Though some people may be struggling to pay pills amid a recession sparked by a global pandemic, it doesn't mean those in a stronger financial position (or not) won't be running up their credit cards and breaking their piggy banks -- whether online or at the mall. And, ironically, it's all in the name of scoring holiday deals.  Here's what many shoppers fail to realize: Sales are just ploys to get us to buy stuff we may not necessarily want or need.  We go into a store intending to buy or two things and end up coming out with well over five.  We set a maximum holiday budget, but end up blowing right through it as we aim to take advantage of as many "bargains" as we possibly can. Now, that's not to say we shouldn't seize a good deal for stuff that we use regularly. But if you know it's an item you'll stuff in a drawer or closet -- one you might not even remember you have in six months' time -- you should pass on it. Here are four valuable ho...

Earlier this week, I watched a video on psychological techniques employed in marketing and advertising. One of the subjects they talked about extends well beyond the world of promotion. In fact, it's something we do in our lives quite often, sometimes to our detriment. They touched upon what is called the focusing illusion.  In a nutshell, it means that the more you think about something, the more importance you assign it. The moment you convince yourself that you're hungry, you might not want to do anything else until you've grabbed something to nosh on. And you might find yourself unable to stop thinking about an ad you saw on TV promoting the Starbucks pumpkin spice latte the night before. Moreover, we tend to see the focusing illusion in action when it comes to those things that make us excited, nervous, or sad. A couple of examples include: Not being able to take your mind off a new girl you just met Being consumed by negative thoughts as your doctor...

Certain people seem terribly misinformed when it comes to what makes a savvy consumer. They simply can't say no to a sale or discount, even if the product they're buying isn't something they really need or ever plan to use. Whether they're trying to take advantage of buy-one-get-one-free deals on cold cuts at the grocery store or deep discounts on apparel at the mall, they don't realize that, in the quest to save money, they're still spending lots of it. In other words, people don't mind spending money they otherwise would not fork over if it means they're getting it for less. For many consumers, the thrill of snagging a bargain is irresistible. It's no surprise, then, that many people find themselves chronically debt-ridden. Unfortunately, retailers have gotten smart at baiting shoppers with these ploys. By saying that a sale is only available for a limited time, or that items are running out, people are quick to act because they don...

If you were asked to name the biggest societal pressures we face, what would you say? Chances are at least some of these will be make your list: The pressure to get married  The pressure to have children The pressure to be thin The pressure to pursue only those careers that pay tons of money  The pressure to have a nice car, house, and other valuables There are many more pressures we face, of course, but I think the five above are the biggies, thanks in large part to Hollywood, advertising, and the media. Many people would say that the first three concern mostly women, while the latter two predominantly affect men. I'd argue, however, that people are pressured into doing all of these things irrespective of their gender.  It appears the tide is beginning to turn, though. For one, a few of my acquaintances have kids, but they've assured me that they don't want to get married. Others have confided that they're childfree by choice and want to keep ...

I recently read an article stating that 62% of Americans have less than $1,000 in savings. What's worse, 21% of them don't even have a savings account! Supposedly, Americans have been saving more since the global recession, but the stat above doesn't seem to bear that out. One of the most discussed topics on this forum is consumer behavior, as my background is in psychology and marketing. It's imperative that Americans -- and people throughout the world, for that matter -- practice saving responsibly. The best way to save money is by living below one's means. Spending hundreds of dollars on clothing and food every week doesn't help your pocketbook in any way,  especially if you have the tendency to run up your credit card bills and pay late. I'm not saying you can't treat yourself to a good meal here and there, but spending -- just like eating amd drinking -- should be done in moderation. As I tell many of my cash-strapped friends, sometimes ...

Apple today announced that is has already sold a record 13 million iPhone 6 and iPhone 6s Plus phones after launching both models just three days ago. The new iPhones will be available in more than 130 countries by year's end. Now, I have never owned an iPhone. In fact, I've remained loyal to Samsung when it comes to mobile phones -- I currently have a Samsung Galaxy S4 Active -- and TVs. I do, however, use a Mac computer at work and have been using my trusty iPod for all things music for roughly nine years now. But I have to give credit where credit is due: 13 million iPods in three days is a staggering number. Everytime I walk past the Apple store at my local mall, it is jam-packed with shoppers ostensibly looking to shell out big bucks. Apple has succeeded brilliantly at creating an appetite for its product like no other company in the world. When one thinks of cutting edge consumer products in the 21st century, Apple is top of mind. And the funny thing is that the c...

