The Halo Effect
Posted by Gail | Filed under Smart Shopper
As I work with Princesses on my new series, I am fascinated by their utter and complete devotion to brand names. When they speak of their shoes, they aren’t shoes, they are Louboutins and Fendis. When they talk about their purses, they are Louis Vuittons. Their dresses are Diane Von Furstenbers (which they call DVFs for short). And I – who can’t tell a pair of Omegas from a pair of Dittos – am left wondering why people who can barely scrape together enough money to get to the end of the month would leave themselves open to financial disaster for the sake of a name.
Seems the answer lies in a psychological response call the halo effect. In a classic paper published in the Journal of Personality and Social Psychology thirty years ago, R. E. Nisbett and T.D. Wilson found that global evaluations about a person (is she likeable?) affect our judgements about their specific traits (is she smart?).
Nisbett and Wilson examined the way students made judgements about a lecturer. The students were divided into two groups who watched two different videos of the same lecturer. One group watched a lecturer answer questions in a warm and friendly way while the other group saw the same person answer the questions in a cold and distant way. Each group of students was asked to rate the lecturer on physical appearance, mannerisms and even his (Belgian) accent.
Students who saw the ‘warm’ lecturer rated him more attractive, his mannerisms more likeable and even is accent as more appealing. The big surprise was that students had no idea why they gave one lecturer higher ratings, even after it was suggested to them that how much they liked the lecturer might have affected their evaluations. Students were convinced they had made their judgement about the lecturer’s physical appearance, mannerisms and accent without considering how likeable he was.
Halo effect explains a lot about why people embrace certain brands as they seek to emulate their favorite stars. When a well known personality is perceived to be attractive and likeable we naturally assume they are also intelligent, friendly, and display good judgement. Some of us, it seems, want to BE them. And we’ll go to extreme measures to take on their halo.
Marketers know this and they use it to sell more at a higher price. In his book, Reputation Marketing, John Marconi talks about how books that have ‘Harvard Classics’ written on the front demand double the price of the exact same book without the endorsement.
That’s exactly what happens in the fashion industry: Add a well loved and respected designer’s name to a pair of shoes, handbag or jeans, and watch the prices skyrocket.
Perhaps the most disturbing thing about the halo effect is that even when we know it exists, we are defenseless against it. In fact, we’ll even deny it’s operating as we plunk down our money.
The next time you go shopping and are tempted by a name-brand anything, ask yourself this question: Are you really evaluating the characteristics of the product or has the halo effect got you by the short and curlies?
December 9, 2009 at 8:02 am
I’m glad that in my small town the shopping I do is at Zellers for any clothes that I need. A lot cheaper then some of the stores I could go to in the biug city.
regards,
Jason
December 9, 2009 at 8:28 am
I have travelled and shopped from one coast to the other, even on Rodeo Dr in Beverly Hills, and I can honestly say that I have never bought designer items based on their name. It has always been a matter of practicality, fit, comfort and cost for me.
December 9, 2009 at 8:49 am
If it’s well-made, won’t go out of style next year and durable, I’m okay with paying more for it – I just have to save longer to get it. But to be frank, most of the “designer” stuff is made in China now too, which means it’s likely not well made and likely not durable so not worth the extra money to pay for the brand name anyway.
I love to cook. It’s my passion. And to do it well you need good pots. I’m slowly replacing old cheap pots with new. I’ll pay more for a good Paderno pot, but now that Paderno is getting some of its line made in China I have to be extra careful and maybe will have to look somewhere else for good pots…
December 9, 2009 at 9:04 am
I’ve never had the desire to purchase anything with a name. And if someone is buying something to impress me, well, they’ve wasted their money since I wouldn’t have a clue if it is a brand name or not!
December 9, 2009 at 9:15 am
I admit I’m susceptible to brand names for clothes, which often ends up languishing in my closet because I can’t bring myself to give away such expensive item(s). I’m a big fan of the concept of ‘CPW’ (cost per wear). I don’t mind $200 jeans if I wear them every day. I hate a $500 dress that gets worn once.
I also find I get very influenced by the store itself – you could throw Zellers clothes in a nice boutique and I would definitely find them more appealing (and pay a lot more!). I know this about myself and yet I can’t stop it!
