The Basics: What drives us to buy buy buy??

I hate making impulse purchases. Because of that I have a habit of surveying each and every shop in common to make sure that I buy the cheapest woolen sweater offered. Although in the end I'd end up not buying anything because I was too tired to go back to the 2nd shop which offered the lowest price.

Admit it or not, generally we like cheap items. Or cheap-ER items. Primark any day. However the price tag is not the only factor of purchasing an item. So what are they then?

1. Price of substitutes - You LOVE MNG. However, a black tank top at MNG has the same quality as a black tank top in PRIMARK. This means that the tank top at PRIMARK is a substitute to MNG's. The only difference is that the one in MNG cost $10 more than it does at PRIMARK. Which do u choose?
2. Price of complements - Lets say that you're thinking of buying the GHD hair straightener which cost $100. Well of course if you buy this, u have to buy a heat protector serum as well or else u'll end up frying your hair. But then by a stroke of badluck, the price of the GHD suddenly goes up to $200 and you decided not to buy it. You wouldn't buy the serum as well would you?? The serum and straightener complement each other. So when one price goes up and you decide not to purchase it, you are not likely going to spend on the other. However, some people do..just because.
3. Our income - When we are students, thrift shops and carboot sales was our world. In economics, they call the items sold at these kind of places as inferior goods. The normal goods are those High Street brands such as Zara and Topshop. The demand for inferior goods were high during those university years while demand for normal goods were low. However as we graduate and earn more income, a shift in demand happens and now we find ourselves walking down the high street more often than strolling at a carboot sale, if ever.
4. Tastes and preference - Well this is straightforward actually - you buy it coz you love it. However this might change with time. Fashion is an obvious example. What is fashionable this year will be out of fashion next year. Think of skinny jeans for example. One day you might look back and think " what was I thinking buying THAT??" lol!
5. Price expectation - If you expect price to fall in the future, then it may be wise to wait and delay your purchase. For example, the recently launched iphone 4. one word:EXPENSIVE! However rumour has it that the new iphone 5 will be out in June 2011. By that time the price of iphone 4 will drop. Unless you are really into cutting edge technology, it might be wise to wait dont you think?

What all these tell us is that we do have a choice. The Christmas sale is coming up and it might be good to plan ur shopping. Ask yourself questions like "Do i really need this although it is cheap as hell?" "Can't I just wait for a few weeks til sale?" "Why buy this when the other is much cheaper?" . On that note, PURCHASE WISELY PEOPLE! :D