Retail Therapy Retail Therapy Final Report Final Report

Eric NelsonEric NelsonMeghan GabrielsonMeghan Gabrielson

Michelle KnaflaMichelle KnaflaVivian TranVivian Tran

Brittany Wooten Brittany Wooten

Table of Contents Table of Contents

Section I: Key FindingsSection I: Key Findings

Section II: Methodology and BackgroundSection II: Methodology and Background

Section III: FindingsSection III: Findings Value, Attitudes, and OpinionValue, Attitudes, and Opinion Activities to Improve MoodActivities to Improve Mood Effect of Specific PurchasesEffect of Specific Purchases DemographicsDemographics

Section IV: ConclusionsSection IV: Conclusions

Section V: RecommendationsSection V: Recommendations

Key FindingsKey Findings

Gender is related to shopping to improve moodGender is related to shopping to improve mood 17.5% of men said they shopped to improve their mood 17.5% of men said they shopped to improve their mood

while 51.9% of women said they shopped to improve their while 51.9% of women said they shopped to improve their moodmood. .

Contrary to our qualitative findings, students indicated Contrary to our qualitative findings, students indicated that they spend more time participating in alternative that they spend more time participating in alternative activities, besides retail therapy, to improve their moodactivities, besides retail therapy, to improve their mood

Men prefer to shop with others more than women prefer to shop Men prefer to shop with others more than women prefer to shop with otherswith others

Happiness is the most common post purchase emotion Happiness is the most common post purchase emotion associated with retail therapyassociated with retail therapy

Key FindingsKey Findings

18% of women will spend $26-$500/week18% of women will spend $26-$500/week

12% of men spend $26-$500/week12% of men spend $26-$500/week

Women feel best after spending money on Women feel best after spending money on clothing and travelclothing and travel

Men feel best after spending money on special Men feel best after spending money on special interests and entertainment interests and entertainment

Of the people who shop to improve their mood, Of the people who shop to improve their mood, they are more likely to be in relationship or they are more likely to be in relationship or marriedmarried

BackgroundBackground

Questions were based off of qualitative information about

Methodology Methodology

Surveyed 322 people Surveyed 322 people 17% were 65 and older 17% were 65 and older 33% were 45 to 64 years old33% were 45 to 64 years old 50% were 18 to 44 years old50% were 18 to 44 years old

Surveys were conducted from March 25, 2014 to Surveys were conducted from March 25, 2014 to April 7, 2014April 7, 2014

Marketing Research students designed and Marketing Research students designed and analyzed the research survey under the guidance analyzed the research survey under the guidance of Dr. Mary Celsi of Dr. Mary Celsi

LimitationsLimitations

A larger sample size would have made for more A larger sample size would have made for more statistically significant resultsstatistically significant results ““Respondents constitute a small nonrandom sample of Respondents constitute a small nonrandom sample of

relevant consumers and are therefore not statistically relevant consumers and are therefore not statistically representative of the universe from which they have representative of the universe from which they have been drawn.”been drawn.”

Probability based sample would have been preferred Probability based sample would have been preferred to a non-probability convenience sampleto a non-probability convenience sample

Limited to a short data collection period (1 week) Limited to a short data collection period (1 week)

Responses to questions were subjective to Responses to questions were subjective to participants’ interpretation participants’ interpretation

Research ObjectivesResearch Objectives

Validate our findings from Validate our findings from our qualitative project with our qualitative project with statistical significance.statistical significance.

Discover the shopping Discover the shopping tendencies of men and tendencies of men and women and the role women and the role emotions play in those emotions play in those tendencies. tendencies.

We also wanted to explore We also wanted to explore other mechanisms for other mechanisms for dealing with emotions, and dealing with emotions, and compare participation in compare participation in those activities to retail those activities to retail therapytherapy

In addition, we wanted to find out what people buy at a time of extreme emotion…

Clothes?Technology?Leisure?Food?Social activities?

