Why scarce goods can be psychologically more satisfying...

I have two girl friends who are constantly competing to see who can find the most desirable but rare item, be it a scrap of vintage lace, ethnic bangle or piece of studio pottery. 

The most prized purchase is, I’m afraid to say, always a one-off piece that the other hasn’t a hope in hell of acquiring. Both are stylish women, but neither is massively well-off. 

So their treasure-hunting requires time, ingenuity and a dose of deviance that consists of never, ever divulging where they got something from. 

Now forthcoming research* from the US sheds some light on this particular type of consumption.

Photo credit http://mrs-sun.deviantart.com/

When people experience economic hardship they attempt to alleviate the negative feelings this induces by acquiring goods that are hard to come by.                        Research published in the Journal of Consumer Research shows that financially deprived consumers prefer goods that are relatively unavailable to others, to offset the feeling that they are comparatively deprived. Many people judge how well-off they feel by comparing themselves to others. When experiencing financial hardship people render such comparisons impossible by acquiring goods for which there is no direct comparitor.

Social comparison is a powerful psychological force. How rich, attractive or successful we feel is always relative, depending on who we are comparing ourselves with, or whether we are comparing our present self with our past self. One person may be quite wealthy, but may actually not feel well-off because a) they are not as rich as their affluent friends or b) they are not as affluent as they have been in past times.

This is reflected in the questions asked in the Financial Wellbeing Index in the aforementioned study, reproduced here:

1. Compared to my financial position last year, my financial position this year is:

Much worse 1 2 3 4 5 6 7 8 9 Much better.

2. In comparison to most of my peers, I am financially:

Much worse off 1 2 3 4 5 6 7 8 9 Much better off.

3. Compared to my material possessions last year, my material possessions this year are generally:

Much worse 1 2 3 4 5 6 7 8 9 Much better.

4. In comparison to most of my peers’ material possessions, my material possessions are:

Much worse 1 2 3 4 5 6 7 8 9 Much better.

5. In comparison to last year, my ability to spend money freely is:

More constrained 1 2 3 4 5 6 7 8 9 Less constrained.

Sharma & Alter (2012) used this scale to measure how deprived the participants felt and found that deprived consumers preferred scarce (vs.abundant) goods when those goods seem relatively unavailable to others in their environment. If you find yourself selecting low scores on these items you may have a tendency to over-compare.

Comparing yourself with others is clearly a dangerous process and one unlikely to have a happy ending. Rest assured there will always, yes always, be someone better off or more beautiful than you. 

Women’s magazines are a classic example – after being saturated with images of impossibly perfect airbrushed models the female reader inevitably feels worse about her looks. 

And when it comes to the state of our finances research suggest that consumers might seek scarce goods for retributive purposes. By acquiring goods that others can’t get hold of people can “get even” with their better-off peers. By consuming limited resources, they necessarily deprive others from enjoying the same privilege. Once girl friend A has snapped up that classic french 1920’s beaded clutch, there’s one less out there for girl friend B to chance upon.

The authors of the US study claim that deprived consumers acquire scarce products to set themselves apart from their financially superior peers. By stressing differences between themselves and those peers, consumers can mitigate feelings of self-threat, because after all evaluations based on social comparison are only meaningful when they are formed relative to similar peers. In other words, acquiring scarce goods might diminish feelings of inferiority relative to financially superior peers by creating the sense that those peers are no longer suitable comparison standards. Then again there's just that satisfying feeling that comes from being an individual and not being swept along with the masses.....

* JOURNAL OF CONSUMER RESEARCH, Vol. 39 ● October 2012

The Psychology of...the Handbag!

'No, Alan, not like that, hook the handbag over your wrist and keep your palm turned upwards.'

Of all the directions I thought my career might take me, teaching Alan Titchmarsh to carry a handbag was not one I had imagined.
But I found myself doing just that recently, when recording a piece about handbags for the Alan Titchmarsh show (on ITV today, 3pm). 
Alan was such a good sport and minced onto the set carrying a gorgeous little snakeskin number, one of many designer and vintage handbags featured whose extortionate prices raised a few 'ooohs' from the studio audience.


