Why buy anything?
Why do people buy things? Why do they fork out some of their hard–earned cash to exchange it for something else?
This is the sort of question that is framed at such a general level of analysis that any answer to it might seem guaranteed to be unsatisfactory.
The answer might, for example, tend to be more philosophical than the practical. A deep reflection on human nature might follow, with all the inevitable loose ends such reflections entail. Even a more grounded answer might still end up being inconclusive. Think about it: in any number of different situations, any number of different people might have any number of different reasons for buying any number of different things. You could spend a lifetime exploring all the different possibilities.
Nonetheless, sometimes such a question can be given a partial answer that improves understanding. We try to do so here by introducing a key distinction, and by discussing some psychological research based on it.
Two types of reasons for buying
People can buy thing for two fundamental reasons: utilitarian and symbolic. The adjectives are fancy and high–falutin’. So let’s explain each in turn.
First, what is a utilitarian reason for buying something? Well, it’s the one you already know. All goods—which today we typically receive in exchange for money—have utility. And utility is what, in material terms, makes those goods “good”. Utility is what goods do for you, what you get out of them. For example: movies entertain you, motorcars transport you, and medicines make you better. This is so obvious it hardly bears mention. Indeed, utility might seem like the only reason to buy anything at all. What else is there to goods apart from the material benefits they provide?
Yet, the matter is more complex. People buy things for symbolic reasons too.
A big part of being human is living in a world imbued with meaning. Nothing we see merely is what it is: it also has implications. The flowers a wife receives from a husband sure smell nice; but they also signify love. The raise a boss gives a worker improves his financial standing; but it also tells him he is appreciated.
This lesson applies as much to the things we buy as to anything else.
Consider a movie or a motorcar. Certainly, they both provide material satisfactions. But they also carry additional meaning. For example, if you first kissed your romantic partner during a drive–in movie, then a CD of the movie you watched, or the original motorcar you kissed in, would mean something more beyond any utilitarian value they might have.
From scarce goods to social status
Now, let’s suppose I own either (a) some original film reels of the 1931 movie Dracula, featuring spooky Béla Legosi, or (b) a Bugatti Veyron, the most expensive motorcar in the world, currently retailing at over £1,000,000. What implications would this have?
Well, for a start, it would probably distinguish me from you. Original film reels or Bugatti Veyrons are in scarce supply: only a few people can own them. Moreover, to the extent that society says such goods are desirable, owning them would positively distinguish me from you. I would enjoy the prestige and glamour of owning such fine things; you wouldn’t.
But the broadest implication would be this: being able to positively distinguish myself from you, my social status would increase relative to yours. Having more than you, I would stand taller. It is almost as if the properties of my possessions would rub off on me. “I” would become more special and desirable by extension. As the American psychologist William James noted over a century ago, “A man’s Self is the sum total of all that he CAN call his, not only his body and his psychic powers, but his clothes and his house […] his lands, and yacht and bank–account”.
Thus, we may conclude that people buy goods, not just for utilitarian reasons, not just to enjoy them. They also buy them for symbolic reasons, and for one in particular: to positively distinguish themselves from other people, and thereby enhance their social status.
From status–seeking to narcissistic needs
At one level, everyone wants to enhance their social status. It’s as natural for people to aspire upwards as it is for a plant to grow skywards. Hence, everyone has the potential to buy goods for symbolic as well as utilitarian reasons. Certainly, that iPad 2 features many cool apps; but owning one makes you look cool too.
Yet people differ. Some are more concerned with social status, some less. By extension, might some people also be more concerned buying goods for symbolic reasons than others? Seven Stones’ consultant psychologist, Dr. Aiden P. Gregg, recently conducted research into this very question.
Dr. Gregg began by measuring people’s narcissism. In common parlance, narcissism is the quality of being in love with oneself. The scientific definition expands upon the idea. In particular, narcissists like how they look; tend to show off; see themselves as superior; treasure independence; like exercising authority; often manipulate others; and have a stronger sense of entitlement.
Importantly, narcissism is a matter of degree. You can be completely narcissistic, completely un–narcissistic, and everything in between. For the sake of brevity, we will use to the word “narcissist” to describe someone relatively high on this personality trait.
Prior research has shown that narcissists are more concerned with agency—achieving important goals and getting ahead in life—than they are with communion—having fulfilling relationships and getting along with others. In other words, narcissists value status over belonging. Accordingly, it seems plausible that narcissists might be especially likely to buy consumer products to promote their status by positively distinguishing themselves from others.
