, Get Rich [...]
I totally agree with the study. For years I have noticed that I have Spending Seasons. That is, I deny myself shopping for anything other than food for months. The day I buy one pair of shoes (usually out of necessity), I find that two weeks later, I’ve been shopping nonstop. I still bargain hunt, and do research and stuff, but it is definitely a “season” of shopping. Once I close the season, then I don’t spend a dime until next time.
Some things that helped me get this down to a dull roar:
1. Always shop with a list.
2. Be a smart shopper - know how much things are. During the off-season, I still go into stores and I do price research. I go online and price things. I just have a no-purchase policy. It’s hard, but it works.
3. Have a scope to the spending season - is it just clothes? holiday gifts? household items? I find I spend less if it isn’t a free-for-all.
4. Only shop at certain times of year. For me, it’s the holidays (including some little ones - labor day, etc.), birthday time, or on vacation. That’s it. The rest of the year, I don’t shop.
5. Challenge yourself with gift cards. I love gift cards because I use them as an opener to Spending Season. If I have a bunch of gift cards, I try to contain shopping to just what’s on them. Nothing more. It’s like a game. And - I try to use my gift cards only to buy things I would never otherwise buy. This keeps me from buying these things during a regular spending season.
6. Always walk into the store with a set spending limit.
7. Shop cash only. I once bought a computer at Sam’s club with cash… it hurts to part with a huge wad like that. Kept me from spending another dime, though.
These things keep my spending under control. Also, over the years I’ve been able to develop good willpower. I can window shop for 6 hours. I don’t call it window shopping now, I just call it “research”.