“Studies show how to be a better consumer”
Gregory Karp’s article in the June 30th Chicago Tribune discusses some of the many studies about consumer behavior.
“There’s a whole area of academic study about consumer behavior that examines not what we buy, but why.” Most of us can learn how to make better decision from some of these studies. He discusses how some of our actions impact our choices.
“…participating in online social networks can raise your self-esteem. “ Heightened feelings of self-worth “…can lead to impulsive and indulgent behavior, poor traits.” “…greater social network use was associated with a higher body mass index, increased binge eating, lower credit scores and higher levels of credit card debt…” “The self-esteem and self-control effects did not seem to affect those with weak ties to their network.
“…for people trying to spend less and save more” they should consolidated their accounts rather than have multiple accounts for different purposes. Some examples of multiple accounts include: vacation, new car, special celebrations and vacation homes. “Individuals will save more and spend less when they have a single account. “ “Multiple accounts create vagueness about how much money you really have, making it easier to justify expenditures you shouldn’t make.…” Mr Karp suggests that if you must use multiple accounts, use financial software. This will provide a consolidated view of all your accounts.
“Physical acts of completion can provide consumers with a sense of closure that makes them happier with their purchases…” “That’s as opposed to revisiting the decision and continually reassessing the options.” “Consumers are less likely to be satisfied with a purchase when they compare it to other options.” “Physical acts of closure enable consumers to perceive a difficult decision as complete and limit their tendency to compare their selection with the options they have rejected.”
