- The Three bs
- Budget Aids
- Two Motivations for Buying
- Buyer's Homework
- Shopping Prices
- Negotiating a Better Deal
- Common Sense Borrowing
- The Bonus "B"
- Big Hat No Cattle
- Ask for Free Stuff!
- The Debt Book
Emotional and Intellectual Buying: Understand what you are up against
The best purchases are Intellectual. These are purchases you have thought through. Unfortunately many of your purchases will not be Intellectual but Emotional. This is by design. The world of marketing is designed to entice your emotions not your mind. Marketing entices you to run out and buy that new car “now.” Marketing entices you late at night to snack on potato chips and to make late night runs to a Taco Bell restaurant.
You must discipline yourself to distinguish what is motivating you to make a purchase, whether emotions and appetite or your intellect. The best way to distinguish which is to understand what you are up against in the world of marketing.
Marketing strategies play on fear, anxiety, vanity and hunger. Marketing is designed not to give you critical information but to entice you by triggering your emotions and appetite. On the other hand an intellectual purchase will not be based on fear, anxiety or appetite but on where the potential purchase ranks in your hierarchy of Wants and Required Needs.
Hallmarks of Emotional Spending
Emotional Spending has many roots but the hallmarks are the same. The emotional purchase is made without considering how the purchase relates to a Budget or to the hierarchy of your Wants and Required Needs.
What is dangerous about emotional spending is not that you will make big purchases without thinking (although this does happen—people will sometimes purchase a car or a house without considering their budget or the consequences) but that you will make many little purchases.
Marketing experts bank on this and market in such a way to capitalize on people’s emotional spending habits for little things. They even have a specialized term to describe this marketing ploy. It is called POP Marketing: Point of Purchase Marketing.
POP Marketing is a marketing strategy designed to get you to emotionally purchase small items at the point of checkout. All the little products crowding the checkout line at your favorite store, the candy, magazines, new release movies and pocket lighters, are there to entice you to make a purchase you had probably not intended to make. Because these items are priced low it is easy for the emotional buyer to justify the purchase. But these POP purchases amount to billions of extra dollars for retailers. There is nothing small about the numbers.
Emotional buying is not primarily the fault of advertisers. The fault lies with we who purchase. Another hallmark of emotional buying is that the buyer is putting wants before needs.
Hallmarks of Intellectual Spending
The main hallmark of Intellectual Spending is that a person takes the time to think through their purchases and consider their budget.
Another Hallmark of Intellectual Spending is that a person Shops Prices. This means you take the time to consider a better deal. And a Hallmark of the person who Shops Prices is the person is ready to Negotiate a better price. Negotiation is easiest when you actually know different options. Maybe you find the car you want with the dealer you want because that dealer has the best service record. But another dealer offers the car for a better deal. An Intellectual Spender will be willing to learn this information then take it back to their desired dealer and ask to Negotiate the price.
The bottom line is that no purchase needs to be made in haste. Slow things down and take your time and your will find your bottom line will start showing signs of rapid improvement.