My Research Question

Readers that have kept up with my blog, have heard me talk about consumer behavior, psychology and impulse behavior which can lead to unpleasant things like living paycheck to paycheck.  I’ve profiled other people and reviewed the literature that others have been so fortunate to conduct before me.  Now, it’s come to the point where I’ve self-reflected in deep thought and  began to analyze the deeper reason behind the value one places in their material goods.

Before, I begin, I am not going to preach about the trials and tribulations of the consumption of material goods.  The latest crazes and technology do put a hole in our pocket, but some things are just necessary and a little moderation never hurt anyone.  However, it becomes a problem when after the purchase you experience guilt, or when the credit card bill comes and you can only manage to make the minimum payment.  My research has led me to conclude that there are two types of consumers: one being the high-materialism and other, you guessed it, low-materialism.  To clarify conventional wisdom defines materialism as the “importance ascribed to the ownership and acquisition of material goods in achieving major life goals or desired states.”  Scientists  have also gone as far as creating the Material Values Scale, which conveniently rates just how materialistic you are.  Basically the more materialistic you are, the higher you rate on this scale. 

The research I found claims that those rating on high on the Material Values Scale placed great importance on material items yet lacked the desire to better themselves.  Most of those people were less happy with their incomes, jobs and lives in general.  It might be a leap to assume that they solve their problems by just going shopping (however this is the case for many). However, I aim to explore the deeper reasons behind impulse purchases and find a correlation between dissatisfaction with one’s life and the desire to obtain material goods.  The other side of the research coin claims that those who value material items very little are ones that seek self-improvement and have a better sense of self-awareness.  I’m going to create an online questionnaire that will ask a series of questions and I hope to make the connection that those who are self-aware and comfortable with themselves will will tend to place a lower value on material goods.  Just a fun little quiz - How Materialistic Are You? (keep in mind this is just a fun quiz, not the actual Material Values Scale)

sample annotation

The Urge to Splurge. (2004, February). Chain Store Age, 80(2), 64-65. Retrieved September 20, 2010, from ABI/INFORM Global.

Julie Fitzmaurice. (2008). Splurge purchases and materialism. The Journal of Consumer Marketing, 25(6), 332-338. Retrieved September 22, 2010, from ABI/INFORM Global. (Document ID: 1564041421).

This article by Leo Shapiro explores the results of an experiment used to study consumer behavior. It found that nearly 1/3 of all consumers buy impulsively, with the median price splurge of $30. This is a useful article because it helps quantify the number of consumers that impulsively buy, which he finds to be a significantly large number. His work is then applied to how the market should advertise their products to maximize profits. A few other findings in the study conclude that men with children in the household are more likely to impulse buy. This article helps me understand the demographic of the consumer, but fails to address the psychology behind these purchases. This article would be useful in providing a foundation for understanding consumer attitudes when they are faced in a purchasing dilemma. I can use this article as a basis for conducting a research paper on consumer behavior with a specific focus on impulsive buying.

Given that my first article was short, “Splurge Purchase and Materialism” provided empirical evidence regarding the psychology behind impulse buying. The basic premise of this journal was to explore two types of consumers which the author defined as high and low-materialism. This article does a great job of delving deeper into the psychology of the consumer.

Those participants involved in the study defined splurge purchases as an item “you probably want, and don't need, and you still get it” (Fitzmaurice). This article reaffirmed what I had originally thought about impulsive buying. It revealed that the high-materialism consumer believed that material goods helped define success and were self-affirmed by their splurge purchases. When compared to low materialism consumers, the high were not any more satisfied with their income, standard of living and their life as a whole. This does not surprise me because it would seem that these high-materialism consumers are trying to compensate for the lack of substance in their lives by purchasing material items.

This article concisely and comprehensively details a research study that allows the consumer to self-evaluate their feelings after a splurge. Again, not surprisingly those that splurged were more likely to buy items that they could wear or display on themselves, and were more likely to make known to others that the product was “expensive.” However after the purchase it was the same high-material customers that reported feelings of guilt and irresponsibility, yet still continued the same behavior even while knowing the negative consequences.  I would utilize this article in a research paper and it would help provide experimental data into furthering my findings on consumer behavior. 