Research on ShoppingResearch on Shopping

52% (64% of women and 40% of men) admit to engaging 52% (64% of women and 40% of men) admit to engaging in “retail therapy (TNS Global)in “retail therapy (TNS Global)

“…“…people who suffer from compulsive shopping or people who suffer from compulsive shopping or spending often spend money when they are experiencing spending often spend money when they are experiencing negative feelings such as disappointment, anger or fear” negative feelings such as disappointment, anger or fear” (Chamberlain)(Chamberlain)

““Feeling sad leads to self-centered thinking -- and this, Feeling sad leads to self-centered thinking -- and this, in turn, can lead to a greater likelihood of dropping extra in turn, can lead to a greater likelihood of dropping extra cash on something to make you feel better” (Childs)cash on something to make you feel better” (Childs)

““If there’s one antidote to emotional distress, it’s human If there’s one antidote to emotional distress, it’s human connection. We’re a species that’s meant to be with connection. We’re a species that’s meant to be with others. Whether that takes place over dinner, at home, others. Whether that takes place over dinner, at home, or at the mall, it’s therapeutic” (Yarrow)or at the mall, it’s therapeutic” (Yarrow)

Values, Attitudes, and Values, Attitudes, and OpinionsOpinions

FindingsFindings

Both men and women share common valuesBoth men and women share common values

Gender is related to feelings about shoppingGender is related to feelings about shopping

Gender is related to shopping to improve moodGender is related to shopping to improve mood 17.5% of men said they shopped to improve their 17.5% of men said they shopped to improve their

mood while 51.9% of women said they shopped mood while 51.9% of women said they shopped to improve their moodto improve their mood. .

The Importance of Values The Importance of Values between Males and Females between Males and Females

Gender did not show a significant difference for most statements in determining which values people rank as being important.

Shopping Habits of Males Shopping Habits of Males and Femalesand Females

• Females generally like to shop more than men and more likely to be considered a ‘shopoholic.’

p<.05

• Both males and females are the same in these categories: • Being thrifty• Feeling good

after resisting the temptation to buy

p=n.s

Is there a difference?Is there a difference?

Only 59% of participants ‘rarely or never’ shop to improve their mood; however 62% of participants ‘rarely or never’ make a purchase to improve their mood

Activities to Improve Activities to Improve MoodMood

Findings Findings Both men and women are more likely to participate in other activities Both men and women are more likely to participate in other activities

besides shopping to improve their mood besides shopping to improve their mood Exercise and Talking with Friends and Family were the top 2 choices (in both Exercise and Talking with Friends and Family were the top 2 choices (in both

first and second choices)first and second choices)

More respondents shopped out of necessity, but 38% sometimes More respondents shopped out of necessity, but 38% sometimes shopped just for fun and 30% sometimes shopped to improve their moodshopped just for fun and 30% sometimes shopped to improve their mood

Men prefer to shop with others more than women prefer to shop with Men prefer to shop with others more than women prefer to shop with othersothers

The mood people shop to improve most is ‘stressed’ (16%)The mood people shop to improve most is ‘stressed’ (16%)

Happiness is the most common post purchase emotion associated with Happiness is the most common post purchase emotion associated with retail therapyretail therapy

Online and department stores are most popular place where respondents Online and department stores are most popular place where respondents shopshop

18% of women will spend $26-$500/week18% of women will spend $26-$500/week

12% of men spend $26-$500/week12% of men spend $26-$500/week

Activities Used to Activities Used to Improve MoodImprove Mood

• 86% of respondents use talking to friends and family as a means to improve their mood.

ContinuedContinued……

36% of respondents listed Exercise as their first or second activity to improve their mood

38% of respondents listed Talking to friends/family as their first or second activity to improve their mood

8% of respondents listed shopping as their first or second activity to improve their mood

Reasons for ShoppingReasons for Shopping

38% of respondents sometimes shop just for fun

30% sometimes shop to improve their mood

68% of respondents often shop out of necessity

How Respondents Prefer to Shop How Respondents Prefer to Shop Based on GenderBased on Gender

• Men and women both like to shop alone

• Men like to shop with others more than women like to shop with others

How Often Respondents Shop How Often Respondents Shop to Improve Moodto Improve Mood

Evenly split:30% Sometimes31% Rarely29% Never

Why do people shop to Why do people shop to improve mood?improve mood?

