Luxury goods, why are people willing to owe for buying luxury goods?

Perhaps you include people who could not understand why would anyone in debt to a credit card, only to buy luxury goods at a price tens of millions. Or, take a risk with the unsecured loan with high interest to buy luxury items that they need not necessarily true.

Perhaps the most recent research published in the journal Personality and Social Psychological Science may provide the answer. Buying luxury goods with high prices could help encourage a sense of confidence. When a person is not able to get it, he is even willing to swipe a credit card, though it would leave a huge debt.

In that study, it appears that people who had dropped his ego is more willing to do anything in order to make purchases of luxury goods, alias in installments. According Niro Sivanathan of the London Business School and Nathan Pettit from Cornell University, the desire to buy luxury goods and designer is often done after their self-esteem fall (e.g. due to be insulted or say stupid). By making a purchase like this, they hope to restore self-esteem.

In addition, the two researchers also found that most people are more likely to make a purchase with a credit card, because buying in cash psychological impact that is uncomfortable for them.

So, before you are tempted to fall into the same hole, better consider carefully when to buy luxury goods at a time when financial conditions are not possible. If the problem is ego, there is still some other solution to restore it.

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