The bottom dollar effect
Do you run out of money at the end of the month? New research shows that it can lower the level of satisfaction felt when buying something with the last few pennies in your bank account, a newsletter by ad agency Ogilvy Change says citing research from the Journal of Consumer Research. Known as the “bottom dollar effect”, the article suggests treating yourself on pay day, when you’ll feel most satisfied with whatever you buy.
What might happen if a failing MBA student buys a pricey watch – would it help the student to study more diligently? A blog on Forbes cites a study that finds the expensive watch will only make the student focus on their shortcomings. It suggests that grades may be improved if running shoes or a backpack are bought instead, as this less expensive purchase would remind the student of their faults, and perhaps bring focus back to study.
How millennials spend?
Millennials (a generation born between 1981 and 2000) are spending money differently from previous generations a blog on the Atlantic says. Preferring to spend on new experiences and adventures and to reward socially responsible companies they connect with, the blog explains. With over 84 million Millennials in the US alone, this is could be the generation to watch.