I received my degree in marketing and minor in psychology, so I'm probably one of the few people out there who enjoy analyzing advertisements carefully for content, message, and other variables. It's become apparent that ads for a wide array of marketers ranging from Progressive and State Farm to Geico and Aflak are making their ads decidedly obnoxious these days. Take Progressive, for example. Never has Flo -- the character portrayed by actor and comedian Stephanie Courtney, who's appeared in more than 100 commercials for the company since 2008 -- made me crack even the slightest smile. The Aflak duck was amusing in the 90s, but not anymore -- now you almost feel like throwing a rock at your television set whenever it pops up. Companies are incorporating more animals, loud noises, and silly antics to grab the consumer's attention. What many of these marketers fail to realize is that the most successful ads in recent years -- those of Budweiser and car companies l...

A study in the Journal of Global Fashion Marketing demonstrates that consumers ought to be wary of claims made in cosmetic ads. Timothy Reisenwitzm, Jie G. Fowler, and Les Carson analyzed close to 300 full-page cosmetics ads from the April 2013 issues of seven fashion publications including Glamour and Vogue. The ads studied encompassed a broad range of product categories, from facial skincare and make-up to fragrance and nail products. The researchers categorized the claims as"environmental," "endorsement," or "scientific." The judges then classified each claim as falling into one of four categories of truthfulness: "outright lie," "omission," "vague," or "acceptable." Only 18% of all claims made by the cosmetics companies were deemed "acceptable." However, just 14% of claims scientific in nature were regarded as acceptable, as opposed to 50% of those made about a product's environmental attribut...

Consumers generally try to expend as little brain power as necessary before and while shopping. For example, most of us would easily be swayed into buying a particular product after seeing the word "Sale" slapped on the price tag. But did you know that retailers generally mark up the price so much to begin that you're not getting much of a deal at all? Thanks to advertising, we've come to associate words like "sale" and "discount" with must-have products. Unfortunately, very few of us actually take the time to tally everything up en route to the cash register and determine whether we're truly scoring a bargain. Marketers know that unless they can lead you to think you're getting a deal, they'll likely have a hard time getting you to open that wallet. Marketing is all about psychology. More specifically, marketing is all about perception. You don't need to be getting a spectacular deal -- you just need to think you are. Even...

Judging from the purchase behavior of some of my friends, family members, and coworkers, it's apparent that some people are heavily influenced by advertising. I've lost track of the many times in recent weeks that people around me have admitted to being swayed by an ad in a newspaper or magazine, a banner ad on a website, or ubiquitous TV commercials. And it's not as if they feel compelled to purchase things they really need; usually, they already have heaps of whatever it is they're looking to buy stocked in their drawers or closets -- be it cologne, shirts, or shoes. This is precisely why I studied marketing and psychology -- so that I can be impervious to the advertisements we're assailed by daily and immune to the underhanded tactics that salespeople at mobile phone stores, car dealerships, and other places attempt to employ. I recommend that people only let their guard down when it comes to advertisements for products they really need -- the kinds of produc...

We see it with every new iPhone that hits the market: People making lines days if not weeks in advance of the product's launch. We see people scouring stores for the "best" brands, whether it be Michael Kors, Marc Jacobs, or Coach. Where did this frenzy for the latest and greatest stuff come from? People are replacing their perfectly functional phones once a year,  if not sooner. They're swapping clothing bought two or three years ago for newer garments like it's nobody's business. This illustrates one key fact: Advertising/marketing is alive and well. The promotional landscape has been altered tremendously by the advent of social media. From product recommendations to banner ads, exposure to content shared by friends and companies alike on sites like Facebook exerts an immense influence on our purchase decisions. That's not to say that traditional media like TV and radio are no longer effective, but what makes online marketing so potent is that it...