British shoppers are becoming addicted to the thrill of buying on the cheap. No longer embarrassed to bag a bargain they are spending more than ever on low cost items and are proud of their purchases.
- But could buying frenzy be false economy?
British shoppers are becoming addicted to the thrill of buying on the cheap. No longer embarrassed to bag a bargain they are spending more than ever on low cost items and are proud of their purchases.
But the increasing inability to resist a bargain could lead to a surge in our overall spending as people adopt a “little and very often” shopping policy.
The study by Norwich Union Insurance* found that this so-called "price tag pride" has had a dramatic impact on our spending habits:
- Nearly one in five (17%) Brits often spend more than planned because they just can’t resist a bargain
- Just under a quarter (24%) justify spending on bargain buys because of their low price tag
- Over half (55%) are proud to say they’ve nabbed a bargain, while over a quarter (27%) get such a buzz from it they can’t wait for their next "bargain hit".
- Price-tag Proud, 20–40 year olds
Unlike their parents, the new generation of British shopper loves a good bargain and is not afraid to say so. In fact, young adults’ love for all things low-cost is fast becoming a national obsession, with people proudly telling friends and family just how cheap their latest purchase was and buying more items, more often than ever. - Cash Flashers, 40–70 year olds
People in their forties and fifties – the baby-boomers – were the first real consumer culture generation and are more materialistic and flash with their cash than their parents. While they like to bag a good bargain, they certainly won’t boast about it. Instead they tend to use the money saved to treat themselves to more expensive items to enhance their status. - Shamed to Spend, 70 year olds +
Today’s frugal pensioners were born during and just after wartime austerity and grew up in a world where spending money was a luxury. Items were repaired and kept as opposed to today’s throwaway consumer culture. As a result, pensioners are still reluctant to spend their cash - even on bargains - and just 2% would consider treating themselves to items they don’t really need.
But could the trend backfire on the price-tag proud? Instead of saving money could bargain hunters actually be running the risk of getting into serious debt?
“Norwich Union’s research has shown that people get a real buzz from bagging a bargain and that it can get quite addictive,” says Cesarina Holm-Kander.
“What we don’t realise is that while we’re spending less on single items, we’re spending much more frequently – what used to be an occasional shopping trip has become a weekly activity for many British women. This could explain why, despite the popularity of bargain shopping, more and more Brits are getting themselves into serious debt.”
Norwich Union’s research also found that:
- Women are more likely than men to admit to being "price tag proud" and enjoy letting people know how much their bargains cost them
- However, because women can’t resist a bargain, compared to men, they are particularly prone to spending more overall than they intend too
- But both men and women are most likely to splurge on food and groceries.
It also appears that bargain hunters are losing count of how much they’re spending. Nearly two-thirds (62%) of Brits admit they have no idea what their possessions are worth in total.
Dominic Clayden, director of technical claims at Norwich Union, comments: “Our research shows a change in buying behaviour, with young adults especially happy to splash out more regularly on bargains. But can all those small price tags lead to big bills at the end of each month?
“Worryingly many people also appear to be losing track of how much their belongings are actually worth. So we would remind people, when renewing their home insurance, to take into account those extra items they have bought themselves to ensure they are all sufficiently insured.”
-ends-
Case studies available upon request
Press office contacts:
Joanna Pritchard at Lexis PR
Telephone: 020 7908 6440
E-mail: jpritchard@lexispr.com
Sophie Lam at Lexis PR
Telephone: 020 7908 6482
E-mail: slam@lexispr.com
Rebecca Holmes, Norwich Union Press Office
Telephone: 01603 354 346/07800 690731
E-mail: rebecca.l.holmes@norwich-union.co.uk
Notes to editors:
*ICM interviewed a random sample of 1000 adults aged 18+ on-line across the UK between December 1 and December 3 2006.
ICM is a member of the British Polling Council and abide by its rules. Further information at www.icmresearch.co.uk.
About Norwich Union
Norwich Union is the UK’s largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media