December 9, 2009 at 9:52 am
It’s not so much about clothes for me (most designer labels come in sizes I could never fit into). But I will confess that I will look for “last a lifetime” things -which are often with designer labels. My last fancy name purchase: a watch from switzerland worth more than my car. I don’t carry any consumer debt so I treated myself. Wearing it makes me feel good about the fact that I can afford it. I’d say it’s the halo effect for me – at least when it comes to this watch. I could have purchased hundred of watches that looked like it over my lifetime, but I wanted the brand. Paying attention to my financial health is important, but every once in a while I love splurging! I can’t help it…
December 9, 2009 at 10:01 am
Gail, I don’t understand the message of this posting. Is it that you shouldn’t buy brand name items? Or that you shouldn’t buy ITEMS you can’t afford? If I can afford a Brook’s Brother’s suit, you bet your sweet I’m going to buy one. If I can afford an Audi, that’s what I’m going to cruise around in. Or is that you should understand why you’re buying something. Personally, I think there’s nothing wrong with buying a brand name product simply because it’s a brand name. Maybe you should be aware of it, maybe not (but like the poster above mentioned items become brand names because they are quality items, generally speaking) but if I’m going into debt for it that’s a whole other story.
December 9, 2009 at 10:06 am
When I first read this, I thought it didn’t apply to me. I would never pay the kind of money commanded by designer clothing and shoes. I do, however, pay more for other brand names I like. There is a certain strawberry jam I buy that is more expensive than the generic ones. But I like it, so I pay up.
I think my jam tastes better, but this article has me wondering if I’m a victim of the halo effect. My second question is: does it matter? Is paying $4 for jam instead of $2 as harmful as paying $500 for a dress rather than $49.99?
December 9, 2009 at 10:06 am
One of my friends took me along on a shopping trip for a diaper bag. Our first stop was at Holt Renfrew and she asked the saleslady for a Louis Vuitton diaper bag (my friend says Sarah Jessica Parker had one for her first baby). This “designer” diaper bag costs $1500!!! My friend wanted to shop around so then we went to the Gucci store. They didn’t have a diaper bag in stock but would call my friend when they had something.
Seriously? I love my friend but plunking down $1500 for a diaper bag is not a sensible option for me — no matter which TV star had one. So my husband and I purchased a daddy-friendly diaper bag at Toys R Us for about $50 which is very practical and sturdy and has been very useful for our two babies.
December 9, 2009 at 10:17 am
@ 2 cents – why is ‘harmful’ to pay $500 for a dress instead of $50. Why is a $50 dress less or more harmful? In and of itself, neither is harmful. If I make $5,000 a year, a $50 dress is likely very harmful to my finances. If I make $175,000 a year, a $500 dress is likely not harmful. It’s relative to income, not relative to price.
Reminds me of the Simpsons episode where Homer takes Marge past the Dollar store (“no way we can afford anything in there!”) then past the 66 cent store (“who do they think we are, the rockefellers?”) and then finally to the 33 cent store where they walk in (“ah I’m home”). Marge picks up a dress identical to hers, and says ‘33 cents? Arrgh I paid twice that much!’.
December 9, 2009 at 10:19 am
I have an envy for brand names, but I don’t have a propensity for them. The closest I get is a Danier Leather Purse – paid for with a gift card form my father form Christmas last year!
I’ve looked at the quality of some of designer pieces everyone raves about and have noticed that you are paying for the name on the clothes and not the clothes themselves, because of white cotton T-shirt in Old Navy for $10 has the same quality as a DKNY for $90. I think there was a gentleman in on of the new episodes of TTDUP that said he was very into image and didn’t much care that he was losing his marriage, his house and any financial footing he had to get them. is this halo or peacock effect? Perhaps both I guess. Personally though, those who judge by clothing name brands you wear and not by the person in the clothes are not people I’ve given much time to.
Hm…makes you think though!
December 9, 2009 at 10:22 am
Geoff, I think it’s the fact that these girls are attempting to maintain an image that is outside of their grasp. They’re going into debt, potentially having trouble meeting their financial commitments (rent and insurance for example), and all for what? To prove that they can participate in the fashion world? To prove that they “have made it”? To “prove” they have the “right look” or the right image (that they can’t possibly maintain)?