• Most respondents (30%) stated that none of these moods cause them to shop

• Stress was the

mood that caused the most respondents (16%) to shop

Post Purchase FeelingsPost Purchase Feelings

24% of respondents felt happy after making a purchase to improve their mood

Only 1% felt sad

10% felt relaxed

How long do these How long do these feelings last…feelings last…

Shopping to improve your mood typically has a short term effect- from hours to a day or two

Where do you engage in Where do you engage in Retail Therapy?Retail Therapy?

18% of respondents shop online

17% of respondents shop in Department stores

How much each gender How much each gender spends…spends…

39% of men spent $25 or less per week

31% of women spent $25 or less per week

18% of women will spend $26-$500/week

12% of men spend $26-$500/week

How often males/females How often males/females track spending…track spending…

Men and Women Men and Women generally track generally track their spending their spending once a weekonce a week

The Effect of Specific

The Effect of Specific

Purchases Purchases

FindingsFindings

Clothing/Shoes, Jewelry, Entertainment, Cosmetics, Clothing/Shoes, Jewelry, Entertainment, Cosmetics, Social Activities, Travel typically make people feel Social Activities, Travel typically make people feel betterbetter

Women feel best after spending money on clothing Women feel best after spending money on clothing and traveland travel

Men feel best after spending money on special Men feel best after spending money on special interests and entertainment interests and entertainment

Respondents that reported that they shop to improve their Respondents that reported that they shop to improve their mood usually …mood usually … Love to shop (in general)Love to shop (in general) Feel excited when shoppingFeel excited when shopping Can be impulsiveCan be impulsive

What people buy when What people buy when shopping…shopping…

Significant:Clothing/ShoesJewelryEntertainmentCosmeticsSocial ActivitiesTravel

P<.05

These items generally make people feel better

What makes who feel What makes who feel best…best…

Women feel best Women feel best after spending after spending money on clothing money on clothing and traveland travel

Men feel best after Men feel best after spending money on spending money on special interests special interests and entertainment and entertainment

Feelings when Retail Feelings when Retail ‘Theraping’‘Theraping’

Respondents that reported that they shop to improve their mood usually …

Love to shop (in general)

Feel excited when shopping

Can be impulsive

DemographicsDemographics

FindingsFindings

50% of respondents living in a household with a monthly 50% of respondents living in a household with a monthly income of $2001-2500 are more likely to engage in retail income of $2001-2500 are more likely to engage in retail therapytherapy

Of the people who shop to improve their mood, they are Of the people who shop to improve their mood, they are more likely to be in relationship or marriedmore likely to be in relationship or married

13% of participants have an associates degree13% of participants have an associates degree 50% of this segment shops to improve their mood50% of this segment shops to improve their mood

Males typically work more hours per week Males typically work more hours per week

More males live in a household with a higher monthly More males live in a household with a higher monthly incomeincome

Respondents who have NO monthly household income are Respondents who have NO monthly household income are more likely to participate in retail therapy than those more likely to participate in retail therapy than those respondents who live in a household with a monthly respondents who live in a household with a monthly income of $11,001-$15000income of $11,001-$15000

Who we surveyed…Who we surveyed…

As a class, As a class, we surveyed we surveyed the genders the genders equally.equally.

Relationship Status Effect on Relationship Status Effect on Retail TherapyRetail Therapy

Of the people who shop to improve their mood, they are more likely to be in relationship or married

Education Level and Education Level and Retail TherapyRetail Therapy

50% of those who shop to improve their mood have an Associate’s Degreep=n.s.

13% of participants have an associates degree

Race/Ethnicity Race/Ethnicity

The majority The majority of respondents of respondents were white; were white; 49%49%

45% of 45% of respondents respondents were were Asian/Pacific Asian/Pacific Islander Islander Native or Native or Hispanic Hispanic

Hours work based on Hours work based on gendergender

Males who work, work more hours than women, on a weekly basis

More men are unemployed

Income related to Income related to Retail TherapyRetail Therapy

50% of respondents living in a household with a monthly income of $2001-2500 are more likely to engage in retail therapy

Respondents who have NO monthly household income are more likely to participate in retail therapy than those respondents who live in a household with a monthly income of $11,001-$15000

Gender and Household Gender and Household IncomeIncome

The majority of The majority of females live in a females live in a household with household with monthly income of monthly income of $15,000+ OR $3,500-$15,000+ OR $3,500-$5000$5000 Living at home?Living at home? Living on own?Living on own? Single mother?Single mother? Doesn’t work?Doesn’t work?

