Buyer's remorse
Encyclopedia
Buyer's remorse is the sense of regret after having made a purchase. It is frequently associated with the purchase of an expensive item such as a car or house. It may stem from fear of making the wrong choice, guilt over extravagance, or a suspicion of having been overly influenced by the seller.
may be rooted in various factors, such as: the person's concern they purchased the wrong product, purchased it for too high a price, purchased a current model now rather than waiting for a newer model, purchased in an ethically unsound way, purchased on credit that will be difficult to repay, or purchased something that would not be acceptable to others.
In the phase before purchasing, a prospective buyer often feels positive emotions associated with a purchase (desire, a sense of heightened possibilities, and an anticipation of the enjoyment that will accompany using the product, for example); afterwards, having made the purchase, they are more fully able to experience the negative aspects: all the opportunity costs of the purchase, and a reduction in purchasing power
.
Also, before the purchase, the buyer has a full array of options, including not purchasing; afterwards, their options have been reduced to:
Buyer's remorse can also be caused or increased by worrying that other people may later question the purchase or claim to know better alternatives.
The remorse associated with some extreme shopping
activity may be, again, a sign of some deeper disquiet; normal "buyer's remorse" should not be confused with the complex emotional dynamics of "shopaholic
" behavior, any more than eating too much on special occasions should be confused with a serious eating disorder
such as bulimia.
. One will either seek to discount the new evidence, or truly regret and try to renounce the purchase.
Causes
The anxietyAnxiety
Anxiety is a psychological and physiological state characterized by somatic, emotional, cognitive, and behavioral components. The root meaning of the word anxiety is 'to vex or trouble'; in either presence or absence of psychological stress, anxiety can create feelings of fear, worry, uneasiness,...
may be rooted in various factors, such as: the person's concern they purchased the wrong product, purchased it for too high a price, purchased a current model now rather than waiting for a newer model, purchased in an ethically unsound way, purchased on credit that will be difficult to repay, or purchased something that would not be acceptable to others.
In the phase before purchasing, a prospective buyer often feels positive emotions associated with a purchase (desire, a sense of heightened possibilities, and an anticipation of the enjoyment that will accompany using the product, for example); afterwards, having made the purchase, they are more fully able to experience the negative aspects: all the opportunity costs of the purchase, and a reduction in purchasing power
Purchasing power
Purchasing power is the number of goods/services that can be purchased with a unit of currency. For example, if you had taken one dollar to a store in the 1950s, you would have been able to buy a greater number of items than you would today, indicating that you would have had a greater purchasing...
.
Also, before the purchase, the buyer has a full array of options, including not purchasing; afterwards, their options have been reduced to:
- continuing with the purchase, surrendering all alternatives
- renouncing the purchase
Buyer's remorse can also be caused or increased by worrying that other people may later question the purchase or claim to know better alternatives.
The remorse associated with some extreme shopping
Shopping
Shopping is the examining of goods or services from retailers with the intent to purchase at that time. Shopping is an activity of selection and/or purchase. In some contexts it is considered a leisure activity as well as an economic one....
activity may be, again, a sign of some deeper disquiet; normal "buyer's remorse" should not be confused with the complex emotional dynamics of "shopaholic
Shopaholic
Shopaholic is a series of novels written by the UK author Sophie Kinsella, who also writes under her real name Madeleine Wickham. The books follow protagonist Becky Bloomwood through her adventures in shopping and life. As of September 2010, there are six books in the series. The entire series has...
" behavior, any more than eating too much on special occasions should be confused with a serious eating disorder
Eating disorder
Eating disorders refer to a group of conditions defined by abnormal eating habits that may involve either insufficient or excessive food intake to the detriment of an individual's physical and mental health. Bulimia nervosa, anorexia nervosa, and binge eating disorder are the most common specific...
such as bulimia.
Origins
Buyer's remorse, when evidence exists that it is justified, is a classical example of cognitive dissonanceCognitive dissonance
Cognitive dissonance is a discomfort caused by holding conflicting ideas simultaneously. The theory of cognitive dissonance proposes that people have a motivational drive to reduce dissonance. They do this by changing their attitudes, beliefs, and actions. Dissonance is also reduced by justifying,...
. One will either seek to discount the new evidence, or truly regret and try to renounce the purchase.
See also
- Caveat emptorCaveat emptorCaveat emptor is Latin for "Let the buyer beware". Generally, caveat emptor is the property law doctrine that controls the sale of real property after the date of closing.- Explanation :...
- Post-purchase rationalizationPost-purchase rationalizationPost-purchase rationalization is a cognitive bias whereby someone who purchases an expensive product or service overlooks any faults or defects in order to justify their purchase...
- Regret (decision theory)Regret (decision theory)Regret is defined as the difference between the actual payoff and the payoff that would have been obtained if a different course of action had been chosen. This is also called difference regret...
- Winner's curseWinner's curseThe winner's curse is a phenomenon akin to a Pyrrhic victory that occurs in common value auctions with incomplete information. In short, the winner's curse says that in such an auction, the winner will tend to overpay...
- Friendly FraudFriendly FraudFriendly fraud, also known as friendly fraud chargeback, is a credit card industry term used to describe a consumer who makes an Internet purchase with his/her own credit card and then issues a chargeback through his/her card provider after receiving the goods or services...