Many of us would say that we loathe uncertainty. If it were up to us, every day would play out like a familiar script. But there comes a time where we have no choice but to venture into unchartered waters -- whether it concerns landing a new job; grappling with a new health condition; or making a large purchase, such as a new home. Stress is inevitable. You're likely to second guess your decisions. And, worst of all, you're bound to start down the slippery slope of imagining the absolute worst. If these feelings aren't reined in, they can lead to adverse outcomes like anxiety and depression. While some might advise you to simply think positively, I think a far more effective approach is to hope for the best, but plan for the worst.  Think about it: What are the chances of the worst coming to pass? Very slim, of course. Usually we end up dreaming up scenarios in our head that come nowhere near reality. Still, there is always a slight possibility that the job ...

As someone who studied and works in marketing and consumer psychology, I know full well how tempting it can be for consumers to spend money they don't have. You walk into a store and see shoes to die for that would look great with the spaghetti strap dress you bought moments ago. Or, you see a shirt you know your brother would dig, a pair of earrings that your mom will go gaga over, and a tool set that has your uncle's name all over it. Whether you're buying gifts for yourself or for friends/family, it makes sense to scour the internet and newspaper for the best deals you can find. Still, if you see that if your shopping list could easily translate into hundreds (if not thousands) of dollars in credit card debt, you'd be wise to pare it down a bit. You can start by only buying one gift per adult. Better yet, why not get one gift per couple? Things like towel sets and silverware sets are items for the home that anyone can use. You may be tempted to buy the li...

Your neighbor buys a brand new BMW -- the same one you eyed in a catalog last week -- and you burn with envy. Your coworker purchases a new house and invites you to a housewarming party. You debate whether to turn down the invitation only because you're angry that you haven't found a home for yourself after a frustrating two-year search.  There will always be things others possess that we wish we could own, too.  But comparing yourself to others and always trying to keep up with the Joneses is the wrong approach. If you want something badly, work hard to acquire it -- whether that means saving money for years, cutting vacations for a while, or angling for a promotion.  Once you have it in your possession, take pride in the fact that you accomplished a huge goal by virtue of your hard work -- that you rewarded yourself with something you truly deserved.  In other words, what you achieve should revolve solely around you -- not what others do o...

If you were to pick a U.S. state you think people generally know little to nothing about, which one comes to mind?  If you're like me, Alaska, which became the 49th state in 1959, is a sure contender. Alaska is derived from the Aleut word "alyeska," which stands for "great land." On this day in 1867, the United States formally took possession of what became the largest state in the country after buying the territory from Russia for $7.2 million. Most people assume Texas is the largest U.S. state, but Alaska is roughly twice the size of the Lone Star State in area and about one-fifth the size of the contiguous 48 states combined. So why would Russia want to sell its Alaska territory in the first place? For starters, it was remote, sparsely populated, and hard to defend. Russia preferred selling it to the United States than risk losing it in battle with a rival like Great Britain. Negotiations between secretary of state William Seward and the Russian m...

You may be surprised to learn that many consumers often buy things that aren't necessarily in line with their personality. Why would they do this, you might ask? For starters, many people do it to fit in. For example, those who don't drink alcohol might still spring for a glass of wine at a Happy Hour event -- just so they can blend in with the crowd a bit more easily. Others might fork over the money for these purchases when it's something they can share with other people. You might be a museum hopper while your partner has no interest in such places. Still, he or she might purchase two tickets to the local art museum and take you there on your birthday. Studies have found that whether they buy material items like expensive watches or life experiences like vacations to the Bahamas, many consumers find themselves no happier following the purchase than they were before. Why? Chances are that the purchased doesn't align with their values and personality. A cou...

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 ...

According to a study recently published in the Journal of Marketing, the smell of cinnamon can actually have an effect on your purchasing behavior! Per researchers, when a warm scent like cinnamon or vanilla fills a store, it can make you subsciously feel as though you're in close quarters. This, in turn, can lead you to feel inadequate, prompting you to purchase more expensive products to counter the sense of inadequacy. Who would have thought that scent alone could drive consumers to spend more? I'd imagine that this study has immense implications for companies that sell big-ticket items like televisions, laptops and cell phones, jewelry, and cars. It's kind of scary when you think about the lengths retailers go to to influence our purchasing decisions. From scents and food samples to colorful signs and unusual store layouts, these companies are doing everything they can to appeal to any one of our five senses. Once any of these cues captures our attention -- in a g...

Did you know that we, as consumers, typically go through a 4-pronged process once we set out to make a purchase? Indeed, the Consumer Decision-Making Process consists of the following steps: 1. Need Recognition : A need is identified -- say, to buy something to wear for a job interview -- that the consumer now aims to satisfy. 2. Information Search : Now that the need has been established, the next step is to due my due diligence on what "look" would be appropriate for the firm in question. Obviously, I would have to research the company and see whether it would be more appropriate to wear business attire or something a little less formal. I can do this by either looking online or asking people who have worked there at one point or another. If I'm interviewing with an advertising agency, it's likely they'll be much more accepting of a polo shirt and jeans than a mutual funds firm would. 3. Evaluation of alternatives : Assuming I determined that a business...

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...