We live in a time when the handbag has become the ultimate statement piece for women. And even in these days of austerity many women seem reluctant to ditch the designer bag. In fact for many, a touch of regulated self-indulgence feels more necessary than ever.

Why? 
Here are a few of my theories. Or what I call my 'handbagology':

Status symbols

“I loved all the admiring glances I got from my friends when I walked in with it.”

It used to be men who advertised their status,  with the flash car or expensive watch. Now women are earning more and competing at the top they too are signalling their status to others. They choose a bag  - usually a huge in-your-face tote - that says, I’m successful, I’m expensive, I’m chic. Many women at the top assess their own and other women’s status by the handbags they use.

Rule No 1: Your bag shouldn't weight more than you do.

Compensatory consumption

My research has shown that women spend more when depressed, believing a purchase will cheer them up. They might get a brain ‘buzz’ from buying it, but it may be short-lived and will not eliminate the cause of their negative emotions. Ironically, the harder the times the more women will seek solace in this way. And probably the bigger the bag the greater the void in their lives.  But beware. In the words of my friend Jessica Chivers, ‘Happiness is NOT a handbag!’

Celebrity worship

“I saw Beyonce with it in a magazine and so I had to have it.”

We’ve seen a huge rise in the cult of the celebrity and in the desire of women to emulate them. You may not be able to get the Beckham figure, millions or footballer husband, but you can get the bag. Or one like it. Some designers are cashing in on this and using celebrities to advertise their handbags, like Coach using Gwyneth Paltrow.

Rule No 2: Don't believe if you buy the bag you'll look this good

Believing a bag is an ‘investment’

I once heard a fashionista on Woman’s Hour declaring that she ‘invests in a designer handbag each season'. We delude ourselves if we view high-priced fashion items as an ‘investment’. Most aren’t. (Just to be safe, in case the bottom drops out of the handbag market or there’s a world clutch-bag crash, I’d recommend an ISA.)

Identity

“It’s a kind of passport into the business world. It says, ‘I’m worthy of a job in fashion’”

Humans have evolved to belong to a group, we crave to be seen by others and feel part of something. An expressive wardrobe is a way of signalling not just which group you belong to (teenage groups have their own cool trends which distinguishes them from others) but which you aspire to. Many feel a designer bag makes them seen and sends a message to others: I want to be one of the Gucci crowd, I’m a Prada girl. There’s even an optimal way of carrying it to show it off to the max. The logo is always displayed, the bag hooked over the wrist, palm held upwards.

Feeling fat? The bag always fits…

If women feel the urge to shop but are feeling fat they can buy a bag and it will always fit, whereas clothes are very figure-dependent. The same goes for shoes.

The power  - and cost - of the brand

"I know a lot of women who will starve to get a handbag. I’ve got a lot of friends like that.”

I came across the comment above on an online site (theartofthebag.org). Millions of pounds of clever marketing go into promoting and advertising designer handbags, and some women will even go into debt to have their bag of desire.

Creating scarcity

Luxury brand items are now more available – at airports, on the high street, online. So the marketers create a sense of scarcity by limiting the availability of certain items. This stimulates even more desire. Brain research shows we get huge pleasure not just from getting something but from anticipating having it. The luxury brands cash in on this by creating waiting lists, making women want it more and obliterating the difference between want and need.


All goes to show that a bag is so much more than somewhere to keep your purse and your keys!

More on the psychology of shopping and tricks to make you spend...

Salesperson: "Date of birth?"

You: "23^rd March 1972"

Salesperson: "That’s amazing, that's my birthday too!"

A mere coincidence? Or a trick to make you spend?

A new study just published in the Journal of Consumer Research shows that when you share something, such as a birthday, with a salesperson you are more likely to buy from them and to  feel good about it.

