What Is Spending Addiction?

In addition to psychologists' theoretical research on "addiction", Nobel Prize-winning American economist Gary S. Becker's "rational addiction" theory was founded from the perspective of economics. The so-called addiction is the consumption dependence caused by personal capital investment. His view is "addictional behavior, even if it is deep, is usually rational in the sense of predictable maximizing behavior that includes stable preferences." As for the rationality mentioned here, individuals always maintain consistency in the process of maximizing their own utility, that is, consumer preferences remain stable and do not change over time. Since then, many economists have perfected Becker's "rational addiction" theory, the present-biased preference theory proposed by O'Donog and Rabin, Bernheim and Wrangell Based on the research results in the fields of neuroscience and psychology, a cued-conditioned cognitive theory was proposed.

Addictive consumption

Right!

In addition to psychologists' theoretical research on "addiction", Nobel Prize-winning American economist Gary S. Becker's "rational addiction" theory was founded from the perspective of economics. The so-called addiction is the consumption dependence caused by personal capital investment. His view is "addictional behavior, even if it is deep, is usually rational in the sense of predictable maximizing behavior that includes stable preferences." As for the rationality mentioned here, individuals always maintain consistency in the process of maximizing their own utility, that is, consumer preferences remain stable and do not change over time. Since then, many economists have perfected Becker's "rational addiction" theory, the present-biased preference theory proposed by O'Donog and Rabin, Bernheim and Wrangell Based on the research results in the fields of neuroscience and psychology, a cued-conditioned cognitive theory was proposed.

Addiction is actually a complex, puzzling, and widespread behavior. In fact, "rational addiction" can not only study consumers themselves, but must analyze the relationship between consumers and brands and products. This is very important and cannot be separated.

Chinese name

Addictive consumption

Definition

Patients become physically dependent on drugs

Part of speech

noun

Classification

Psychological addiction, behavior addiction

Initially, addiction refers to the physiological dependence of patients on drugs, including psychological addiction and behavior addiction. Psychologists analyze that if a person does not shop frantically because he needs certain goods, he may have a pathological mental illness, namely, a shopaholic.

The result of any marketing activity is to achieve two goals: first, to increase the number of customers, and the increase in the number of consumers means an increase in sales; Consumption frequency forms repetitive consumption; the key to repetitive consumption is to make consumers have a dependence on the brand or products, forming "addictive" consumption, and becoming brand loyal customers. ^[1]

The 20:80 rule tells you that 20% of consumers will contribute 80% of profits, and these 20% are exactly one-fifth of the brand's loyal customers. How to make consumers "addictive consumption"? What is the secret of how to turn consumers into loyal customers?

The secret of "addictive consumption"-high added value

People who have been to Haidilao may have experienced this kind of experience. During the rush hour, you have to wait for a while before it is your turn. Hotpot restaurants are everywhere, so if you do nt have a seat, you can change another one. Why waste time here? And those who have experienced this are mostly repeat customers. How does Haidilao make consumers "addictive" to eat here?

In the waiting area of Haidilao, there are four or five waiters who will provide free shoeshine and manicure services for the queued guests. There are also leisure items such as checkers for your pastime, and you can eat fruits that are delivered for free while you play. There is a special play area for children to play. In this way, you do not consume time "for nothing", but enjoy the high added value brought by eating here. Waiting does not become a complaint, but a kind of enjoyment, why not do it?

In addition, the filled drinks can be refilled for free, and the rubber bands given to female customers will free you from worrying about the interference during meals. The mobile phone will also be covered with transparent plastic to prevent the soup from splashing. The meticulous service allows you to enjoy the added value that other stores can't enjoy. No wonder, even if you are in line, you have to come here for a meal.

Haidilao uses the high added value to give customers a sense of "addictive consumption". Although high added value will bring high costs to the enterprise, the "addictive consumption" of customers has won the long-term benefits of merchants. .

The secret of "addictive consumption"-enjoy marketing

Zhang Yimou's "Big Red Lantern Hangs High" made an industry rise rapidly. In the past few years, the foot industry has taken the country by storm, and even the company plans to list overseas. Beauty, body, spa, health and slimming ... The products under the "beauty economy" follow the global integration process "step by step".