Living Paycheck to Paycheck

When we think about our futures as USC graduates we think of BMW’s, big mansions and BIG fat paychecks. Since we are hotshots out of college, everyone and everything is at our disposal, because we just spent the last four years of our lives at a prestigious four year university. What we do not think of, however is how at risk we are of living paycheck to paycheck...

I feel I have authority to talk about this because I have experienced it first-hand. Coming across even a small amount of money makes people feel powerful, and there’s a burning itch to spend it. I can attest to the adjustments in pay, with the adjustments in purchasing power. My most recent job working at AT&T paid me more than any job I had ever had before. I will admit to some purchases that as I look back on, I regret. To be honest, it’s hard to say where my money went, because small purchases add up, and before you know it, your paycheck is gone. I stand back, kinda pissed and look around my room searching for what I have to show for a summer long of spending. I think I’ll be searching for a long time. So I’ll give up, but to answer truthfully, I have nothing to show for it.

This topic intrigued me when a friend told me about her internship at Merrill Lynch. The financial advisor she works for said that many college students who make tons of money of out of college, usually have spending habits that eventually lead to the paycheck to paycheck lifestyle. It’s very easy to adapt to making money, and of course people want to show off the fact they can purchase the latest trends.  Making more means spending more.  Hey...if we're making $100,000/year, we have to have the house, car and clothes to show for it.  Pretty soon, the bank account dwindles and we find ourselves waiting for next week's pay.

Even if one does graduate from USC, making $60,000/year, studies indicate that it takes them only a few weeks to adjust to that pay bracket. After adjusting to the money(which I presume isn't too hard), their lifestyles also change and they begin to adapt to the new wages. This is undoubtedly tied to the virtually 0% savings rate in the U.S. Many Americans are just making so much money, they don’t know what to do with it. So they spend it.  The saying that the extra cash is burning a hole in your pocket, seems to have a literal meaning nowadays.

An article in CNN stated that nearly ½ of all Americans live paycheck to paycheck. A huge reason is that people go over their budgets and indulge in small purchases that really add up. They go out to eat and slowly but surely their bank accounts dwindle. I can relate to this because at the moment of purchase, you’re not really deducting that amount in your head because it’s just easier not to and to enjoy the instant gratification of the delicious cheeseburger you are about to enjoy.

Also a part of this obsession with eating, oftentimes it’s just convenient to grab a quick bite at a fast food chain. Since we are always on the go and balancing hectic schedules, we don’t realize just how much we spend on food. There’s also the socializing aspect where we spend small sums of money (that adds up quickly) when we go out to eat with friends. To sum this all up, no matter how secure in our careers we may be, we should always be mindful and try not to let spending habits go in over our head.

Voice Critique

Voice Critique
I was immediately drawn to Gerd’s Consumer Behavior blog because the first page contained images of trendy products, celebrities and pop culture. In one of her posts entitled “Why I Love Ikea,” Gerd lists her #5 reason as the “You cannot go to an IKEA store without stopping by the cafeteria for the Swedish meatballs.” I liked this post in particular because I also enjoy them and no trip to Ikea is complete unless I eat a tray of meatballs covered in gravy, not to mention the mashed potatoes on the side. This blogger clearly shared my obsession with food and cheap furniture. This display of personality really helps the reader get an immediate sense of the blogger's voice. The graphics posted on her blog also speaks volumes to her personality and voice.

Gerd also complements many of her blogs with relevant images or video clips, which help the readers get a better feel for the topic being blogged about. She spiced up her blog by integrating a YouTube clip of a man that lived at Ikea while his apartment was being fumigated. I thought this was a clever way for her to market her own blog, while at the same time exposing another person’s media stunt.