I think there’s a large difference between occaisional splurges/saving up to spend the money as you wish and spending all of your money on “splurges” every day.
December 9, 2009 at 10:28 am
Shopping designer labels can be taken to the extreme.
Many years ago I knew someone who had a large disposable income. She was working but still lived at home with her parents. She did not pay room OR board. Nothing but designer items were good enough for this girl. She spent a fortune (mostly on plastic) to promote an image of success.
One year money was a bit tight for her parents (dad temporarily laid off work). Her mother gave her a nightgown for Christmas. She went all out wrapping it. “Jane” absolutely loved it – perfect colour, style, fit etc. She wore it for a week before her mother told her she bought it from Byway. That was the last time the nightgown was worn. The nightgown hadn’t changed but Jane couldn’t bring herself to wear it anymore. She was a slave to labels.
Eventually Jane had to declare bankruptcy as her parents refused to bail her out when her debt had become too great. Declare bankruptcy for the sake of a label nobody will see? I think not. Any one of us can look great on any budget.
December 9, 2009 at 10:29 am
I am definitely not a ‘designer’ girl. I’m not into status to fluff out my ego (I think that is the essence of what Gail is trying to say). People are perceived as rich simply by the fact they have designer handbags, shoes, fancy cars, etc. – but it might simply be an illusion of wealth if they purchased those items on credit (to look like they can afford it). I’ve never owned a pair of tried and trued Levi’s yet my nephews (now grown up) grew up wearing Reeboks, Nike, and an assortment of name brands – they would never be seen wearing items purchased at Zellers or Walmart. I grew up in the 70s – name brands were not an option – we wore polyester pants
. About a year ago, I started noticing women carrying these ‘plaid’ purses’. A young co-worker of mine had one sitting on her desk. I went over to her and asked her what it was (brand?) . . . she’s casually mentioned that it was a “Coach” handbag . . . I shook my head. Quite honestly, I don’t care for the handbags (not my taste) and don’t get the popularity of owning them. I recently was in the US shopping at one of the outlet malls. The Coach outlet store (in all the years I’ve been going) ALWAYS has a line up outside their store! I’m told Coach is the ‘every woman’s’ designer handbag (since Louis Vuitton and such are tooo expensive) – women hankering for a designer handbag choose Coach instead as it is somewhat more affordable. I’m not sure how true that it – it was told to me. On the other hand, if you can afford a designer whatever – go for it – as long as it doesn’t put you into debt. I have that ‘bargain’ shopper gene – but certainly like nice things but not enough to pay for it through the nose.
December 9, 2009 at 10:31 am
Emma, I get what you’re saying but I think the posting is more about not BUYING brand names than it is about AFFORDING brand names.
I think Gail’s last line shows the bias: “The next time you go shopping and are tempted by a name-brand anything, ask yourself this question: Are you really evaluating the characteristics of the product or has the halo effect got you by the short and curlies?”
My response: If I can afford it, maybe I want to buy the halo effect and if so… good on me!
December 9, 2009 at 10:38 am
MP says:
“…But to be frank, most of the “designer” stuff is made in China now too, which means it’s likely not well made and likely not durable so not worth the extra money to pay for the brand name anyway.”
Your statement is generally true, however to add more accuracy, what you will find is that most “big name” clothes are made in the same building & by the same people as the cheap, more generic items (read “No Logo” by Naomi Klein for insight into that industry). This is phenomenon is also found in the food industry, where no name, generic products are produced by big name companies – eg. I know that President’s Choice film was made by Fuji Film. End result, film that was great but cheaper.
December 9, 2009 at 10:42 am
I don’t mind paying more for a quality item, but like MP says, most everything is made in China. One day I went shopping for a CD holder and found the one at Zellers for $14 and then, while comparing prices, found the IDENTICAL one at the dollar store for $1.50. Both made in China.
Another time I was out shopping the woman in front of me in the lineup decided to try and make herself feel better by rubbing her label in my face. She went on and on about her Chanel sunglasses and then told me I should get a pair because they were so good. I was a poor student and clearly looked the part but I wasn’t about to let her get away with snobery so I told her I would certainly buy my own pair once I broke the habit of leaving my sunglasses on the car seat and sitting on them.
