EVANSTON, Ill., June 27 (UPI) -- A U.S. study may explain why so many Americans who are deeply in debt still spend beyond their means, researchers said.
Derek D. Rucker and Adam D. Galinsky of Northwestern University said the finding suggests that people use consumer purchases to compensate for psychological states of insecurity.
The researchers asked participants to describe either a situation in which they had power over another person or one in which someone had power over them. They were then shown items and asked how much they would be willing to pay.
Participants who recalled situations in which they were powerless were willing to pay more for items that signal status, like silk ties and fur coats, but not products like minivans and dryers. They also agreed to pay more for a framed picture of their university if it was portrayed as rare and exclusive.
"Consider two individuals, one a successful millionaire and the other a recently demoted banker, both might view a Rolex watch as a clear status symbol," the authors said in a statement. "However for the millionaire, wearing the watch might not make the millionaire feel any more powerful, but wearing the same watch might make the banker feel significantly more powerful."
The findings are published in the Journal of Consumer Research.
