Shopping leads to more shopping(buying)!

Lee’s Notes: Interesting article.. Has me thinking how I can get people into a house and get them in the spending mood.. /snicker…. Basically, if you go into a store and make the decision to buy one item, it opens the floodgates, and you are more likely to buy multiple items from that retailer…

Recent research at the Stanford Graduate School of Business suggests that shopping can lead to more shopping.

When such savvy marketing researchers as Uzma Khan of Stanford, Ravi Dhar of Yale, and Joel Huber of Duke noticed that shopping sometimes proceeded unchecked even in their own private domains, they decided to get to the bottom of things. Setting up a series of tests of purchasing behavior, they found that for most people buying that fateful first — and often innocent — item seems to open the purchasing floodgates. This realization, they say, has important implications for how stores are laid out as well as for understanding individual behavior.

These researchers indicate that shopping is a two-stage process.

1. First, a consumer deliberates over the need to purchase an initial item, weighing the pros and cons.
2. Once this initial “deliberation phase” has ended — once a consumer has decided to buy one thing — the consumer deliberates less about subsequent items.

Essentially, once a person decides to buy one thing, this creates “shopping momentum”, increasing the likelihood that he will buy additional items. If you pick up an impulse item (like a magazine or candy bar) as you enter a store, this can serve as a trigger to encourage you to buy more.

PS – Did i ever tell you how bad it is to make larger purchases before closing on a new home? Had a couple who were buying a new home, and 2 days before closing, they went out and spent 4k(got a loan) on new furniture.. The bank did a credit check before closing, and that extra 4k put them over a threshold and the bank declined the loan at the last minute…

As always, if you like what I write, and you or someone you know is looking to buy, sell, and or invest using a great realtor in central Indiana, or anyplace else for that matter. Please feel free to send me the persons name, email, address, and or phone number and I will be happy to help them, or refer them to someone else who can… In the process, I may earn a referral fee, if i cant help them myself!