Not only do we perceive someone as more attractive if we like them, we are more likely to listen to someone if they are attractive, even if they are talking out of the wrong end.
December 9, 2009 at 10:55 am
WOW. I don’t think that I have seen such lively conversation back and about a blog in the past. Gail really hit the emotions with this one.
Geoff – I think you have the jist of the last line all wrong. I think this post is about buying quality. If that means buying a brand name fine (if you can afford it) but look at the quality of the item and not just the designer label.
I like to think that I have found a balance. There are things that I would never buy cheap. Shoes for example. My kids only get brand name because they last longer than the $20 pair. That doesn’t mean that I would spend $100 on a fashion trend for something that they will grow out of.
When we go to the dollar store the kids know a toy might only last a day but if you spend a lot of money on something, I expect it to last at least a little while.
December 9, 2009 at 11:04 am
I’m attracted to authentic people. If you’re authentic and happen to be wearing designer clothes you bought and can afford, good for you. Chances are, if you can’t afford it, you’re not being authentic to who you are. You’re trying to be someone you’re not. That’s unattractive.
One beef I have is people who rack up massive amount of debt on consumer spending out of greed and declare bankruptcy… I can understand someone who has lost their job or was very ill, it’s the able bodied people who are buying things they can’t afford because they feel they deserve it. Why should they get to do this? Where is personal responsibility?
December 9, 2009 at 11:22 am
I’m not advocating to buy brand name items. (I’ve never owned any of those name brand above, just can’t justify it).
However, I’ve been caught too many times in the case where – you buy cheap, you get cheap. I think this is true for a lot of things.
Take for an example something that you would use constantly, the cheaper ones usually will wear out faster, thus you have to buy the item again. I’d rather pay more once than over and over.
The other is less use items (eg. waffle maker). My mom bought a really nice waffle maker and use it at least 2x per month. I bought a cheap waffle maker and used it once, hated it and ended up donating it. Lesson learned, if it is cheap, usually it doesn’t do what you need it to do, then you are less likely to use it. Now we just go over for waffles LOL.
I will pay more for quality because it will save me more in the long run.
December 9, 2009 at 11:33 am
I’ve never considered myself “rich” enough to buy designer anything. As a result, my wardrobe and shoe stash are of the cheaper variety, and that’s fine with me. I tend to wear my stuff till it wears holes through it, and replace my clothing wardrobe only about once every 5-7 years. This year was the year for new tops. My hubby took me shopping with the money he got from selling something. I am clearly NOT a designer gal. Every time I found a top I liked I made sure there were no visible markings that indicated it was “designer”. I hate to wear something that flaunts a brand name. I prefer to wear something plain that doesn’t scream “Look at me and what I can afford to wear”. I did end up walking away with 5 new tops that I’m happy with. Thanks hubby for a well deserved shopping trip that we paid for in cash. I feel like a million bucks now… well, at least $200.
December 9, 2009 at 11:40 am
Well.. read the book ‘You World Is About To Get A Whole Lot Smaller’. Due to the oil shortage & the cost to get it out of the earth, purchasing items from China won’t even be an option in the not to distant future. The cost of shipping is going to go up dramatically & so will the price tag of the items produced there. No more, realitively,cheap flat screen TV’s..or the variety of food we have become used to.Then, only the ‘real’ rich will be able to buy these item. The rest of use will be spending a larger potion of our income on heating our home, gassing the car, & putting the food on our table. What will the princess to then?
December 9, 2009 at 11:41 am
It is funny how brand names can sometimes start a being a better quality item and then the manufacturer tries to make the item on the cheap but sell it on their reputation.
The person who mentioned the Paderno pots made me think of this.
The other one is the fact that a lot of stores are owned by the smae company nad their clothes are made in the same factories (GAp, Old Navy and Banana Republic is oen that comes to mind).
The other thing I laugh about are people who follow trends, buy the latest brands but really have no sense of style and look kind of ridiculous, but will brag about their brnad name outfit. I have a friend who always gets compliments on her looks and get asked what brands her clothes are. She thinks this is hilariaous as she buys a lot of things second hand, at discount stores or makes/tailors her own clothes, but she has a good sense of style and idead of what looks good on her so she looks like she walked out of a magazine.
