Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Spillover effect: Why we end up spending more when we think we're saving

10.11.2006
Ever go to a store intending to buy one item, only to leave with a cartful? Or walked out of a store after feeling you had been overcharged for something you needed?

A groundbreaking new paper in the December issue of the Journal of Consumer Research is the first to comprehensively outline "spillover effect" – that is, the tendency for consumers to spend more on a shopping trip when something they were planning to buy is deeply discounted. Similarly, an unanticipated price increase, or a decrease in quality, on a planned purchase causes overall spending to go down.

"Results from two laboratory studies show that spillover effects can occur in response to both positive and negative changes in either the price or quality of a product," write Narayan Janakiraman (University of Arizona), Robert J. Meyer (University of Pennsylvania), and Andrea C. Morales (Arizona State University). "Positive changes increase total spending on other items and negative changes reduce it."

Positive surprises, like a sale on something you were planning to buy anyway, inflated overall purchasing. But both unexpected price increases and decreases in quality caused people to buy fewer discretionary items – and to pass up other goods offered at attractive, discounted prices.

This challenges prior research on the effect that suggests that we mentally budget and react to feelings of diminished or increased wealth by shopping accordingly. Instead, based on their findings, the researchers argue that a more consistent root of "spillover effect" is attribution theory and our desire to reward or punish the retailer for shopping surprises.

Unexpected changes in price trigger feelings of anger or gratitude. In this sense, the researchers point out, consumers are like restaurant patrons who may express gratitude for a complimentary bottle of wine by ordering more, or express anger over a long wait by ordering less.

"Are the feelings rational? In some cases they might well be – such as if consumers have real reason to believe that a decision to withhold purchases might cause the retailer to offer better terms in the future," explain the authors. "But in this research no such expectations existed, [and] yet the instincts to reward or punish prevailed."

Suzanne Wu | alfa
Further information:
http://www.uchicago.edu

More articles from Studies and Analyses:

nachricht WAKE-UP provides new treatment option for stroke patients | International study led by UKE
17.05.2018 | Universitätsklinikum Hamburg-Eppendorf

nachricht First form of therapy for childhood dementia CLN2 developed
25.04.2018 | Universitätsklinikum Hamburg-Eppendorf

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: LZH showcases laser material processing of tomorrow at the LASYS 2018

At the LASYS 2018, from June 5th to 7th, the Laser Zentrum Hannover e.V. (LZH) will be showcasing processes for the laser material processing of tomorrow in hall 4 at stand 4E75. With blown bomb shells the LZH will present first results of a research project on civil security.

At this year's LASYS, the LZH will exhibit light-based processes such as cutting, welding, ablation and structuring as well as additive manufacturing for...

Im Focus: Self-illuminating pixels for a new display generation

There are videos on the internet that can make one marvel at technology. For example, a smartphone is casually bent around the arm or a thin-film display is rolled in all directions and with almost every diameter. From the user's point of view, this looks fantastic. From a professional point of view, however, the question arises: Is that already possible?

At Display Week 2018, scientists from the Fraunhofer Institute for Applied Polymer Research IAP will be demonstrating today’s technological possibilities and...

Im Focus: Explanation for puzzling quantum oscillations has been found

So-called quantum many-body scars allow quantum systems to stay out of equilibrium much longer, explaining experiment | Study published in Nature Physics

Recently, researchers from Harvard and MIT succeeded in trapping a record 53 atoms and individually controlling their quantum state, realizing what is called a...

Im Focus: Dozens of binaries from Milky Way's globular clusters could be detectable by LISA

Next-generation gravitational wave detector in space will complement LIGO on Earth

The historic first detection of gravitational waves from colliding black holes far outside our galaxy opened a new window to understanding the universe. A...

Im Focus: Entangled atoms shine in unison

A team led by Austrian experimental physicist Rainer Blatt has succeeded in characterizing the quantum entanglement of two spatially separated atoms by observing their light emission. This fundamental demonstration could lead to the development of highly sensitive optical gradiometers for the precise measurement of the gravitational field or the earth's magnetic field.

The age of quantum technology has long been heralded. Decades of research into the quantum world have led to the development of methods that make it possible...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Save the date: Forum European Neuroscience – 07-11 July 2018 in Berlin, Germany

02.05.2018 | Event News

Invitation to the upcoming "Current Topics in Bioinformatics: Big Data in Genomics and Medicine"

13.04.2018 | Event News

Unique scope of UV LED technologies and applications presented in Berlin: ICULTA-2018

12.04.2018 | Event News

 
Latest News

Research reveals how order first appears in liquid crystals

23.05.2018 | Life Sciences

Space-like gravity weakens biochemical signals in muscle formation

23.05.2018 | Life Sciences

NIST puts the optical microscope under the microscope to achieve atomic accuracy

23.05.2018 | Physics and Astronomy

VideoLinks
Science & Research
Overview of more VideoLinks >>>