Each of these industries has a feature, with membership as its marketing model. This model has driven the industry's "addictive consumption" view. First of all, members enjoy special treatments not available to non-members: project and product benefits, various non-profit activities, more noble treatment, gift feedback ... Once you become a member, you will "enjoy" various benefits.

There are three types of benefits. One is the interest demands of consumers on consumers; the other is the consumer's own interest experience; the third is to establish an invisible "behavior circle." These are also based on consumer insights. You need to know what she (he) needs most. You have to find a reason for her (his) needs and find an exit. "This year 20, next year 18." "Let women's aging come later!" "Enjoy thin and healthy beauty!" These seductive words first make you feel good, and then make you act.

Secondly, even if you are not a member, as long as you have experienced it, your chances of becoming a member will greatly increase. People often feel this way: accepting and enjoying is easy, and giving up is difficult. The pressure on modern people is constantly increasing, and the sub-healthy group is also increasing rapidly. When you walk into the beauty salon, the beautician takes care of it, relaxes and relaxes, and fully mobilizes your "five senses", and your body and mind feel comfortable; if you yourself It belongs to the sub-healthy group. It just happens to feel sore shoulders and necks, and the back may also feel uncomfortable. Then, after professional massage, the uncomfortable part will be more or less improved, or you are not feeling good because of all kinds of stress. An outlet to release stress yourself, at this time, whether physically or psychologically, you will get extra enjoyment. These benefits are truly felt by consumers, and "addiction" is justified.

The secret of "addictive consumption"-a sense of belonging

There are a group of consumers who know all aspects of their favorite brands and think that they have the most say in the products of this brand; their loyalty to the brand is as religious as religious believers; and they are intentional and advocates of other brands Differentiated, and even scoffed at other consumer groups; they set up various rules and regulations for themselves, self-restraint, in order to match and move closer to the value system advocated by the brand; this group of believers is also a missionary, providing The series meets, both physical and spiritual, and spare no effort to introduce it to other consumers. In marketing terms, this is "brand worship."

Every day, 1 billion bottles of cocacola are drunk;

40 million hamburgers were eaten at McDonald's;

820,000 people visit Disney stores;

Starbucks has 15,000 stores worldwide, and is expanding at the rate of 7 new openings per day;

Every second, 1252 cups of Lipton hot black tea are consumed and 119 cans of Lipton ice black tea are consumed;

3600 cups of Nestle coffee are drunk every second;

Marlboro sells 300 billion cigarettes in the world every year, and it can only be filled with 5000 Boeing 707 aircrafts. For every 4 cigarettes smoked in the world, 1 of them is Marlboro.

On social occasions, you do nt have to wait for the other person to hand in a business card to introduce you. You can learn his identity by looking up and down on the brand you wear. Because a brand is a social identity card for people. Each brand has its own unique personality and temperament. Those who belong to this brand's consumer camp must be "like-minded" with the brand. Perhaps from the other person's car, the identity can be analyzed. If he drives a Ferrari, then he must be a activist, like a lively and changeable working environment and new things, have a strong interest in high technology, they like to express opinions and never hide their ambitions. If he is the owner of Mercedes-Benz, he may have a pragmatic style and a heavy family concept. He is the chief executive of a company and the leader of a government agency. People who drive Volvo must be stable, rational and low-key. Of course, brands not only distinguish each consumer group at the psychological level, but also indicate which economic class each group belongs to. "If you drive a Japanese car, you will be embarrassed to say hello to others!" This line in "Big Wrist" is very realistic.

These brands use their distinctive brand culture and refurbished member activities to form a circle of common lifestyles. People in the circle are more likely to find topics and communicate more because of common consumption. This circle may symbolize a certain identity, or it may represent a certain common value; this sense of identity will also promote this circle to grow larger and allow its consumers to form a strong sense of belonging, thus forming "addiction" consumption.

Today's luxury brand has become the most influential religious brand. Many consumers' obsession with luxury brands has reached an unreasonable and irreproducible level. Marilyn Monroe once said that I only "wear" Chanel No. to sleep. A man in Japan liked a Ferrari sports car and even bought more than 40 Ferrari sports cars and parked in the garage!

The key to "addictive consumption" is to gain insight into what the consumer needs, create a reasonable justification for her (he) consumption, and the tangible benefits she (he) can obtain and experience. Create a "behavioral circle" for her (he) with a sense of brand belonging. As long as it wins the hearts of consumers, you have everything.