December 9, 2009 at 12:57 pm
@ Geoff – Good points. It’s all relative to what you can afford. I can afford the jam. I can’t afford the dress. However, I still wouldn’t pay $500 for a dress even if I could afford it. I think values come into play here. I would rather pay less for clothing and save the rest or share it with those who can’t even afford a $10 dress.
I’m not saying those who would pay the $500 are necessarily bad people. To each their own.
December 9, 2009 at 1:12 pm
I think the fact that the posters on this site consider whether they’re overspending on anything they buy, from soup to nuts, is a testament to the fact that those of us who read and comment are trying to be conscious of our spending habits to support our goals of being DFF. We make different choices depending on our circumstances and values. Perhaps because many of us are using Gail’s tools to turn our financial situations around, we have the zeal of the converted, and we feel the need to justify those choices. However, the tone of the posts can get sometimes get a little judgemental of those who make different choices than our own, on Gail’s show, in our lives, on this message board.
What’s really crucial for me in Gail’s post is the way that the halo effect — in Gail’s new princesses and the rest of us — can blind people to the real cost of big-ticket items, whether that’s shoes or electronics or gadgets or whatever. (Remember those guys from TDDUP who traded in their cars every year, building a mountain of “negative equity”?) If I’m blinded by “WANT it, NEED, gotta HAVE it” — created in part by the halo effect — without considering the implications for my ability to cover the necessities, that’s a problem. And it’s a big problem in our society, with an economy built on consumer spending and credit-card/LOC debt. I’ve broken myself of the habit of recreational shopping, so I don’t go shopping very often, but even so I can sometimes hear the siren song of that new __________ which I don’t need but I’d really really really like to have!
December 9, 2009 at 1:39 pm
I find that people can be very loyal to a brand/company. I am very guilty of this until it’s proven that the brand isn’t what it used to be (Maytag comes to mind) or the company changes the product (that happens all the time with food products and it drives me nuts.) In their quest to improve something they can change the texture/taste/durability of the product to the point that I switch. But it’s a constant struggle to balance quality with cost. As has been posted, some items make sense to spend more money on and for some it doesn’t i.e. the gift bags at the dollar store are just as nice as ones costing twice+ as much. But my daughter learned the hard way that buying an FM radio/flashlight for $1.25 at the dollar store is a waste of money because it worked very poorly. I took the opportunity to explain that you get what you paid for (in this instance). But I have been just as disappointed by bying a brand that was pricey but had a good reputation and find that it does not live up either to the cost or the reputation.
I found the discussions on an earlier blog regarding store brand items vs. name brand to be enlightening and I have been trying store brand items with varied success. But I think that is what I am striving for. I am trying to make sure that when I spend my money on something I am getting my monies worth (based on my own expectations). That being said I am not a designer girl and often get bored at outlet malls because I still think the reduced prices are too much for me to spend on the item.
December 9, 2009 at 1:51 pm
When shopping – brand name or not – quality and endurance is what I look for. I want to make sure that whatever I by will last long enough to make the purchase worthwhile. My runners are name brand (not the really expensive ones that are out there – but mid-range) – feet take us everywhere in life – so I am not going with the $10 or $20 pairs I used to buy when I was a student – I can afford better, so I buy better. Now T-shirts are T-shirts – whether I spend $5 or $90 – they tend to last about the same amount of time for me – so $5 it is.
We are currently remodelling our bathroom – our new faucets are all ones with lifetime guarantees – costs more, but will last the rest of our time in the house (at least 30 years) – so well worth it.
Personally, I can’t thoil the cost of most name brand clothes, shoes, or purses. I make my own choices – so does everyone else.
Everything is a choice in life – and as long as you can live with the results of that choice – all the power to you.
December 9, 2009 at 2:15 pm
Liz – I very much like how you worded your email, I think you drove home the point of the article.
Debbie – I too read the book Why Your World is about to get a Whole Lot Smaller, and it had quite an impact on how I view things. I even bought a copy as a gift for someone- it truly was eye opening.