This blog was very conversational in nature because it usually begins each blog entry with a question. In doing this, Gerd initiates a conversation with her reading audience I chose her blog because it was very easy to navigate and browse. She effectively created a nice flow by using bulleted and numbered lists. In doing this, it brought by attention to the main points and allowed me to skim over the blog quicker. Her Ikea blog is a prime example of this. Given that she is a female student interested in pop culture/media, her persona leads me to believe that she is a typical student on a budget that shops at Ikea. This topic reflects Gerd’s personality as a blogger because she chooses topics that would be of interest to the average college student. Given that she is a college student herself, she can connect to that specific audience.

In another post, Gerd’s personality is very apparent when she blogs about the over-consumption of different products and it’s effect on the environment. Again she employs her device of bulleted lists and offers several suggestions on how to reduce pollution. Her first lists includes ridiculous items like

• “Meat consumption takes 10 times the amount of resources to produce as a corresponding amount of vegetables. Therefore; quit eating meat.
• Did you hear about the British MP who announced that he was going to quit flushing after doing “number one” on the toilet? You can do better: Stop flushing the toilet even after number two; it will save much energy and water.
• While you’re at it, quit showering.”
She engages in a casual conversation with her audience if
“you love meat too much to give it up, you like smelling nice, you think the sound of a toilet flushing is like music to your ears.”

Gerd uses humor when talking to her audience and says if they agree to the above statement, then they must heed her second bulleted list of tips. By offering the first set of lists, she sets the tone that she can be comedic about the issue, however she transitions to a more serious tone. Her second list offers more realistic and practical solutions to over consumption. At the end of the blog she speaks more to her persona by saying “Next week I become a green consumer super-hero!” and places a picture of an imaginary super hero. Again she does this to add humor and possibly relay to the audience that although she blogs about a sensitive topic, she can still be funny.

Profile Post

Profile
Phillip Graves contributes to a blog entitled the Consumer Behavior Blog in which he explores the psychology of why consumers make certain purchases. This blog was of great interest to me because it not only focused on consumer behavior but also critiques the marketing strategies of certain companies. He said that market research is ineffective because consumers are usually not knowledgeable and there are so many differing ideas that coming to a consensus is impossible. In relation to my topic, Phillip focuses on the company rather than the consumer. This can give some good insight on why customer's take the actions that they do.

Phillip’s blog is academic in nature, since he claims to be a consumer behavior expert. He authored a book called Consumer.ology where he discusses the psychology behind why consumer’s make the decisions they do. He again stresses that market research is ineffective and that the key to understanding consumer’s lies in their psychology. His writing and studies are based in the United Kingdom, where he has consulted for various corporations. Although I could not find Phillip on Technorati, there were a good amount of responses to his blog entries. Phillip frequently posts to his blog on a range of topics that he seems to be very knowledgeable about. I find that he uses his blog as a tool to market his books.

This subject fascinates me and I hope to draw from his knowledge to come to a better understanding of the topic for myself. Phillip defies generally accepted marketing principles and claims that the standard way of thinking is incorrect. His blog counters the status quo and forces the reader to challenge their preconceived notion of consumer behavior and marketing.

I hope to mirror my blog as Phillip’s writes his, because he delves into topics that I also hope to analyze in my own blog. He authored one entitled “The Consumer Need Myth and Why Customers Really Buy.” This is the topic of my first blog and Phillip came to the conclusion that companies must target either a physical or emotional need of the customer. Phillip discusses that companies are usually out in the market to fill a need, but Philip argues that usually consumers don’t really know what they need, rather they know very little about the product they purchase. Moreover, the act of buying something is a goal that is set out in a person’s mind, and after the act is done, our brain releases the feel good hormone, dopamine, reacting to the idea that we have successfully completed a goal. He explores the psychology of “shopping” and discusses how it has always been beneficial to obtain material possessions. For example tools and “mechanisms for protecting ourselves” has always been valuable to us. Presently, material items that we purchase are a way of “protecting” our image and preventing us from being too much of an outsider.

