Thinking about the past makes us want to spend more now
Recent research suggests that reminiscing about the past weakens our desire to hold on to money, instead fostering social connectedness.
Lasaleta, J. D., Sedikides, C., & Vohs, K. D. (2014). Nostalgia weakens the desire for money. Journal of Consumer Research, 41(3), 713-729.
The study
129 people were split into 2 groups, with half asked to either write about a time when they felt nostalgic or a neutral event. After writing, everyone was given $5 to distribute between themselves and a random other.
The results showed that on average, neutrals only gave away $1.43, whereas nostalgics gave $2.
Lasaleta, J. D., Sedikides, C., & Vohs, K. D. (2014). Nostalgia weakens the desire for money. Journal of Consumer Research, 41(3), 713-729.
Key Takeaways
Understand what nostalgia means for your target audience. Brands, products and campaign messaging can all gain from referring to the past to loosen our wallets. Nintendo are now rereleasing their 1985 NES console, for example.
Use to promote social behaviour. Since nostalgia causes a reduction in one’s desire for money, it can instead be used to increase charitable donations or promote participation in a charitable event.
Digital nostalgia is growing, as our online history of archived experiences deepens. The opportunity to capitalize upon this powerful effect will only increase. e.g. Facebook is now reminding us of our past experiences, using nostalgia to keep us emotionally bound to their network.
In further detail
Thinking about the past makes us want to spend more now
Recent research suggests that reminiscing about the past weakens our desire to hold on to money, instead fostering social connectedness.
Lasaleta, J. D., Sedikides, C., & Vohs, K. D. (2014). Nostalgia weakens the desire for money. Journal of Consumer Research, 41(3), 713-729.
The study
129 people were split into 2 groups, with half asked to either write about a time when they felt nostalgic or a neutral event. After writing, everyone was given $5 to distribute between themselves and a random other.
The results showed that on average, neutrals only gave away $1.43, whereas nostalgics gave $2.
Lasaleta, J. D., Sedikides, C., & Vohs, K. D. (2014). Nostalgia weakens the desire for money. Journal of Consumer Research, 41(3), 713-729.
Key Takeaways
Understand what nostalgia means for your target audience. Brands, products and campaign messaging can all gain from referring to the past to loosen our wallets. Nintendo are now rereleasing their 1985 NES console, for example.
Use to promote social behaviour. Since nostalgia causes a reduction in one’s desire for money, it can instead be used to increase charitable donations or promote participation in a charitable event.
Digital nostalgia is growing, as our online history of archived experiences deepens. The opportunity to capitalize upon this powerful effect will only increase. e.g. Facebook is now reminding us of our past experiences, using nostalgia to keep us emotionally bound to their network.
In further detail
Thinking about the past makes us want to spend more now
The study
129 people were split into 2 groups, with half asked to either write about a time when they felt nostalgic or a neutral event. After writing, everyone was given $5 to distribute between themselves and a random other.
The results showed that on average, neutrals only gave away $1.43, whereas nostalgics gave $2.
In detail
Scarcity
We value things more when they’re in limited supply
Social Proof
We copy the behaviors of others, especially in unfamiliar situations
Prospect Theory
A loss hurts more than an equal gain feels good
Reciprocity
We’re hardwired to return kindness received
Framing
We make very different decisions based on how a fact is presented
Loss Aversion
We feel more negative when losing something than positive when we gain it
Default Effect
We tend to accept the option pre-chosen for us
Anchoring
What we see first affects our judgement of everything thereafter
Fast & Slow Thinking
We make knee-jerk spontaneous decisions that can cause regretful damage
Dynamic Norms
We’re more likely to change if we can see a new behavior developing
Salience
Our choices are determined by the information we're shown