The researchers found that when people found they had the same a birthday as a personal trainer they were more likely to purchase a gym membership. 

This is just another example of the unconscious psychological forces that are shaping every financial decision we make.  

It’s all down to our human need for connectedness which is so powerful that  even an incidental similarity (the same birthday, name or a shared place of birth) makes us more favourably disposed towards another person.

Perceived similarity makes us feel connected.

This need for connectedness extends to touch too. Earlier studies found that if a waitress or waiter gently touched a customer on the arm when handing over the bill, they would receive a larger tip.

I suspect that compliments work in the same way.  Shopping in London last week I was twice complimented by the sales assistant as I was paying for goods. One loved my rings, another said my glasses were cool. Of course, I left the shop in a positive frame of mind, but were their compliments a clever ploy to make sure I did?

Here's your purchase, with a whopping compliment thrown in... 

In the previous post some other tricks were highlighted. 

• Many people pop into a shop for a pint of milk only to find it’s right at the back and they have to pass racks of other tempting goodies to get there. 
• Cosmetic aisles are secluded so that women have time and space to read the labels. 
• Men’s changing rooms are easier to find because retailers know men are very likely to buy once they’ve tried.

In an earlier post I highlighted some more design tricks aimed at seducing us into spending.

• The absence of clocks in shopping centres so you lose track of time. 
• Confusing layouts so you get lost and wander into temptation territory. 
• Mirrors to slow you down. 
• Birdsong and waterfalls to slow your heart rate.

With all these wily ways it’s amazing anyone ever gets out of a shopping centre with their finances intact. Short of being mugged, it’s a sure-fire way of being fleeced. 

So next time you think you’re in control, remind yourself of some of these tricks and be on your guard!

Why materialism is bad for your marriage

Here’s a quick quiz if you’re married or have a partner:

   How important is having money and lots of things to you?

1.     Not at all important

2.     Quite important

3.     Important

4.     Very important

   How important is having money and lots of things to your partner?

1.     Not at all important

2.     Quite important

3.     Important

4.     Very important

Researchers* asked 1,734 couples in the US this question.

The answers revealed a lot about the state of people’s marriages.

If both partners were materialistic (answering 3 or 4 above) they were likely to have a rocky relationship. If both partners answered 1 or 2 their marriage was much more stable and their relationship quality higher.

The researchers concluded that materialism is bad for marriages.

Of course, this is a correlational study so the direction of causality is unknown. Materialism may affect the quality of a marriage, but a bad marriage may also increase materialism.

People in poor marriages probably engage in more compensatory consumption, turning to money and stuff to provide the fulfiment they don’t get from their relationship. I’ve known many women who’ve diverted all their desires into revamping a kitchen or restoring a barn only to discover it was actually their marriage that desperately needed renovation. If only they’d gone to Relate instead of Ikea, they could have saved a fortune and stocked up on happiness instead of granite work-tops.

What more could we possibly want darling?

In the US study 20% of marriages comprised couples who were both materialistic and admitted that money was very important to them. These couples were also better off financially, but their relationships were in a sorry state. Again, there are a multitude of reasons for this. It's easy to imagine the passion-killing effects of over-working to earn more, spending time investing in material things and not in the relationship, and a desperate need to ‘prove’ something to people because of poor self-esteem. 

No-one is saying that poverty makes people happier. Just that money makes poor marriage cement, as this ad in Private Eye years ago demonstrated:

"Spike Milligan would like to meet a rich, well-insured widow - intention: murder,"

Perhaps Spike knew that a relationship based on money wouldn’t work. Not sure we'd recommend his alternative though!

*Jason S. Carroll, Lukas R. Dean, Lindsey L. Call, Dean M. Busby. Materialism and Marriage: Couple Profiles of Congruent and Incongruent Spouses. Journal of Couple & Relationship Therapy, 2011; 10 (4): 287 DOI:10.1080/15332691.2011.613306