Insightful NY Times article about the psychology of online shopping and the multitude of ways it can trip us up from paying too much for items, to feeling regret to not making a decision at all. I've put each observation in the form of a question so you get the discussion going with your students about their experiences with online shopping: 

• How do those targeted ads make you feel after you make an online purchase? "Over the next week I was hounded by online ads for the same sneakers I’d bought, along with others I’d rejected and many more I hadn’t even seen. (Amazon also showcased items “inspired by” my browsing history.) I tried to ignore them, but after seeing so many ghosts of sneakers past and passed up, I began second-guessing my purchase."
• How do you feel about having so many choices when you shop online? : "Those cookie-based ads and targeted emails reminding you of other possibilities reinforce the paradox of choice, the oft-cited theory of Barry Schwartz, the psychologist, that increased options leave us more dissatisfied."
  • We actually feel better when we have less information! "Researchers found that the less knowledge consumers had about something before a purchase, the better they expected it to be — and the more they convinced themselves that they liked it afterward."
• And let's not forget about the reviews..how do you feel when you see negative reviews about the item you want? "But the sprawling internet bazaar is filled with scathing critiques, and every pertinent spec exists somewhere online for the diligent buyer to seek out. That one-star rating is hard to forget when your product is failing in the exact way the unhappy reviewer described."
• How do you think paying with cash impacts your shopping decision when compared to the ultimate in convenience, the 1-click button on Amazon?: "The tactility of how one finalizes the transaction itself can have an effect on remorse, too. Mr. Lindstrom found that 93 percent of consumers feel a stronger connection to cash than to credit cards and are more careful when spending with it. Likewise, for the least tactile connection he studied, Amazon’s 1-Click Ordering, 70 percent of respondents said it made them spend more money than even with a credit card.
• How many times have you bought something online and then searched your friends' social media feeds?:  "Buying something online can also lead quickly to a social-media search after the fact for friends’ and strangers’ superior products (or “better” use of the same product)."

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Here's an excellent 8-minute PBS NewsHour video, Why We Crave What's Cool, to pair with this article. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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