Retail Therapy and the Expense of Coping

"With the holiday shopping season now in full swing, many consumers are eagerly searching for deals. Black Friday. Small Business Saturday. Cyber Monday. All are opportunities to open our wallets and find that perfect gift for those on our list. Despite inflationary pressures this season, many still intend to spend heavily this winter. But while searching for that bargain item, some may find a rare gem that is too good to pass up... for themselves."

"Often, individuals buy what they want instead of something they may need. Many businesses capitalize on the hope that consumers will spend without limits during the holiday season, but it is important to point out that self-pleasing purchases are not always expensive. Although jewelry, clothing, and high-end electronics may immediately come to mind for such shoppers, even minor purchases such as a book or music download may be enough to lift someone's mood."

"Retail therapy is quite common, and emotions often play a role in shopping habits. According to a LendingTree survey of 2,000 individuals ages 18-79, 63 percent of respondents said their emotions influence what they purchase. Nearly three-quarters of respondents (74 percent) added that these habits led to overspending, while 44 percent noted that they led to subsequent financial hardship and regret."

Emotional factors strongly influence shopping decisions and can motivate purchases intended to improve mood. Retail therapy means buying items to feel better, ranging from small purchases like books or music to higher-priced goods. Retailers often encourage self-pleasing spending, especially during the holiday season. Retail therapy can offer short-term psychological benefits for some people, including those with depression or anxiety. Surveys indicate many consumers report emotions affect purchases, frequently leading to overspending, financial hardship, and regret. Relying on retail therapy as a long-term coping method increases financial risk and potential remorse.

Read at Psychology Today