The layout and organizational structure of Philips blog makes it easy for the reader to navigate. It is very simplistic, but not overly so that it makes the reader want to leave the site. His homepage contains only 3 tabs for external links, but it effectively organizes his blog. My own blog will draw information from Phillip’s blog; however, I will not have an in depth working knowledge of the topic. I hope to draw from his topics and expand his research by finding other scholars that agree or disagree with his opinions.

Hello World

Hello World

After googling “impulsive buying,” I skip over the Wikipedia link and click on a more a reliable, businessdictioanry.com. This website defined it as “Spur of the moment, unplanned decision to buy, made just before a purchase.” The real take-away from that search was the last part of the definition stating that “usually about 80% of the time) )[it can] lead to problems such as financial difficulties, family disapproval, or feeling of guilt or disappointment.” Sure, impulsive buying might not be as harmful for things like chocolate or Hometown Buffet, but larger purchases can reveal a deeper knowledge about one’s financial stability and spending habits.


After working in retail, I have come to the conclusion that consumers are usually uneducated and frivolous in their decision making. Customers go after the new “hot” or “must have” item without really acknowledging the real reason for that purchase. Everyone and their mother, grandmother and great grandmother wants the IPhone. Do they know how to use it or even turn it on for that matter? You’d be surprised at the questions I get. “Is WebBrowsing the same as email?” I’ve come to the realization that people just buy things for no other reason than maintaining the status quo and to have something to show off to their friends. It is a marker of prestige and one’s ability to make that extravagant purchase at that point in time. It doesn’t matter if you can’t afford it! That’s beside the point…


Time and time again I have witnessed this obsession with material wealth. My most recent job as a sales associate at AT&T qualifies me to analyze the actions made by most consumers. People, unable to pay the past due balances on their account have it set in their mind they must purchase top of the line PDA phones, at any cost. Most people living paycheck to paycheck insist on having these items as well. This is evident to me when I hear I have to wait a week because “they don’t get paid until next Friday…” (Most people find no shame in telling me this). I feel like a marriage counselor when couples argue (in front of me) that they can't afford this, OH WAIT, yes they can, they just have to wait for their checks to clear. Now you might be skeptical and wonder if a phone is really an impulse buy , and I would say DEFINITELY YES!


Many of my customers are pulled in by a “sales greet” and then convinced to buy a phone. You would think that something as serious as a cell phone, binding you into a two year contract would warrant someone to think twice. I would then urge you to spend a few hours in my store and you will change your mind set.


Impulsive buying and consumer behavior is a topic that I’ve always thought about passionately in my head, but I’ve never actually sat down and organized my thoughts. Through this blog I hope to answer the question of WHY? WHY do people purchase things they know they cannot afford? It blows my mind and I don’t think I will ever find an answer. It’s actually common knowledge that the poor tend to spend their money and the rich tend to invest, which speaks volumes for capitalist society. Please don’t get me wrong and draw the conclusion that I think ‘all spending is bad.” We need “spenders” in our system to make the world go round. But if we brought to light the “not so smart choices” of these spenders, maybe our world would be a better place.


Please join me as I delve into a topic that I know you’ve been guilty of at one point or another. As this blog is a continuous work in process, I hope to touch a nerve with a few readers and together learn how to make better financial decisions. The topic of personal finance is taboo and will undoubtedly make us uncomfortable to talk about it out loud. We will not understand the topic or change our circumstances unless we force ourselves to sit down and assess our own financial decisions. So please, if something I say sparks a nerve with you, comment and make your voice heard!

Trifecta

 Hello World
After googling “impulsive buying,” I skip over the Wikipedia link and click on a more a reliable, businessdictioanry.com. This website defined it as “Spur of the moment, unplanned decision to buy, made just before a purchase.” The real take-away from that search was the last part of the definition stating that “usually about 80% of the time) )[it can] lead to problems such as financial difficulties, family disapproval, or feeling of guilt or disappointment.” Sure, impulsive buying might not be as harmful for things like chocolate or Hometown Buffet, but larger purchases can reveal a deeper knowledge about one’s financial stability and spending habits.