December 9, 2009 at 2:50 pm
I agree with Lilly – my mother always said “Just because you are poor, you don’t have to look poor”. I have always sewn, or altered, and (mostly) bought second hand. While my wardrobe may be ‘dated’, most of the pieces are “”classics”", blazers, dark dress pants, etc. While a student in post secondary in my late 40’s, I was often mistaken for an instructor because I didn’t wear sweatpants and t-shirts to school. My one and only ‘designer’ item, an Italian Leather pair of pumps, were found on sale for $40 (outrageous for me in the 80’s), but they fit like a glove and wore forever. I hated to lose them 15 years later when I finally wore them out. I am so out of sync with shopping that I cringe when I see the price tags, generally on items that no one bats an eye at!! I do agree with the concept, tho, that to get a good fit, and wearability, one might need to pay a higher price – but like my shoes, $2.67/year for the comfort they provided is definitely worth it. The ‘price per wear’ concept of another poster would be my guideline as well. As usual, you get what you pay for – but you gotta pay for it – with cash!
December 9, 2009 at 3:00 pm
If the brand represents quality and workmanship, such as Patagonia, I have no problem paying a little extra on occasion. Also, if I can find a quality name brand at a discount at Ross or Marshall’s, so much the better.
December 9, 2009 at 3:04 pm
I find that on occasion I go with certain designers (we’re talking Zellers ones, not Hollywood ones) because they fit me better then others. I don’t say this is my Blarg DeBlarg pants or shirt, I pick it because I like the style and it fits me in a flattering way. The designer just gets it a try in the dressing room.
I would love to be able to make my own clothes or alter them like some people, but I’ve a talent for drawing, not making.
December 9, 2009 at 3:29 pm
This is interesting. I have a love of handmade and natural toys for my kids, and while there are various reasons, if I’m being honest there’s probably a halo effect at play. I’m not even really sure what to do with that information, but it’s good to know. I guess I’ll just keep it in my back pocket for the next time I’m browsing a fancy website that I like that carries wooden teethers.
December 9, 2009 at 3:32 pm
To each their own.
I personally do not buy designer brand names. I do not get a thrill out of items but experiences. Rather than dropping $1500 on a handbag or dress I rather take a Carribean vacation. I have a friend however that has no desire to travel but loves her handbags and shoes. Thats fine because its her passion and she is not putting herself in debt doing it.
December 9, 2009 at 3:49 pm
I don’t own anything designer. Well, high-end designer that is. I’m sure clothing from stores like Jacob or H&M don’t count, right?
If it’s their passion and they don’t spend themselves into the hole following it, then I say — go for it.
We have a real prejudice against collections that are not considered intellectual.
Purses, shoes and clothing = Not so sexy as owning a huge room full of books, DVDs or CDs.
I find that rather interesting.
With that being said, I don’t like brand name clothing because the cost is prohibitive, and I can always find a way to wear what I want for cheaper, even if it isn’t the exact item I wanted.
I also want to strongly speak out against buying fake counterfeit designer bags. There’s a whole underground world with that with child slaves, prostitution, gangs and drugs that I had no clue about until I looked into it.
December 9, 2009 at 4:50 pm
Again from the simpsons… one man’s Prada is another man’s Biway.
Farmer 1: Well, well. Look at the city slicker pulling up in his fancy German car.
Homer: This car was made in Guatemala.
Farmer 2: Well, pardon us, Mr. Gucci loafers.
Homer: I bought these shoes from a hobo.
Farmer 1: Well la-de-da, Mr. Park Avenue manicure.
Homer: I’m sorry, I believe in good grooming.
December 9, 2009 at 4:58 pm
This is Gailvazoxladeizing at her best. Interesting post.
I’m not a designer buyer…but a whiner buyer. Who can fit into those sizes? If it’s not comfortable…I whine. I do enjoy watching the antics on ‘Sex and the City’ knowing fully well that it’s all fantasy. Or should be.
Most designer buying is for show – usually women trying to impress women. I have bought very good quality clothing items in the past because a) I loved it; b) the fit was perfect and c) I knew it would last for many, many years as a classic.
As someone who loves to bake, I do not hold back on quality kitchen items. Also, things from the past are usually well made (and no doubt not in China)…I still have the moulee grater, wooden rolling pin, glass baster etc. etc. my Mom received when she married in 1946.
