Posts Tagged With: consumer buying

ARE YOU AN IMPULSE BUYER?

During the COVID quarantine, online buying became an addiction for many.  During this time, impulse spending increased by an estimated 18 percent.  Unplanned buying occurs when you purchase more than intended.  Or, buying extra grocery items while shopping when you are hungry. Or, a bad day at work results in a purchase to overcome anxiety.

Most spending occurs to make a person feel better. A survey reported that 72 percent of respondents reported a positive mood from an impulse buy, while 65 percent reported that an impulse buy can reverse a bad day. Others reported that they buy things to help loved ones feel better.

Three personality types are often associated with impulse buying:

  1. Sensation seekers may not consider the risks of impulse buying but desire the spending experience when they feel guilty, bored, or disengaged.
  2. Impulse buying tendency buyers are those who are aware of their behavior but don’t necessarily see it as a problem.
  3. Consumer-driven self-identity is a desire to be part of emerging trends and high-end brands to present an image of status, style, and good taste. 

To take advantage of in-person shoppers, stores make use of sensory environments, bold and graphic signage, associations between brand and positive feelings, checkout line “bonus” items, and price discounts and markdowns. Online retailers encourage buying with the use of time-based and quantity-based deals, heavily targeted social media ads, abandoned shopping cart emails, and free shipping.

Symptoms of impulse buying include:

  • you shop to feel better, which can be dangerous; find other ways to channel your energy
  • you shop to compete with buying to stay up or ahead of others
  • you’re bored; plan something else to do–go for a walk, read, write, draw, email a friend
  • your finances are suffering; track spending to avoid unnecessary purchases   
  • you have too much stuff, much of which you will never use

To reduce your impulse buying…

  • avoid temptations by unfollowing your favorite brand, unsubscribing from marketing emails, clearing browser cookies, blocking favorite sites, deleting shopping apps from your phone, and unsaving credit card information on your browser.
  • create a “fun” budget item as therapy
  • save to buy a “big” item to avoid unneeded spending
  • wait 24-48 hours before buying an item
  • try a no-spend challenge in which you buy nothing for a set number of days, weeks, or months to save money and change past habits. 
  • ask yourself: “Do I need this today or tomorrow?” If not, don’t buy it.

For additional information on impulse buying, click here

Teaching Suggestions

  • Have students talk to others to ask about any actions they take to avoid impulse buying.
  • Have students create an in-class presentation or video that dramatizes actions to avoid impulse buying.

Discussion Questions 

  1. What types of impulse buying situations have you experienced or observed?
  2. How might impulse buying affect long-term financial security? 
Categories: Chapter 6, Wise Shopping | Tags: | Leave a comment

SCAM TRACKING MAP

Not everyone will be a victim of fraud, but everyone is a target. The AARP Fraud Watch Network offers a scam-tracking map to report fraud activity based on user-submitted information.

To help protect yourself and others, people are asked to report a scam they encounter.  The online form requests your zip code, method of contact (advertisement, door-to-door, Internet, e-mail, U.S. mail, or other), the type of scam, and the amount of money lost to the con artist. The list of scams includes more than 50 types, ranging from debt collection and charities to contests and online auctions.

Further assistance in reporting a scam is available at 1-877-908-3360.  AARP warns that it does not independently verify scam reports, nor guarantee the accuracy of reported scams.

Commonly suggested actions to avoid being taken by a scam include:

  • Only do business with reputable companies.
  • Understand contracts or other documents you sign.
  • Beware of impulse buying; con artists often tell you this is your last chance.
  • If it sounds too good to be true…it probably is!
  • STOP…WAIT…THINK…DON’T!

For additional information on the scam tracking map, click here.

Teaching Suggestions

  • Have students locate examples of current scams that have surfaced in their area.
  • Have students create a video with suggested actions to take to avoid being taken by a scam.

Discussion Questions 

  1. What are reasons that some people are easily deceived by frauds and scams?
  2. Describe actions that might be taken to avoid scams and fraud.
Categories: Chapter 6, Frauds and Scams | Tags: , | Leave a comment

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