Feeling powerless can trigger strong desires to purchase products that convey high status, according to new research in the Journal of Consumer Research.
In a study that may explain why so many Americans who are deeply in debt still spend beyond their means, authors Derek D. Rucker and Adam D. Galinsky (both Kellogg School of Management at Northwestern University) found that research subjects who were asked to recall times when someone else had power over them were willing to pay higher prices for status-symbol items.
"This increased willingness to pay for status-related objects stems from the belief that obtaining such objects will indeed restore a lost sense of power," write the authors.
In three experiments, the authors asked participants to either describe a situation where they had power over another person or one in which someone had power over them. Then the researchers showed them items and asked how much they would be willing to pay.
After recalling situations where they were powerless, participants were willing to pay more for items that signal status, like silk ties and fur coats, but not products like minivans and dryers. They also agreed to pay more for a framed picture of their university if it was portrayed as rare and exclusive.
"As an analogy, consider two individuals, one a successful millionaire and the other a recently demoted banker," write the authors, "Both might view a Rolex watch as a clear status symbol. However for the millionaire, wearing the watch might not make the millionaire feel any more powerful than he/she normally feels. In contrast, for our demoted banker, wearing the same watch might make the banker feel significantly more powerful."
In a society with a plummeting savings rate and skyrocketing debt levels, this research has broad implications. "It suggests that in contemporary America, people use consumer purchases to compensate for psychological states of insecurity," write the authors.
"Spending beyond one's means in obtaining status-related items is a costly coping strategy for dealing with psychological threats such as feeling powerless."
Source: University of Chicago
Related stories:
Scientists enhance immune system attacks on cancer
In an Early Edition issue of the
Proceedings of the National Academy of Sciences (PNAS) published online on October 20, 2008, the scientists describe how they used multiple tactics to rev up both innate and adaptive immunity to enhance the body's ability to fight cancer.
Strong leaders who punish freeloaders and cheats can benefit society: research
A strong leader who punishes cheats and freeloaders can increase the cooperation and riches enjoyed by the rest of the group, according to psychology and economics research at the University of British Columbia, Sheffield Hallam University and the University of Kent.
Changes in work force, not pay, narrowing the gender wage gap
The apparent narrowing of the wage gap between working men and women in the last 30 years reflects changes in the type of women in the workforce, rather than in how much they're being paid, according to groundbreaking new research by Brown University economist Yona Rubinstein and Casey Mulligan of the University of Chicago. Rubinstein says the impression that the labor market treats women better today than three decades ago is a "statistical illusion." The findings are published in the August issue of
The Quarterly Journal of Economics.
Study shows cholesterol-lowering power of dietitian visits
Worried about your cholesterol? You may want to schedule a few appointments with a registered dietitian, to get some sound advice about how to shape up your eating habits, according to a new national study led by University of Michigan Health System researchers.
Vitamin B1 biosynthesis: Think Rubik's cube
(PhysOrg.com) -- A key enzyme in the biosynthesis of vitamin B1 has somehow evolved the ability to perform a complex series of some 15 to 20 steps, report two Cornell chemists.
Spansion sues Samsung over flash memory patents
(AP) -- Spansion Inc. wants to block U.S. sales of iPods, BlackBerry gadgets and other devices because memory chips made by Samsung Electronics Co. and used in those products allegedly violate Spansion patents.
Safe storage of greenhouse-gas carbon dioxide
To prevent global warming, researchers and policymakers are exploring a variety of options to significantly cut the amount of carbon dioxide that reaches the atmosphere. One possible approach involves capturing greenhouse gases such as carbon dioxide at the source — an electric power plant, for example — and then injecting them underground.
Hybrid cars too quiet for pedestrian safety? Add engine noise, say human factors researchers
Important pedestrian safety issues have emerged with the advent of hybrid and electric vehicles. These vehicles are relatively quiet—they do not emit the sounds pedestrians and bicyclists are accustomed to hearing as a vehicle approaches them on the street or at an intersection. In a recent study, human factors/ergonomics researchers examined participants' preferences for sounds that could be added to quiet vehicles to make them easier to detect.