I have been doing some shopping… Yes indeed Christmas shopping… I take the path of least resistence when it comes to shopping… Whatever I can do online, I do online… I am not part of the massive high street bunfight that way. If I do venture out, I go at times when least people are around and I always pay by debit card… This is a recipe for disaster according to a recent article in Newsweek magazine…
Apparently, if you want to spend less, you need ditch paying by card and never shop when you are sad! Ys indeed, with the festive season fully underway, I am discussing the psychology of shopping today! Let me explain further…
This article at Newsweek magazine describes some of the brain processes underlying consumer decision making. In particular, the article emphasises research showing that people tend to be willing to spend more when they pay by credit card rather than cash:
“When you hand over a stack of 20s, you have less of something tangible: your billfold is lighter. That causes a brain region [the insula] that registers negative feelings (bad smells, unfairness, social ostracism) to become more active than when you charge a purchase. Humans have evolved to pay attention to the messages the insula sends, with the result that it hurts to pay cash. There is no such feeling of loss when you pay with plastic, so the insula doesn’t react. Credit cards anesthetize the otherwise painful act of paying“.
If I put that in simple terms that we can all understand 😉 The article is saying that we do not associate much loss or negativity or ownership when we pay by card… It is anonymous. Whereas when we use hard cash, we feel a sense of loss… We loved that tenner that we are handing over, didn’t we? Just like it was a family member… 😉
The article thankfully also highlights research that shows people are willing to pay more for products when they are feeling sad — perhaps because acquiring more stuff helps them feel better about themselves.
I know and encounter many people that shop for therapy… It is a bit like going to the supermarket when you are hungry… Not a good idea…
The article also quotes a study in which participants were willing to pay significantly more for football game tickets or a restaurant voucher when using a credit card compared with cash… The odds are weighed against us… Though you can get a refund for that football match or any other purchase when you use a credit card…
You may want your money back after watching Inter Milan football star Ricardo Queresma by the way… Sorry, I know I am getting sidetracked… It is all these pent up written words that are bursting out because my blog has been video clips all week…
Yes indeed, misfiring Inter Milan winger Ricardo Quaresma has been named the winner of the 2008 ‘Bidone d’Oro’, the award given to Serie A’s worst football player, reports Agence France-Presse.
The ‘Bidone d’Oro’ is a joke award voted for on a popular radio show called Catersport on Rai’s Radio2. It is given to a player who has flattered to deceive despite a big reputation.
It’s name — which means the golden can — is a play on words with the ‘Ballon d’Or’ which recognises the best player in Europe, won this year by Manchester United’s Cristiano Ronaldo.
Anyway, back on track with the shopping psychology… spend less and be more conscientious as a shopper by ditching the credit card, using cash instead. I must say I love being paid in cash… That is something else though, isn’t it… In short, it seems that if you want to reduce your spending this festive season, you’re best off carrying cash, not cards, and staying indoors if you’re feeling down in the dumps!
