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Sometimes, a new item purchase can make all the others look ugly and outdated, leading to a series of unplanned expenses. You may end up buying shoes, pants, shirt, and even a dress just to match the new bag. Similarly, buying a car might make you want to purchase new rims and order a luxurious interior right away. This phenomenon is known as the Diderot Effect, which scientists discuss in the latest issue of the psychology guidebook.
Diderot’s Effect is a tendency for individuals to lose interest in their old possessions after purchasing something new. This desire to replace old things immediately can lead to uncontrolled and unnecessary spending, creating what is commonly referred to as the spiral of consumption. The scientific community adopted the terms “spiral of consumption” and “Diderot’s Effect” in the late 1980s, thanks to the research of Canadian anthropologist and consumption model researcher, Grant McCracken. This type of behavior was first described in the 18th century by the French philosopher Denis Diderot in his essay “Regrets on My Old Dressing Gown”.
When the daughter of the philosopher was getting married, he found himself unable to afford the dowry. It was then that the Russian Empress Catherine the Second learned of his situation. She offered to purchase Diderot’s personal library for 10,000 livres, which in today’s equivalent would amount to around $50,000. In a show of respect for the philosopher, Catherine allowed him to keep the library for lifelong use and even appointed him as its librarian.
Upon receiving the money from Catherine the Second, Diderot was elated and purchased a new purplish robe. However, this purchase created an unforeseen issue. The new outfit overshadowed everything else in his home, leading him to believe that he needed to dispose of all his other possessions and replace them with items of similar beauty.
As a result, a significant portion of the money he received from Catherine was spent, leaving him poorer than before. In an essay, Diderot wrote, “I was the absolute owner of my old robe, but I became the slave of the new one,” highlighting the impact of this behavior.
This phenomenon is known as the Diderot Effect and can occur in everyday consumption situations. It is not limited to new purchases but can also be triggered by upcoming events where individuals feel the need to look their best, leading to a spiral of unnecessary spending.
These thoughts and attitudes may suggest that an individual has fallen prey to the Diderot Effect:
- Purchased a new shirt because the old one was worn out, but now needs to buy matching pants, shoes, socks, and a tie.
- Bought a gym membership, but now wants to purchase new sneakers, workout gear, a swimsuit, goggles, and a swim cap to use the pool.
- Upgraded their car and now desires new wheels, film or wax for the car, and a remote start installation.
- Bought tickets to the Maldives and wants to purchase new expensive clothing, swimwear, sunglasses, and shoes to look their best, even if it means taking out a loan.
- Excited about getting married and wants an unforgettable wedding experience, including the most expensive restaurant, hosts, DJs, photographers, outdoor registration, and a honeymoon.
- Plans to go to the theater but has nothing to wear because everything in the closet has been worn many times.
- Unable to move into a new apartment with old furniture and therefore wants to buy a new bed, sofa, and order shelves.
All of these scenarios demonstrate the Diderot Effect, where the purchase of one item leads to the desire to buy more to match the new item. It can result in unnecessary expenses, creating a spiral of consumption that can be difficult to break.
The Diderot Effect’s Roots
Desire to express one’s identity
According to psychologists, people’s decisions to buy new items are not solely based on rational factors or personal preferences. Their ideas about their own identity, such as their social group, subculture, class, and gender, also play a crucial role.
When the purchased items match each other well, it creates a more cohesive and integral image, sending a clearer signal about their identity to others. This may lead to an unconscious desire to acquire perfectly coordinated sets of items.
Desire to increase one’s status
In addition to reflecting a person’s identity, another symbolic function of things is to showcase their status in society. The equation is straightforward: the more expensive and high-quality the items, the wealthier and more prestigious their owner appears. This can lead people to purchase one expensive and prestigious item after another, even if it’s not financially feasible, in an attempt to project a higher social status than they actually have.
Due to hedonistic adaptation
Scientists describe a common tendency among people to rapidly adapt to their material possessions and stop experiencing enjoyment from them. As a result, people begin to place less value on what they already possess and can easily part with it. This leads to a desire to regain the pleasure of owning things, which drives them to strongly desire what they currently do not have.
Due to difficulties in regulating emotions
The act of shopping can often trigger a surge of positive emotions in individuals, as the process of buying can raise the levels of dopamine, a neurotransmitter that positively impacts mood. However, some people may become accustomed to using this mechanism to feel better when they experience negative emotions such as fear, anxiety, sadness, boredom, or loneliness. This can lead to impulsive purchases, which in turn can trigger a spiral of consumption, similar to the Diderot Effect.
The Diderot Effect: A Look at the Potential Dangers
The Diderot effect hinders many people from improving their relationship with money and making it healthier due to their tendency to make irrational and spontaneous purchases, resulting in them saving less than they could and getting into debt more often, and taking out loans.
In turn, the lack of financial stability negatively impacts people’s psychological well-being. There is evidence that people’s level of anxiety often increases due to financial problems, which leads to problems with sleep and an increased risk of depression and other serious disorders.
The cause of family disputes is often a person’s tendency to make impulsive purchases, causing financial problems that often lead to divorce.
What actions are possible
To protect against the Dunning-Kruger effect, it is best to minimize impulsive purchases that can lead to a spiral of consumption. Controlling one’s financial behavior is essential in achieving this goal.
Preparing for a major expenditure
When planning a significant purchase, carefully weigh the pros and cons. For instance, ask yourself questions such as, “Do I genuinely need this item?” and “How will it enhance the quality of my life?” Additionally, consider if the item will functionally duplicate things you already own. This will help you make an informed decision when making a purchase.
Begin keeping a record of spontaneous buys
To help cool emotions and avoid impulsive purchases, keep track of how much you spend on an item, as well as how many times you use it. When you feel the urge to buy something similar, consult your notebook to determine if you will genuinely use it.
When you feel an urge to purchase
When you feel an unbearable desire to buy something, try to determine where this desire originated. Perhaps the item is genuinely necessary for you, and you are sure that you will frequently use it. In this case, confidently make the purchase. Alternatively, maybe you had a bad day where your children were fussy in the morning, and your boss was grumbling at work. As a result, you may be trying to improve your mood with another purchase.
Remember your global financial goals
For instance, if you are saving for your children’s education or attempting to pay off your mortgage as soon as possible, this will involve the rational part of your brain, and the chances of making an impulsive purchase will decrease. However, if this strategy fails, there is another approach. Postpone the purchase for at least a day. By the end of this period, you will likely find that the desire has significantly subsided.
Set aside a fixed sum every month for leisure spending
One strategy to avoid harming your budget with impulsive purchases is to save a monthly amount for enjoyment purchases. Remember, money is a tool and meant to be spent. There’s nothing wrong with treating yourself to a purchase every once in a while, but plan these expenses realistically. Only spend on things you genuinely and deeply love, rather than on things that catch your fleeting fancy.
Another helpful tip is to buy items that complement what you already have to avoid starting a new spending spiral.
Maximize the use of all items you own, even the ones you purchased impulsively.
Put on your dressy clothing for no particular occasion. Cook more frequently using the dishes you bought with aspirations of becoming a master chef. Dedicate more time to outdoor activities to utilize the camping gear that you splurged on last year. This approach will not only reduce your worries about money spent on impulse purchases, but it will also enhance your life with additional excitement and interest.
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