A new spending index today reveals that Brits take considerably longer per pound buying non-essential lifestyle items than major purchases such as a new car or white goods.
The “HPI Cash Consideration Index” finds that the average consumer will spend over eight days deciding on a holiday destination, double the time spent choosing a car (4.2 days). A further four out of 10 (40 percent) British shoppers openly admit to spending more time searching for a perfect outfit than researching a car purchase.
The index pinpoints the exact time Brits take to make a range of purchases, from a family holiday or a car, to a pair of shoes. Using figures from vehicle check experts HPI, leading retail psychologist Dr Tim Denison tracked the time spent by over 1000 shoppers on a range of purchasing decisions. Weighing this against the cost of individual items he has created the HPI Cash Consideration Index which outlines British shoppers’ spending priorities.
The index reveals an “inversely proportional purchase pattern”, with handbags topping the HPI Cash Consideration Index as the average shopper spends 53 minutes and 12 seconds per pound making their decision. This contrasts with a mere 36 seconds per pound invested in the average car purchase.
Dr Tim Denison has highlighted some key consumer characteristics that drive this inversely proportional purchase pattern:
High v low involvement goods – Glossy magazines and lifestyle TV shows fuel the idea that what we wear says a lot about us. Clothes buying is therefore an involved decision, over which we regularly spend time. This builds a sense of familiarity with the purchase process and approximately a third (32 percent) of respondents said they feel confident in their fashion know-how. In comparison only 13 percent consumers feel equipped to make confident decisions when buying a car explained by the occasional nature of such purchases but also less emotional involvement with the product itself.
“The study demonstrates a lack of consumer understanding about the risks of buying without thorough research, failure to invest sufficient time in researching important purchase decisions, such as buying a used car, has left one in two consumers feeling ripped off or overcharged,” says Alan Bishop of HPI. “A wise buy is not just about finding a good deal, it’s about taking the time and doing the research, finding the right product to suit our individual needs and lifestyles. Buying on impulse can end up costing far more in the long run if a product fails to meet consumer’s expectations. A little bit of care goes a long way.”