I’m not criticizing those who can afford it to buy what they want. If you have the cash…make a splash.
December 9, 2009 at 6:06 pm
I used to be into the brand names in late elementary school and early high school. Not major brand names but zellers brand would just not do! I saved my money to buy these things. Then I started realizing that I wanted to save for school, and I thought it was better to find what I liked (comfortable but in style) without the brand name. It became too flashy for me. I like to have a few things that are brand name like zip-ups, hoodies.
For things like electronics, etc I often buy name brand as it is easier to get fixed if necessary and also they typically last longer (and have more functions). I do my research first, but I usually lean toward a brand name.
December 9, 2009 at 6:15 pm
I think the most important thing to remember about purchasing is that we are (should be) buying products. If we actually like the product, great (of course we should be able to afford it), as long as we don’t get duped into buying the marketing instead of the product. Douglas Copeland’s Generation X: “Marketing is essentially about feeding the poop back to diners fast enough to make them think they’re still getting real food. It’s not creation, really, but theft…”
I try to avoid, as much as possible, paying for poop.
December 9, 2009 at 8:38 pm
In my own life, I set some limits because I do love to shop. No matter how high my income goes (some years it hits 6 figures), I will never pay more than a moderate price for anything.
This includes my vehcile, my cap is 30,000 dollars, anything above that I could never justify knowing that there are children who go without food in my own community.
Other limits are 75 dollars for jeans or pants, $100 for shoes and $60 for a purse. It should be noted that my affuent friends were drooling over my $30 dollar JC Penny purse as they sat there with their Louis Vittons.
One of the reasons I set these limits was so that I could set aside a significant amount of my salary for charity. And as well, I have done my research and think that at these price points you can get the maximum qualtiy for the minimum price.
These prices are what I consider mid-range goods and because I am not a movie star or Paris Hilton, they are adequete for my middle-class needs.
December 9, 2009 at 9:30 pm
There was a point in my life where I was not able to buy name brand food items or designer clothing. Now that my husband and I have both very good jobs, small mortgage and no debt, we enjoy the finer things in life and buy items to reflect that. One thing I will not do is buy our 2 children alot of brand name clothes. They have a few good outfits but their everyday play clothes come from Target or Old Navy, great prices, pretty good quality for clothes that will get ruined anyway and eventually tossed.
December 9, 2009 at 11:36 pm
Geoff – love the Simpsons reference! Personally I think the point of this post was to this: it’s all about having a better understanding of how and why we make decisions. Reflecting on our own psychology and the various influences that ultimately lead to a purchase is healthy and helpful and it’s certainly preferable to reacting impulsively. This goes particularly for individuals who may not put a whole lot of thought into how they shop or what they buy, and may have problems defining needs and wants.
December 10, 2009 at 1:15 am
I am with Geoff on most of the posts.
If you can afford it, who cares?
I don’t agree about buying stuff to be someone you are not, but don’t dump on everyone who want to spend on beautiful things.
I have a Louis Vuitton purse which I love, it is very well made and is the exact perfect purse in size and style. I also have a $900 dress coat that I purchased 3 yrs ago. It is beautifully made, fits perfectly, drapes in the right places and doesn’t pill. I will wear it for years to come.
I will not apologize for spending on investment pieces that I will have for years.
Cheap shoes don’t fit and don’t wear well, cheap pots/knives do the job but not without aggravation. Not all “bargains” are in fact bargains if they need to be replaced frequently or are not used because they don’t work well.
Please remember there is a societal price for buying $1 store items.
I think I repeat myself everytime there is a post like this because I feel like people who enjoy beautiful things are portrayed as selfish or superficial.
Excuse my repetition and defensiveness. Perhaps Gail’s new show is more about young people who think they are deserving of fabulous lucre merely by gracing people with their presence, rather than working hard and earning things.
Just be true to yourself, you are more than a sum of your stuff and don’t spend more than you have!!
