Shoppers actually spend more when trying to limit costs: Study
Having a list when shopping may make sense but setting a price limit often backfires, according to new research from Brigham Young University. Just thinking about prices leaves you likely to spend more than you would otherwise.
The researchers found that consumers spent up to 50% more when they started shopping with a price in mind than those who didn’t. There's no problem with budgeting, they say, but focussing too much on price and you'll end up with less in your pocket.
If we decide we’ll spend about $500 on a new TV, we look only at TVs around that price range. Of course, once we do that, we start to notice that higher-priced sets within that range have more features and better quality, so we lean toward those, boosting spending at the same time.
In one experiment, research subjects were given $6 for participating in the study and given an option to purchase a steeply discounted pen on their way out. Those who were asked how much they planned to pay spent an average of $2.10, compared to the average of $1.64 spent by those who were not asked.
“The results were always the same – a preference for higher-quality, higher-priced items,” says team leader Jeffrey Larson. “The most surprising aspect of this study was that people’s decision-making process can change so easily. Doing something as simple as asking, ‘Hey, how much would you budget for this product?’ completely changes their thinking.”
Do you look at specfic price points when shopping? Do you think you end up spending more as a result?
By Gordon Powers, MSN Money
Posted by: sjrw11 | Apr 18, 2021 8:47:24 AM
Actually, I set the specifications and price point before I look for a product. If I cannot match the two, I don't buy. Since I retired, I have added the filter of "Do I NEED this, or just want it". If it is a want, it goes on the back burner.
Posted by: CG | Apr 18, 2021 11:10:31 AM
We don't set a specific price but if we find a good deal, so much the better. That being said, nothing is bought on credit. If we can't afford it, we either wait til we have the money or buy less expensive item.
Also know where to get really good deals like outlet stores etc.
Posted by: Al-Man | Apr 18, 2021 12:12:55 PM
Its quite simple for me. If the price is higher than I want to pay, I leave it on the shelf and look somewhere else. Or I wait for the item to come on sale. I don't worry about extras, high tech garbage that isn't needed, or extra sensors and other baloney. Simple is better.
You still have to balance price for quality. But if you know full well that the exact same item can be purchased for less somewhere else,I would lean toward that after factoring in distance and such to go and get the lower priced item.
Posted by: Lindsay | Apr 18, 2021 5:46:45 PM
I never spend more than I want to, and more times than not I actually spend less. Not only do I wait for what I NEED to be on sale, I then add a discount coupon to reduce the sale price. That goes for everything from food to electronics. I only pay cash, and I save for, or I go without if it is a big ticket item. If I see something that I need, or decide that it is time to replace a worn out item I watch for it in the sale flyers, and start to save because I have found that flyers tend to repeat certain items every three months so I have three months to find a cheaper one while I am saving.
I say I am cheap, my friends say frugal, and my family says financially conscious. Take your pick but, I live on a small disability, my fridge, freezer, and pantry are always stocked and my wallet is never empty. So whatever I am doing seems to be working for me.