People regret spending with bottom dollar in pocket
Do you regret buying that pair of shoes or your favourite T-shirt at the fag end of the month? That nagging feeling about your money being wasted is a global phenomenon.
According to a new study, consumers are less satisfied with what they have purchased with their bottom dollar compared to when they have money in the bank.
"As someone spends money, parting with one's remaining funds makes a product feel more costly and causes consumers to be less satisfied with what they buy," wrote researchers from the University of Arkansas, the University of Texas in Austin and the University of South Carolina.
To better understand the effect, authors conducted six studies that measured satisfaction from purchases made with the last of participants' financial resources.
Results reveal less satisfaction with a purchase if someone thinks it will be difficult or take a long time to replenish their budget.
On the other hand, if someone comes into money without any effort, they are more satisfied with their purchases.
Being aware of our own spending cycles can help increase personal product satisfaction.
"While some consumers might be able to mitigate the effects of bottom rupee spending by ignoring their budgets, a more fiscally responsible approach would be to wait a day or two for your paycheck to clear before making a really important purchase," explained Robin L. Soster from the University of Arkansas.
Brands looking to increase customer satisfaction can run product promotions during times of the month when they believe consumers have more money in their budgets, suggested co-author Andrew D. Gershoff from the University of Texas.
The research appeared in the Journal of Consumer Research.
(Posted on 23-07-2014)