Consumer behavior

What's the difference between a one thousand peso bill and a thousand pesos in twenty-peso denominations? To a kid, a one thousand peso bill could mean big money while fifty twenty peso bills may mean a lot of money. But worthwise, they are as good as any thousand pesos stored in the bank, in the pocket or in the wallet. But the form of your thousand pesos can affect your spending behavior whether you're six or sixty years old.

Most of us are not likely to spend a thousand peso bill than when you're faced with a bucket of one-thousand peso coins or any other smaller denomination says the Journal of Consumer Research published in December 2009. The authors, Priya Raghubir and Joydeep Srivastava, of the study think that the bigger the denomination, the inflexible they become. This is quite true specially when you buy a pack of noodles or can of sardines at your favorite sari-sari store.       

Art Markman a cognitive scientist at the University of Texas, on the other hand, interprets this behavior on a different light. Markman suggests that larger bills are typically associated with larger purchases while when you have a particular amount of money in small bills, "it helps you to think about spending it in a series of small purchases. You are willing to make these small purchases, though each of them will be for only a small amount. So, you spend money easily, but you spend a small amount each time."

Regardless of whatever interpretation we make out of the research, the bottom to every spending decision we make as consumers depends on how we perceive of our economic resource or wealth perception and the agents that influence that decision like the physical necessities and material comforts. In other words, our motivation to spend is governed essentially by two things -- by how much we think we can spend and by the constraints of our actual and perceived needs. So in real life, there are poor people who are feeling rich as much as there are many rich people who are feeling poor or wealth perception. Others spend for survival while a few others think they cannot survive without their cars or mansions.

In the final analysis, the large part of our economic fact of life is created or perceived as we only spend only a third of our income for basic necessities. Nowadays, consumers spend a lot of money for the things that they don't actually need and what's also lamentable is that consumers have trouble distinguishing between luxury and necessity. Comfort, mobility, speed and "cool to own" have increasingly become part of the definition of what's essential such as owning a Cable TV, Flat TV, airconditioning, celphone, microwave, dryer and a host of other comforts.

And as definitions become more obscure, non-essential industries exploit the opportunity of this modern yet skewed mindset and values -- tobacco, alcohol, jewelry, cosmetics and gambling spend a lot of money in subtle advertising to be good alternatives to happiness and a boost to one's personal worth.  

I don't want to attribute the false sense of values to consumers alone. Media is also to be blamed for being unable to regulate misleading advertising and for promoting these wrong values to consumers. And for the large part, the economic system is to be faulted for the unregulated flow of unwanted goods as well as for encouraging a system of unmoderated consumption of the same.    

“The truth is we are all caught in a great economic system which is heartless.” Woodrow T. Wilson

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Inviting all Bosconians from Don Bosco Technical High School (DBTHS) now Don Bosco Technology Center (DBTC) to attend the "2010 Alumni Homecoming cum Family Get Together" on January 24, 2010. Kicking off the whole day event will be a concelebrated mass to be held at DBTC on Punta Princesa in Labangon to be followed by a motorcade towards Cebu Wetland Resort in Tagunol, Cebu City for family lunch and as the afternoon event venue.

Organizers have lined up activities to give Bosconians the opportunity to reunite, network and socialize, get caught up with events on campus and find out about opportunities to get involved. Aside reconnecting with classmates and friends, games and entertainment have also been prepared for families to enjoy and have fun all through out the day such as bingo social, raffles, magic show, karaoke and fishing contests and family rides. A fireworks display will wrap up the whole affair. 

Registration will be done at DBTC and registration fee is P100 for Bosconians, which includes bingo card and an entrance to Wetland Park and P50 per family member, which covers entrance to the park. Food and drinks are available for sale at the said resort.

Bosconians are encouraged to spread this press announcement. For details, contact: Jonathan Vestil (09176215613), Michael Odi (09088827708) or visit our Facebook account [email protected] and dbcai.wetpaint.com/page/Announcements.

Send emails to [email protected]