The majority of males The majority of males live in a household live in a household with monthly income with monthly income of $9501+ of $9501+ Live at home? Live at home? Make more $?Make more $? Dual income?Dual income?

Respondents in Debt…Respondents in Debt…

Of our respondents, almost equal numbers reported having no debtThe number of men in debt seem to decrease with the increase in the amount of debtThere is no significance (in our research) between gender and level of debt

Conclusions Conclusions

Although our research shows no significance between Although our research shows no significance between gender and debt, men did report to have higher levels of gender and debt, men did report to have higher levels of credit card debt than women credit card debt than women men also reported to men also reported to track their spending almost just as often as womentrack their spending almost just as often as women

Stability and security was reported as a top value by Stability and security was reported as a top value by both genders, while almost half of our respondents both genders, while almost half of our respondents report to have some level of debtreport to have some level of debt

Among those reported, stress was the highest cause for Among those reported, stress was the highest cause for shopping to improve their mood shopping to improve their mood over half of the over half of the respondents reported to working 31+ hours a week.respondents reported to working 31+ hours a week.

While stress was the biggest indicator of retail therapy While stress was the biggest indicator of retail therapy (16%), only 10% felt relaxed after engaging in retail (16%), only 10% felt relaxed after engaging in retail therapytherapy Is retail therapy an effective way of dealing Is retail therapy an effective way of dealing with stress?with stress?

Conclusions Conclusions continued…continued…

More women live in households with a More women live in households with a monthly income of $2001-$2500, which has monthly income of $2001-$2500, which has the highest likelihood of shopping to improve the highest likelihood of shopping to improve a mooda mood

Those with an Associate Degree are most Those with an Associate Degree are most likely be in early their early twenties likely be in early their early twenties the the largest group to engage in shopping as a largest group to engage in shopping as a social activitysocial activity

People don’t shopping and making a purchase People don’t shopping and making a purchase as the same thingas the same thing

Recommendations Recommendations Since a higher number of women live in households Since a higher number of women live in households

with a lower monthly income, convenience stores with a lower monthly income, convenience stores (such as Wal-Mart, Macy’s, JC Penny, Target) offering (such as Wal-Mart, Macy’s, JC Penny, Target) offering constant deals should heavily market to womenconstant deals should heavily market to women

Athletic stores should appeal to the aspect of Athletic stores should appeal to the aspect of working out and the resulting benefits in working out and the resulting benefits in advertisements – more people prefer exercising to advertisements – more people prefer exercising to shopping shopping

Conduct further research on women and monthly Conduct further research on women and monthly household income to examine gap analysis – can household income to examine gap analysis – can help determine marketing strategieshelp determine marketing strategies

Conduct further research on credit card debt and Conduct further research on credit card debt and gender—who makes larger purchases (quality) vs. gender—who makes larger purchases (quality) vs. who buys more (quantity)who buys more (quantity)

Recommendations Recommendations continued…continued…

Both genders reported that talking with friends and Both genders reported that talking with friends and family improved their mood – travel companies, family improved their mood – travel companies, entertainment businesses, and social hangouts (the entertainment businesses, and social hangouts (the top areas where both genders reported spending top areas where both genders reported spending their money) can benefit by offering group deals their money) can benefit by offering group deals such as ‘girls night out’ or ‘buy one get one half off’ such as ‘girls night out’ or ‘buy one get one half off’ meal and drink offers to attract these consumersmeal and drink offers to attract these consumers

Research regarding average financial aid received Research regarding average financial aid received may help identify why those reported zero monthly may help identify why those reported zero monthly income are more likely to shop compared to those income are more likely to shop compared to those making $9,501 - $15,000making $9,501 - $15,000

Because respondents ‘make purchases’ more Because respondents ‘make purchases’ more frequently than they ‘shop,’ retail store advertising frequently than they ‘shop,’ retail store advertising should focus on individual items consumers can should focus on individual items consumers can purchase rather than focusing on their store being purchase rather than focusing on their store being a shopping destinationa shopping destination