After working in retail, I have come to the conclusion that consumers are usually uneducated and frivolous in their decision making. Customers go after the new “hot” or “must have” item without really acknowledging the real reason for that purchase. Everyone and their mother, grandmother and great grandmother wants the IPhone. Do they know how to use it or even turn it on for that matter? You’d be surprised at the questions I get. “Is WebBrowsing the same as email?” I’ve come to the realization that people just buy things for no other reason than maintaining the status quo and to have something to show off to their friends. It is a marker of prestige and one’s ability to make that extravagant purchase at that point in time. It doesn’t matter if you can’t afford it! That’s beside the point…

Time and time again I have witnessed this obsession with material wealth. My most recent job as a sales associate at AT&T qualifies me to analyze the actions made by most consumers. People, unable to pay the past due balances on their account have it set in their mind they must purchase top of the line PDA phones, at any cost. Most people living paycheck to paycheck insist on having these items as well. This is evident to me when I hear I have to wait a week because “they don’t get paid until next Friday…” (Most people find no shame in telling me this). I feel like a marriage counselor when couples argue (in front of me) that they can't afford this, OH WAIT, yes they can, they just have to wait for their checks to clear. Now you might be skeptical and wonder if a phone is really an impulse buy , and I would say DEFINITELY YES!

Many of my customers are pulled in by a “sales greet” and then convinced to buy a phone. You would think that something as serious as a cell phone, binding you into a two year contract would warrant someone to think twice. I would then urge you to spend a few hours in my store and you will change your mind set.

Impulsive buying and consumer behavior is a topic that I’ve always thought about passionately in my head, but I’ve never actually sat down and organized my thoughts. Through this blog I hope to answer the question of WHY? WHY do people purchase things they know they cannot afford? It blows my mind and I don’t think I will ever find an answer. It’s actually common knowledge that the poor tend to spend their money and the rich tend to invest, which speaks volumes for capitalist society. Please don’t get me wrong and draw the conclusion that I think ‘all spending is bad.” We need “spenders” in our system to make the world go round. But if we brought to light the “not so smart choices” of these spenders, maybe our world would be a better place.

Please join me as I delve into a topic that I know you’ve been guilty of at one point or another. As this blog is a continuous work in process, I hope to touch a nerve with a few readers and together learn how to make better financial decisions. The topic of personal finance is taboo and will undoubtedly make us uncomfortable to talk about it out loud. We will not understand the topic or change our circumstances unless we force ourselves to sit down and assess our own financial decisions. So please, if something I say sparks a nerve with you, comment and make your voice heard!

Profile
Phillip Graves contributes to a blog entitled the Consumer Behavior Blog in which he explores the psychology of why consumers make certain purchases. This blog was of great interest to me because it not only focused on consumer behavior but also critiques the marketing strategies of certain companies. He said that market research is ineffective because consumers are usually not knowledgeable and there are so many differing ideas that coming to a consensus is impossible. In relation to my topic, Phillip focuses on the company rather than the consumer. This can give some good insight on why customer's take the actions that they do.

Phillip’s blog is academic in nature, since he claims to be a consumer behavior expert. He authored a book called Consumer.ology where he discusses the psychology behind why consumer’s make the decisions they do. He again stresses that market research is ineffective and that the key to understanding consumer’s lies in their psychology. His writing and studies are based in the United Kingdom, where he has consulted for various corporations. Although I could not find Phillip on Technorati, there were a good amount of responses to his blog entries. Phillip frequently posts to his blog on a range of topics that he seems to be very knowledgeable about. I find that he uses his blog as a tool to market his books.

This subject fascinates me and I hope to draw from his knowledge to come to a better understanding of the topic for myself. Phillip defies generally accepted marketing principles and claims that the standard way of thinking is incorrect. His blog counters the status quo and forces the reader to challenge their preconceived notion of consumer behavior and marketing.

