A new spending index today reveals that Brits take considerably longer per pound buying non-essential lifestyle items than major purchases such as a new car or white goods.
A new spending index today reveals that Brits take considerably longer per pound buying non-essential lifestyle items than major purchases such as a new car or white goods.
The "HPI Cash Consideration Index" finds that the average consumer will spend over eight days deciding on a holiday destination, double the time spent choosing a car (4.2 days). A further four out of 10 (40%) British shoppers openly admit to spending more time searching for a perfect outfit than researching a car purchase.
The index pinpoints the exact time Brits take to make a range of purchases - from a family holiday or a car, to a pair of shoes. Using figures from vehicle check experts HPI, leading retail psychologist Dr Tim Denison tracked the time spent by over 1000 shoppers on a range of purchasing decisions. Weighing this against the cost of individual items he has created the HPI Cash Consideration Index which outlines British shoppers’ spending priorities.
The HPI Cash Consideration Index
| Item | Average time spent on decision process | Average money spent on item (Ł) | Time per Ł1 |
|---|---|---|---|
| Handbag | 1.6 | 43.32 | 53 minutes and 12 seconds per Ł1 |
| Shoes | 1.6 | 63.33 | 36 minutes and 24 seconds per Ł1 |
| Computer | 7.7 | 750.4 | 14 minutes and 48 seconds per Ł1 |
| New outfit | 2.2 | 255.48 | 11 minutes and 54 seconds per Ł1 |
| Fridge | 2.3 | 319.4 | 10 minutes and 24 seconds per Ł1 |
| Holiday | 8.4 | 1167.5 | 10 minutes and 24 seconds per Ł1 |
| TV | 3.6 | 632.4 | 8 minutes and 12 seconds per Ł1 |
| Car | 4.2 | 9,490 | 36 seconds per Ł1 |
The index reveals an "inversely proportional purchase pattern", with handbags topping the HPI Cash Consideration Index as the average shopper spends 53 minutes and 12 seconds per pound making their decision. This contrasts with a mere 36 seconds per pound invested in the average car purchase.
Dr Tim Denison has highlighted some key consumer characteristics that drive this inversely proportional purchase pattern:
High v low involvement goods – Glossy magazines and lifestyle TV shows fuel the idea that what we wear says a lot about us. Clothes buying is therefore an involved decision, over which we regularly spend time. This builds a sense of familiarity with the purchase process and approximately a third (32%) of respondents said they feel confident in their fashion know-how. In comparison only 13% of consumers feel equipped to make confident decisions when buying a car explained by the occasional nature of such purchases but also less emotional involvement with the product itself.
Online v Vendor – Consumers spend the greatest amount of time deliberating over purchases such as holidays (8.4 days average) and computers (7.7 days average). It is no coincidence that these items are highly researchable on the internet and that people are prepared to invest time accordingly in the comfort and convenience of their homes and workplaces. The web empowers consumers with both greater opportunities to make accurate product comparisons and with the ability to search independently.
Alan Bishop of HPI further comments on the research: "The study demonstrates a lack of consumer understanding about the risks of buying without thorough research - failure to invest sufficient time in researching important purchase decisions, such as buying a used car, has left one in two consumers feeling ripped off or overcharged. A wise buy is not just about finding a good deal, it's about taking the time and doing the research, finding the right product to suit our individual needs and lifestyles. Buying on impulse can end up costing far more in the long run if a product fails to meet consumer's expectations. A little bit of care goes a long way.”
HPI has teamed up with retail expert Dr Tim Denison to provide consumers with some top tips for making an informed purchase choice and to avoid disappointment.
- Save up first so that you truly value what you spend
- Research on line, in the shops and amongst your peers
- Always ask a friend’s opinion – better still take one shopping with you. This will help you further distinguish need v want.
- Don’t think just because something has money off it is affordable
- Remember that you will have to live with your high ticket purchases for years – apply the same rigour in your justification as you may in buying your clothes.
HPI provides the most comprehensive check on a vehicle’s status and informs consumers if the vehicle they wish to purchase has been stolen, written off, clocked or has outstanding finance. For more information on the service visit www.hpi.co.uk.
-ends-
RAC Press office contact:
Sonia Clarke or Amanda Glover at Lexis PR on 0207 908 6570 or 0207 908 6462
Jon Day at RAC Press Office on 01603 209287
Notes to editors:
HPI commissioned ICM to conduct research amongst 1033 adults in the UK between 13–15 October 2006.
About HPI
HPI is part of Norwich Union, the UK's largest insurer. Norwich Union is part of Aviva, the world's fifth largest insurance group.
"HPI" and the HPI logo are registered trademarks of HPI Limited.