The Change Mariner

Finding Happiness by Trading Up

Boston.com:

Consumers get emotional payoff from splurging Public-relations executive Kristin Dormeyer works hard for her extra cash, but some people might say she doesn't spend it wisely. She buys face cream that costs $50 for two ounces and splurges on all-inclusive vacation packages in the Caribbean.

During a recent visit to Three Dog Bakery in Ladue, Mo., she bought $40 worth of gourmet dog treats for her Italian greyhound.

''I know people might think it's a little strange," said Dormeyer, 34. ''[But] it makes all the hard work feel like it's worth something on a personal level."

Experts on consumer behavior say Dormeyer's spending isn't strange at all. She's part of a growing group of middle-market consumers who trade up, spending more in certain product categories in return for an emotional payoff: comfort, a boost in self-image, or a feeling of closeness with a loved one.

''One way to look at this is, consumers are idiots," said James Twitchell, author of ''Living it Up: America's Love Affair with Luxury."

''Another way to look at it is that we're quite rational. . . . The reason these seemingly ridiculous products from seemingly ridiculous places command the prices they do is that when we get near them, we feel powerful feelings."

Posted by Jennifer King at April 4, 2004 05:34 PM | TrackBack
Related Categories: Industry - Retail | Quadrant - Economic | Quadrant - Social

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