December 10, 2009 at 6:04 pm
i found this post to be very confusing, i’m not really sure what the message is. so based on the study, if you find someone likeable you will rate them high in other categories. so if i think a celebrity is great, therefore their clothes must be great and i must buy them too?
i don’t think this is necessarily why ppl buy expensive items, tho perhaps for some. if i buy a louis vouton purse i’m not saying to the rest of you, hey i’m just as great as sarah jess parker, i’m probably saying hey look at me i’m rich and fabulous! i want you to look at my clothes or car, then assume that i’m rich then also make the further assumption that i got this way by being smart, sucessful, intelligent, i’m a great leader etc..
and i may be none of those things, but i still want you to think that about it. but what if i am intelligent, sucessful, have a great career, make lots of money? some ppl want to show that off externally by driving a nice car, living in a grand house and i agree with alot of commentors that if you can afford it and it floats your boat then do it.
December 10, 2009 at 11:25 pm
Guess I was born in the wrong era because I don’t have a clue as to what are designer brands/items, never have and likely never will. I wouldn’t recognize a Louis Vuitton purse or any of these other fashion items and frankly don’t care if someone owns one or not. If you can afford it fine, but are you buying it for the name/prestige or because the item gives good value?
If I look well dressed and my clothes are comfortable and give me 4 to 5 years of usage, why should I spend ridiculous amounts of money for a brand name? It’s only stuff after all.
December 11, 2009 at 3:10 am
[...] Vaz-Oxlade talks about the Halo Effect which causes folks to buy things (something that does happen at Christmas) on the basis of the [...]
December 11, 2009 at 7:01 am
[...] driven and often we are unaware of them, Gail discusses one very prominent psychological phenomena; The Halo effect. Of course as a behavioral finance enthusiast this was my favorite piece of the [...]
December 11, 2009 at 10:09 am
Throwing it in the face of neigh-sayers: “In fact, we’ll even deny it’s operating as we plunk down our money.” Powerful words.
The simple beauty of your site excites me. I don’t know why it took me this long to find a link to it, but I will have to visit more often.
December 11, 2009 at 6:41 pm
Like many I used to be into designer names products. I think it was a combination of being a teenager and wanted to feel a sense of belonging and also because I wanted to be just like all the celebrities I was infatuated with.
I think many people (myself included) grow out of this and it’s just a stage. I no longer care about designer things and look for quality, good workmanship and affordability. Probably because I’m a mom now and I’m trying to stretch my money as far as it can go.
@Rita, I love this “If I look well dressed and my clothes are comfortable and give me 4 to 5 years of usage, why should I spend ridiculous amounts of money for a brand name? It’s only stuff after all.”!
December 12, 2009 at 6:45 pm
I used to spend $40 for a pair of Levis jeans. Now, I go to Wal Mart and spend $9.99 + tax for a pair of ‘Penman’ jeans. The quality of the ‘Penman’ jeans is just as good or even better.
December 14, 2009 at 2:45 pm
Many of these comments have made me very sad.
This one:
“Personally, I think there’s nothing wrong with buying a brand name product simply because it’s a brand name.”
“If you can afford it, who cares?
I don’t agree about buying stuff to be someone you are not, but don’t dump on everyone who want to spend on beautiful things.”
The point here is that people aren’t evaluating beauty, or quality or anything else. These, and many other things are valid reasons for selecting one item over the other. But whether you can afford to or not, buying something just because of the name attached to it is a waste of your money. If there is a substantive difference in looks or quality, then maybe it is worth more. But a name adds no value, so you are paying extra money for nothing. Even if you can pay for it without taking on debt, it’s still wasteful.
April 20, 2010 at 3:16 am
I’ve just bookmarked this write-up in Delicious, i am grateful.
May 7, 2010 at 9:46 pm
hello, i adore miss hilton. she is funny and i cannot wait to hear what she will do next! x
May 8, 2010 at 7:58 am
I think buying should be about making conscious choices — whether those choices are influenced by finances, quality, or the product’s “eco-friendliness”, vs. the “just gotta have” influences. If you’re buying something because you “work hard and feel that you deserve it” that’s no reason at all… whether you can afford it or not. It’s like the mentality of people who buy their coffee at Timmy’s… they “need” their Timmy’s…. never mind the environmental impact that their disposable cups are having, or their exhaust that’s polluting the environment as they idle their cars in 7 minute long line-ups at the drive-thru. I think it’s pure selfishness. Same as people who buy individual bottles of water. Whether you can afford it or not shouldn’t be the only issue…