“As much money and life as you could want! The two things most human beings would choose above all – the trouble is, humans do have a knack of choosing precisely those things that are worst for them.” – J.K. Rowling, Harry Potter and the Sorcerer’s Stone

Have you ever found yourself trapped in a situation where you purchase one item after the other, and you immediately feel the need to replace the older ones, because you no longer like them? Or maybe because you feel they’re no longer appealing? Perhaps because you think they look outdated? or not up to standard anymore?

-Maybe you purchased a new house or apartment and you no longer want the old (not so beautiful) furniture. And so you decide buying new furniture to match your new home would be the best thing to do?

-Or you’ve moved into a new office and all you want is everything brand new? Including tech gadgets, stationery, etc.?

-Or if you are keen on how fashionable you look, you find yourself buying a new pair of shoes to match your handbag?

-Or a coat to match your dress?

-Or a watch to match your new car?

-Or a new dress, because those dresses in your closet (even with tags on them) or so last season?

I know a number of women (including myself), who’ve struggled with this repeated behaviour of shopping for clothing, shoes and handbags, make up etc, just because we felt the necessity of upgrading our wardrobes. Or sometimes simply because we felt certain items we already possessed were not ‘good enough‘ or maybe ‘sooo last season.‘

It’s Cray Cray! Crazy. And that craziness has a name, which we’ll find out in a few seconds.

Well, if you find yourself in a situation where you purchase an item, or series of items just to upgrade some other items you already own, then you might want to officially consider yourself a victim of the Diderot Effect!

The term Diderot Effect was coined in 1988, by anthropologist and scholar of consumer patterns Grant McCracken-in his book entitled ‘Culture and Consumption: New Approaches to the Symbolic Character of Consumer Goods and Activities.’ The phenomenon was named after French philosopher Denis Diderot – (1773-1784).

The story of Denis Diderot, as we are told, is about a well educated man who after receiving a beautiful gown from his friend, immediately despised his old shabby tattered gown and got rid of it. Within a short time, he was dissatisfied and felt his new gown was out place among other rugs and cheap furniture he had in possession. And one by one he replaced them all, just to match his magnificent gown. Little did he know that, that was just the beginning of his ‘financial misery’!

In his essay, “Regrets on Parting with my Old Dressing Gown” Dennis Diderot, expresses his regrets and describes the situation and one which led him into debt.

…where is my good, my old housekeeper? What demon obsessed me the day I chased her away for this one!…

What Lessons Can We Learn from Denis Diderot’s Story?

Certainly there are many lessons we can learn here – Both as shoppers and business people.

Marketers and Consumers – As marketers, we can learn about how we can effectively make use of the Diderot Effect, and as consumers, we can learn a lot about how to avoid financial pitfalls due to our spending habits.

Studies show that the Diderot’s Effect is unfortunately very common among a large number of consumers. And with this, i mean a particular group of consumers, especially either – those with a mindset to purchase a set of goods that ‘go to together’, or those consumers who simply keep buying additional goods to ‘complete the series.’

We’re living in times where there is a drastic evolution of consumer purchasing power and people are spending! And there’s nothing wrong with spending money on items you love and as long as you can afford them!

When it comes to discussing financial management and how people spend ‘their’ hard earned money, it’s important to spread this kind knowledge cautiously – Because money matters are quite delicate! And if we’re not informed about how to control our spending habits, things could turn out really ugly!

I like the way Miley Cyrus puts it in her song “We can’t stop”– In fact there is an analysis on Business Insider about what this Miley Cyrus’ song is all about. The article states that the song is about “being stuck in a cycle, and being unable to leave.” The lyrics are powerful. There are several lines that caught my attention. But particular ones are – “And we can’t stop, And we won’t stop…,We run things, things don’t run we…” (Miley Cyrus- We Can’t Stop)

Yes. It’s your money and you can do what ever you want. But if you find yourself slowly slipping into debt, then it’s high time for that little chit chat with yourself! It’s time to have that honest in-depth conversation about that purchasing behavior which is getting out of hand! In the mean time, here are some ways you could start keeping an eye on that uncontrollable spending habit:

1) Avoid unnecessary spending

You don’t have to change your entire wardrobe just because you bought a new pair of jeans, shirt, handbag, dress, heels, etc. Do you really need an expensive watch or hand-bag just because you just bought luxury car brand? Just like Diderot would say:

…I don’t cry, I don’t sigh, but every moment I say: Cursed be he who invented the art of putting a price on common material by tinting it scarlet. Cursed be the precious garment that I revere. Where is my old, my humble, my comfortable rag of common cloth?…

2) Defeat the Urge to buy things you do not ‘need’ when led by emotions

You know, at time we’re carried away by emotions ( some times just petty emotions) and certain life episodes that have an effect on how we make our spending decisions. I know some who shop when they’re sad. And i know some others who shop when they’re excited. Others shop when they’re bored. The thing is, learn how to control your emotions and do not let your negative or positive emotions determine how you spend your money. Take Diderot’s advice-

…My friends, keep your old friends. My friends, fear the touch of wealth. Let my example teach you a lesson. Poverty has its freedoms; opulence has its obstacles…

3) Avoid advertisement exposure and impulse buying/unintended purchases

I know it’s not easy! With the all the money they invest on those advertising channels these days, including mobile advertising , it’s hard to go about without noticing them! And sometimes it’s hard to say NO to those products and services, especially if you have made it a mission become a hunter of bargains.

Isn’t it tempting when you imagine that pair of boots that once cost more than $200, and now all over sudden, you can finally get it for less than $50? Or that luxury dress that was costing more than $500, and now because they are shutting down the store, you can have it for less than $100? Or maybe you can’t help but notice those colorful shopping sale banners, beckoning you to come spend that money?

Today’s smart marketers have mastered the many forms of inducement to make us consumers buy particular goods or services. Either through discounts, instant markdowns, decoy pricing, false sense of urgency where products are marked are ‘limited stock’, low prices, and the ‘Gruen transfer’, where we as customers are ‘surrounded by an intentionally confusing layout and before we know it, we’ve lost track of our original purchasing intentions, and off we end up making impulse buying! As Diderot writes

…But that’s not all, my friend. Lend an ear to the ravages of luxury, the results of a consistent luxury…

I found this video on YouTube. Find out how being “An Enlightened Stupid Marketer is really like.