Happily for retailers, research shows compulsive savers tight and compulsive shoppers spend approximately the same amount on gifts during the holiday season.
The NSF did a Q&A with Scott Rick, professor of marketing at the University of Michigan about his research on tightwads and spendthrifts and their spending during the holiday season. It’s an interesting presentation which covers underlying differences between these two types of shoppers and also gives recommendations about how to market to tightwads to encourage them to increase their purchase consumption.
Given the current economic times and a trend toward reduced discretionary spending, understanding the “tightwad” mentality has become increasingly important. Rick and Lowenstein’s research on the decision making and emotional aspects of spending provides a wealth of information about how consumers shop and the path to purchase.
Check out the webcast of the discussion here or the research paper by Rick, Cryder, and Loewenstein (2008), “Tightwads and Spendthrifts,” in the Journal of Consumer Research.
