Page 22 - Book5E

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Why We Spend
A new player in the impulse-shopping arena is the television shopping network. Recent studies show that the shopping networks may lead to more impulse buys of things you don’t really need. These shopping net- works are reaching more than 140 million households and have encour- aged a significant increase in the purchase of apparel. Research indi- cates that the more you watch shopping shows, the more likely you are to make an impulse buy. Not surprising. An important feature of these shopping networks is the program host. Viewers form an attachment with the host, who works hard to make you feel like you have something in common, that he can relate to what you like and need. This attach- ment encourages you to buy more than you normally would, to buy impulse items that you don’t really need.
People find many ways to justify impulse purchases, not the least of which is “I’ve earned it, I deserve it.”
Wants vs. Needs
Making shopping decisions is a lot like making any other decision. Sometimes knowing what to buy is easy. Sometimes it’s hard. Whether it’s something as big as deciding on a college to attend or buying a car or something as small as selecting a brand of soap or finding a thank-you gift, a decision is involved. The most important piece of information in making these decisions is whether or not you are filling a need, or simply a want. Smart shoppers make their best decisions when they have complete and accurate information. Part of that information is what is motivating you to buy. Start by asking yourself these questions: Do I need this? How will I use it? How often will I use it? Where will I store it? Questions like these help you decide if the purchase you are about to make is really needed. People who spend first and think about needs and wants later often feel broke all the time or find they can’t pay necessary bills or buy food.