People tend to shell out more money when they think about their past, reveals a new study.
Authors, Jannine D. Lasaleta from Grenoble Ecole de Management), Constantine Sedikides from the University of Southampton, and Kathleen D. Vohs from University of Minnesota, conducted six experiments that looked at how much people were willing to spend, donate, and value money when feeling a sense of nostalgia-evoked social connectedness.
In one study, the consumers who were asked to think about the past were willing to pay more for a set of products than consumers who were told to think about new or future memories. Another study showed an increased willingness to give more money to others after recalling, reflecting, or writing about a nostalgic past life event. Additionally, people who were asked to think about a nostalgic event were less willing to endure unpleasant sounds in exchange for a set amount of money, than consumers who were asked to think about an ordinary event.
The authors noted that during times of recession consumers are more reluctant to part with their money and added that nostalgia could be used to help stimulate a dwindling economy.
They concluded that when people have higher levels of social connectedness and when they feel that their wants and needs can be achieved through the help of others, their ability to prioritize and keep control over their money becomes less pressing.
The study is published in the Journal of Consumer Research.