I hope to mirror my blog as Phillip’s writes his, because he delves into topics that I also hope to analyze in my own blog. He authored one entitled “The Consumer Need Myth and Why Customers Really Buy.” This is the topic of my first blog and Phillip came to the conclusion that companies must target either a physical or emotional need of the customer. Phillip discusses that companies are usually out in the market to fill a need, but Philip argues that usually consumers don’t really know what they need, rather they know very little about the product they purchase. Moreover, the act of buying something is a goal that is set out in a person’s mind, and after the act is done, our brain releases the feel good hormone, dopamine, reacting to the idea that we have successfully completed a goal. He explores the psychology of “shopping” and discusses how it has always been beneficial to obtain material possessions. For example tools and “mechanisms for protecting ourselves” has always been valuable to us. Presently, material items that we purchase are a way of “protecting” our image and preventing us from being too much of an outsider.

The layout and organizational structure of Philips blog makes it easy for the reader to navigate. It is very simplistic, but not overly so that it makes the reader want to leave the site. His homepage contains only 3 tabs for external links, but it effectively organizes his blog. My own blog will draw information from Phillip’s blog; however, I will not have an in depth working knowledge of the topic. I hope to draw from his topics and expand his research by finding other scholars that agree or disagree with his opinions.

Voice Critique
I was immediately drawn to Gerd’s Consumer Behavior blog because the first page contained images of trendy products, celebrities and pop culture. In one of her posts entitled “Why I Love Ikea,” Gerd lists her #5 reason as the “You cannot go to an IKEA store without stopping by the cafeteria for the Swedish meatballs.” I liked this post in particular because I also enjoy them and no trip to Ikea is complete unless I eat a tray of meatballs covered in gravy, not to mention the mashed potatoes on the side. This blogger clearly shared my obsession with food and cheap furniture. This display of personality really helps the reader get an immediate sense of the blogger's voice. The graphics posted on her blog also speaks volumes to her personality and voice.

Gerd also complements many of her blogs with relevant images or video clips, which help the readers get a better feel for the topic being blogged about. She spiced up her blog by integrating a YouTube clip of a man that lived at Ikea while his apartment was being fumigated. I thought this was a clever way for her to market her own blog, while at the same time exposing another person’s media stunt.

This blog was very conversational in nature because it usually begins each blog entry with a question. In doing this, Gerd initiates a conversation with her reading audience I chose her blog because it was very easy to navigate and browse. She effectively created a nice flow by using bulleted and numbered lists. In doing this, it brought by attention to the main points and allowed me to skim over the blog quicker. Her Ikea blog is a prime example of this. Given that she is a female student interested in pop culture/media, her persona leads me to believe that she is a typical student on a budget that shops at Ikea. This topic reflects Gerd’s personality as a blogger because she chooses topics that would be of interest to the average college student. Given that she is a college student herself, she can connect to that specific audience.

In another post, Gerd’s personality is very apparent when she blogs about the over-consumption of different products and it’s effect on the environment. Again she employs her device of bulleted lists and offers several suggestions on how to reduce pollution. Her first lists includes ridiculous items like

• “Meat consumption takes 10 times the amount of resources to produce as a corresponding amount of vegetables. Therefore; quit eating meat.
• Did you hear about the British MP who announced that he was going to quit flushing after doing “number one” on the toilet? You can do better: Stop flushing the toilet even after number two; it will save much energy and water.
• While you’re at it, quit showering.”
She engages in a casual conversation with her audience if
“you love meat too much to give it up, you like smelling nice, you think the sound of a toilet flushing is like music to your ears.”

Gerd uses humor when talking to her audience and says if they agree to the above statement, then they must heed her second bulleted list of tips. By offering the first set of lists, she sets the tone that she can be comedic about the issue, however she transitions to a more serious tone. Her second list offers more realistic and practical solutions to over consumption. At the end of the blog she speaks more to her persona by saying “Next week I become a green consumer super-hero!” and places a picture of an imaginary super hero. Again she does this to add humor and possibly relay to the audience that although she blogs about a sensitive topic, she can still be funny.