It doesn’t matter how often you’ve heard that business and emotions don’t mix. In truth, they do. Emotions are a crucial part of each business transaction for the excellent reason that you can’t buy without creating a trust bond. In the Chinese culture, for instance, there can be no business discussion with new partners or clients without first establishing a personal relationship between parties. For many who are not used to working with China-based companies, the approach appears like a waste of time, but ultimately there is a real need for buyers and sellers to understand how emotions affect a transaction. Indeed, the correlation between emotional engagement and finances is often used as a joke – don’t we all know the story of a shopaholic who responds to crisis with a trip down the shopping mall – but the better you understand the principles of emotional purchase, the better you can control financially unhealthy urges – or encourage them if you’re a seller.
The ‘OMG I need this so much right now’ shopping: All emotions, no financial sense
According to Ryan Howell, PhD at Psychology Today, emotional and compulsive shoppers shop in response to negative emotions, whether it’s stress, anger, low self-esteem or even anxiety. Ina society where the consumerist message conveys that shopping equals happiness, it’s easy for individuals to internalize the message in their everyday lives. As a result, feelings such as instant gratification, escapism and social competition dictate a lot of purchases. But more importantly, they can also create significant debts and financial stress, which can lead to further emotional shopping. The good news is that you can get a handle on emotional spending through budget strategy and digital detox.
Surprisingly, cars are the least emotionally involved purchase
We love cars. In fact, for a lot of people, the car is an extension of your personality. As a result, it’s natural to think that buying a car is an emotional decision. In reality, most buyers narrow down their research through finance-based criteria from price with Bob Ford inventory priced to sell to age – we all know that old vehicles have high maintenance needs. From the selection that matches their requirements, the last choice is often an emotional one, namely defining which car they prefer out of a carefully selected list of vehicles.
You buy a house with all your heart and all your brain
Buying a house is both a financial and emotional investment. It’s not only, for most homeowners, the place that ties them up to a mortgage, but it’s also the place where they can watch their family grow. In other words, if you’re selling your house, you need to understand how to address financial and emotional arguments best. For instance, a lot of buyers can pass on an otherwise fantastic property because they dislike the seller’s attitude. Similarly, bringing too many personal decor touches in display can discourage buyers to imagine what the house would be like if it were theirs. The secret is to manage the balance between a well-maintained property and a cozy but not overwhelming home feeling.
In short, shopping is a rollercoaster of emotions. From stress relief to feeling at home, your emotions guide your decisions. But don’t let them get hold of your credit card!
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