Beware of “high Coupons” That Make You Spend More
Coupons save you money. And when you save money, you are happy. And that sounds great, except for one small problem: when you’re happy, you spend more, which makes all coupons counterproductive.
A 2012 study commissioned by Coupons.com and conducted by researchers at Claremont Graduate University found that subjects who shopped with a coupon were happier and more relaxed than those who did not. Their results were enough for Dr. Paul J. Zach, professor of neuroeconomics at the university, to conclude:
Research proves that not only are people who receive a coupon happier, less stressed and less anxious, but that receiving a coupon – as hard as it sounds – is physically more enjoyable than receiving a gift.
My Bank Tracker points to a problem with this: Happier shoppers are likely to spend more money. They call this the “coupon high,” and you can understand that you like saving money, so you keep a mental record and spend your savings on other things .
And a Columbia Business School study confirms this. The researchers found that relaxed shoppers did spend more. They concluded:
The study helps explain why luxury goods and services, such as high-end boutiques and luxury hotels, are often sold or provided in a relaxing setting. All things being equal, consumers will be willing to pay higher prices if marketers can weaken them first, which has important implications for marketers.
Of course, spending on stress is also important: in general, you tend to spend if you are stressed, and you tend to spend if you are relaxed. So knowing about these triggers just helps. And coupons, as modest as they seem, have a subtle way of getting you to spend more without even realizing it. Check out the full post at the link below.
Why You Are Losing Money With Supermarket Tricky Traps | My bank tracker