Key Reasons We Buy Expensive Stuff

We often hear clichés like, "What others say about us doesn't matter," and "the only opinion about you that matters is your own." Noble, yes, but let's face it, folks. We DO care about what others think of us -- a lot.

Case in point: Many of us spend a considerable amount of money on brand-name products. But why do we do this, exactly? There are two principal reasons:

• It makes us feel good: Ask consumers out there why they specifically zero in on premium brands and many will tell you that it simply makes them feel good. The fact that you own a $1,250 Louis Vuitton purse and none of your friends do might make you feel as if you're in a league of your own. This feeling of exclusivity can boost one's self-worth, self-esteem and, in some cases, self-aggrandizement.  

• We thrive on social acceptance: Compliments from other people provide an even bigger impetus for luxury spending. What drives people to buy items with big price tags is not so much how they'll feel once they're using or wearing the product -- but how others will perceive them. ("Wow, he's wearing a Michael Kors watch-- he must be high-class.") This is what we call conspicuous consumption in the study psychology and consumer behavior. Spending and showcasing our "bling" is largely about conveying to others that we have the means to afford expensive stuff and having them shower us with adulation for it. 

What many of these consumers fail to realize is that the elation that accompanies buying a new product is only ephemeral. For example, you can expect people to say great things about your new Mercedes Benz the first time they see it. But is anyone really going to care, say, a week from now? Not really. The novelty of a new product lasts only so long.

I don't take kindly to people who think they're better than others only because they have brand name products their friends and relatives can only dream of affording.

At the end of the day, products are just products. They wear out, and we can't take them when we pass away. It's normal to seek compliments from others when one has saved up the money to buy a an expensive item -- whether a car or TV -- but some people let it go to their heads. There's always something to be said for humility.

What's your take on this topic? Do you buy expensive stuff? If so, why? Does it have to do with feeling good, impressing others, or both?

To read prior entries, please click here: How to Understand People