Have you ever felt an urge to buy something just to complement an item that you’ve recently acquired? What about having a nagging sense of wanting to upgrade to the latest model despite still having a perfectly functional piece? If you did, then you might be under the spell of what is called the Diderot effect, and we might just have the antidote for it.
The Diderot Effect, named after the French philosopher Denis Diderot, refers to the psychological urge to attain additional possessions that are perceived to be consistent with a newly acquired item. This seemingly harmless impulse can potentially set off a chain of purchases, leading to a bigger expenditure than initially intended.
Terno, which is a common term used in the Philippines, is a good example of this phenomenon. We tend to purchase more products to match with the item that we’ve recently acquired.
Given how people easily succumb to the Diderot effect, companies utilize it to encourage consumers to spend more, particularly during the season of giving. Therefore, knowing the common ploys that these companies use to trigger the urge can prevent us from spiraling out of control.
Ecosystem Marketing. Tech companies often create product ecosystems where devices work seamlessly together. For instance, Apple promotes its ecosystem of products, including iPhones, MacBooks, Apple Watches, and AirPods. Once a consumer owns one product within the ecosystem, they are more likely to purchase additional devices to ensure compatibility and a seamless user experience.
Cross-Selling and Upselling. E-commerce platforms often employ cross-selling and upselling techniques. When a consumer adds an item to their cart, they may be presented with suggestions for complementary products or upgraded versions. This prompts additional purchases based on the desire to improve or enhance the original purchase.
Product Bundling. Companies often create bundles or packages with a primary product and complementary items. For example, a smartphone manufacturer might offer a bundle that includes a protective case, a screen protector, and headphones, along with the phone. This encourages consumers to purchase additional items that enhance the functionality or protection of their primary purchase.
Now that we have some idea of the common strategies companies use, let’s look at some of the things that you can do to avoid falling for these traps.
- Creating a budget, and sticking to it. Establishing a budget for the holiday season enables us to stay within our means and avoid overspending. By setting financial limits and allocating specific amounts for gifts, decorations, and entertainment, one can resist the urge to purchase unnecessary items.
- Planning ahead. Making a list of things we need to buy before heading out to the mall will be useful, especially during the holiday rush. Researching online with the Philippines’ undisputed fastest Internet, the PLDT Home Fiber Plus Plan, is always a great way to start. Having a list, along with setting a budget, will allow us to focus on what is important and lessen the likelihood of getting tempted by all the promos and sales at the mall.
- Thoughtful gifting. Instead of giving in to the notion that bigger and more expensive gifts are always better, consider the thoughtfulness and personalization of a present. Small, meaningful gifts can create lasting impressions that outweigh the temporary excitement generated by lavish purchases.
Whether buying a gift for someone or rewarding yourself for a successful year, there’s no getting around the simple fact that splurging a bit more than usual is a common occurrence during the holiday festivities. Hopefully, we can all be empowered to make more thoughtful purchasing decisions and help you close out the year debt-free. Happy shopping!