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This Explains the Twenty Fuchsia Lipsticks

 

Spending with a smile, happy customers are more likely to impulse buy.

 

By Galia Ozari

February 11, 2008

Want to increase consumer spending? Put customers in a good mood, suggests an Asian study linking mood and impulse buying. Happy customers are more likely than unhappy ones to purchase the first item they see, especially if the choices are relatively similar, while customers who are in a bad mood view items less favorably overall.

 

Researchers at the University of Hong Kong (UHK) and the National University of Singapore (NUS) also found that, while happy shoppers are more likely to impulse buy, they are also more likely to choose the last item presented to them, when instructed to wait until they have seen all choices. In a public statement, UHK’s Cheng Qiu, and Catherine Y.M. Yeung of NUS said, "It is surprising that little research has been done to examine how affect influences comparisons and choices. Our research fills this gap by demonstrating a systematic influence of mood on choice, which contrasts with the general assumption that mood is unlikely to influence choice."

To establish mood, the researchers instructed the subjects to write about either a happy or sad life event. When presented with a variety of mango desserts, the vast majority of happy subjects (69 percent) chose the first dessert shown them, compared with only 38.5 percent of unhappy participants. 

Notably, when instructed to exercise patience, gleeful participants were more likely to choose the last dessert presented. This time, items were dissimilar; rather than several types of mango dessert, participants were given a choice between blueberry, almond and plum pie, presented sequentially. When told to wait until all choices were presented, nearly half (48 percent) chose the last pie. Just about a quarter (26 percent) of gloomy participants chose the last item when told to wait.

"If consumers are exposed to multiple options that differ only in global aesthetic aspects, they tend to evaluate each option spontaneously at the time they first encounter it," explain the researchers in a public statement. "On the other hand, if consumers are exposed to multiple options that differ in important descriptive features, they may withhold their evaluation until they have seen all the options available and evaluate the last presented (most recent) option first."

"Altogether, these findings suggest that the influence of mood on comparison depends on which alternative in a choice set is the one being evaluated first," the researchers conclude.

“In life we see more and more options all the time and at some point we need to decide that we have seen enough and that we are now ready to make a choice,” says behavioral economist Dan Ariely, PhD. “What this research shows is that when we are happier we search less for more information and stop sooner.”  

“Maybe this is why people in love decided sometimes very quickly that they should marry the person they are in love with, and don't search for more info,” Ariely, professor of behavioral economy at MIT, suspects. Ariely is currently serving as a Visiting Professor at Duke University, where he is teaching a course based on his forthcoming book, Predictably Irrational: The Hidden Forces That Shape Our Decisions.

 

It is not unusual for businesses to create happy, spend-friendly environments for customers, says Michael Barr, PhD, of the Chicago School of Professional Psychology (CSPP). “Retailers who are smart do all they can to create a positive mood in their customers. They use ‘up’ music, friendly salespeople, bright colors, and attractive displays,” Barr says. “Humorous commercials, or commercials with babies or animals, do the same thing. This generally increases unplanned purchases, both in quantity and in dollar value.”

 

“Waiting for the last option is to facilitate information gathering, unless the item is a high risk purchase (like insurance or a house),” Barr explains. “Most purchase decisions are made by emotion rather than by logic. When we’re making decisions by emotion, we’re not really thinking about what we’re doing, so the easiest thing is to pick the first or the last, especially if there is no consequence for a wrong choice,” Barr, who is director of CSPP’s Corporate Education and Consulting Services, tells demo dirt.

 

The classic way to make people happy? Think back to childhood birthday parties…presents! “Retailers use this all the time,” Barr says. “Think of a gift with purchase at the cosmetic counter.  You’ll buy stuff you don’t need because you like getting presents.”

 

Which is why thousands of women have cosmetics bags crammed full of untouched little eyeshadow quads.