Why Spending a Thousand Bucks Can Make You Feel Like a Million – Bloomberg 11-26-13

Salient to Investors:

New marketing research shows how we shop has as much to do with our mental state as with our material needs. People spend because they are sad or are feeling guilty or insecure.

Martin Lindstrom says there is a direct correlation between lack of self-esteem and the brands you buy – the less self-esteem, the more brands bought.

JoAndrea Hoegg at University of British Columbia and the Journal of Consumer Psychology said shoppers who find their usual size too small don’t buy the offending clothes, but buy other items without sizes that make them feel attractive.

Paco Underhill at Envirosell advises never to shop tired or hungry.

Scott Rick at University of Michigan studies have long shown that sadness can make you looser with the purse strings but that is not all bad, because going to the mall boosts the moods of sad shoppers by giving them a feeling of control.

Read the full article at http://www.bloomberg.com/news/2013-11-26/why-spending-a-thousand-bucks-can-make-you-feel-like-a-million.html

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