December 20, 2011 | 9:00 AM | By

Why Shoppers Spend Money They Don’t Have

Here’s something to ponder as the holidays approach: people spend money to offset their perceived lower statuses in society. That’s according to a set of University of San Diego studies examining the effects of racial stereotypes on shoppers’ spending habits.


The effect is worse when a person’s racial or economic status is on his mind. In one study, the researchers recruited both white and black participants at a shopping mall, then handed a list of racial stereotypes about black people to half of the participants. When the shoppers were offered a set of designer headphones, one group offered to pay a lot more than the others: black customers who had been reminded of their race. The study concluded that marginalized groups who attempt to assert their worth with their wallets feel more satisfied in the short term, even if their purchasing decision effectively kicks them when they’re down.

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