Why We Spend What We DO

Economists used to think that people rationally purchased what they needed.

For heaven sakes, we all knew that’s a crock, but of course those guys didn't consider human nature-- until they ran a series of tests. 

They did, and lo and behold, the results came out showing that people were hardly rational. In fact they were wacky, shaking like a Slinky on slippery steps.  Better yet, they discovered some cool information.

Did you know that clenching our muscles can actually boost our willingness to avoid a bad transaction?

According to Gregory Karp from the Orlando Sentinel, if you’re in a store facing something tempting that you know you shouldn’t buy, firming your fists, calves, biceps, any muscle all, should help you resist.

Great news you say!  I do too.  But other researchers found that people have a limited reservoir of willpower.

That means if you resist one transaction earlier in the day, you might not be able to resist it later...

Another study discovered that “Keeping up with the Joneses fuels spending.”

Well I kind of guessed that, didn’t you?  I don't actually know anyone named Jones or anyone else that I want to copy, but someone must've influenced me. 

I know I didn't come up with tearing down wallpaper and hiring a painter all by myself.  Maybe I just saw it everywhere but the place where I lived.

Now this next one will blow your mind.  What’s the psychology of spending on ourselves vs. others?

Researchers found that people, who feel more powerful when they’re buying, spend more on themselves and less on others.

That sounds about right.   High powered people are more self-centered, but this isn't the mind blowing part.

 The next half is:                                                                

Though these high-powered people spend more on themselves, they were happier spending on others.

So powerful human beings ultimately find contentment in giving, just like Scrooge did in “The Christmas Carol.” 

Who knew Dickens already figured this out?

And ONE more thing while we're discussing consumers.        

Scientists also discovered that ovulating women buy sexier clothes during those few days of the month than at any other time.  And the sexier they became, the sexier other women, who were also ovulating, dressed around them.

It seems the entire group got so excited, they're all out hunting for tight, revealing clothes.
How’s that for a reason to shop?

Maybe that’s why Macy’s has their annual sale every weekend?
Shhh, don’t tell them.  They don’t know we figured this out.

And now that we learned that we no longer buy what we need and that selfish people are happier purchasing for others, scientists created all kinds of reasons to grab that plastic and head out the door.

Maybe the easiest way is finding a good excuse. 

I can pretend I'm one of those passengers on that nightmarish Carnival Cruise.  I just got off the boat, traveled home, showered, and devoured a hot meal. 
What I'm now clenching is that hot little refund check in my hand.

Suddenly I'm one of the Joneses, ordered to go forth in the world, bring home the goods, and make the rest of you wannabes spend.

Oh, I see you're clenching.  All of you.  But I'll be back next week.