Dr. Gregg and colleagues began their research by having a sample participants list some of their prized personal possessions. Next, they had them guess how many other people also owned them. As predicted, narcissists guessed that fewer other people did. This might have been true; or it might have been just their perception. Either way, the impression that fewer people owned their prized perceptions would have helped narcissists to positively distinguish themselves from others in their own minds.
But what about products narcissists don’t yet own? Dr. Gregg and colleagues also found that narcissists, unlike non–narcissists, displayed an interest in acquiring consumer goods that help to distinguish them from other people.
In one study, for example, narcissists showed greater interest in a fictitious “Just for You” brand of dress shirts, which they could customise to their taste. In another study, participants were given the option of choosing between two iPod accessories of equal value: a generic gift coupon for iTunes, or a leather case with their letters engraved. Narcissists were more likely to choose the latter option. In a final pair of studies, all participants were shown the same watch, but some were informed it was part of an exclusive limited edition, whereas others were informed that plenty of watches were available. Whether buying for themselves or for someone else, narcissists indicated they were willing to pay more for the limited edition watch; non–narcissists, in contrast, were not.
Thus, the empirical evidence bears out initial suspicions. Narcissists—the sorts of people who are especially concerned with status—are more interested in products that permit them to positively distinguish themselves from others.
As well providing theoretical insight, these research findings have a practical benefit. They pin down a key personality trait that sellers could use to predict who would be inclined to buy more distinctive products.
From narcissistic needs to favoured pharmaceuticals
Earlier, we gave examples of scarce goods from the world of movies and motorcars. Now it is the turn of medicine.
More specifically, the idea that narcissism increases interest in distinctive products has at least two applications in pharmaceutical market research. First, it can be used to help predict the relative likelihood of using branded versus generic drugs. Second, it can be used to help predict the relative likelihood of adopting new drugs versus sticking with established ones.
Much marketing research is devoted to measuring brand equity and much advertising to promoting it. However, consider any brand. One of its primary functions is simply to distinguish a product. A brand name, first and foremost, serves to convey that a product is different from its generic version or from competing brands. Indeed, the very presence of brand implies that a product is positively distinctive compared to its generic version—why else would it be specially named? Hence, status–conscious narcissists should particularly tend to prefer branded drugs over generic drugs. For them, a brand is not merely a cue to product quality, a sign that it will satisfactorily fulfil its utilitarian function; it is also a cue to product distinctiveness, a sign that it will symbolically enhance their social status. It follows that more narcissistic physicians should tend to prescribe, and more narcissistic consumers to take, branded as opposed to generic drugs. Furthermore, narcissists should be more sensitive to differences in equity between rival brands of drugs. Again, narcissists concern is not only with what a drug can do, but also with what it means. Using a drug with a better brand distinguishes them positively from others.
Now consider a new drug that comes on the market. Most likely, it imparts some utilitarian benefit. It probably beats the competition either in efficacy, safety, or tolerability. However, a new drug also confers a symbolic benefit. It is distinctive simply in virtue of being new. Hence, someone who prescribes or takes a new drug can distinguish themselves from the crowd. Accordingly, narcissists should be especially liable to embrace a new drug, be they physicians or consumers.
Of course, other considerations apply. For example, all else equal a new drug will be regarded as a riskier bet than a tried–and–trusted one. That too would influence the likelihood of adopting new drugs earlier. But narcissists are also known for courting risk, for being open to new possibilities. This is an additional reason why narcissists would be typical early–adopters.
To close, a methodological question: how could one determine whether a physician is higher or lower in narcissism, as means of better predicting who would prefer branded drugs and who would adopt new drugs earlier? Well, there are number of ways. First, there are standard and well–validated questions one can ask in over the phone interviews. If these are deemed too direct, there are other options. For example, an interviewer could casually enquire about an interviewee’s tastes in food, entertainment, and travel. If these are sophisticated and exclusive, then narcissism might be indicated. Third, there are often subtle signs an interviewer can pick up. A meticulous appearance, and designer clothes, would be one tell–tale sign of a narcissist.
Summary
People buy things not only for utilitarian reasons, but also for symbolic ones. That is, people buy products, not only for the material benefits they provide, but also because they help to distinguish them from other people, something that ultimately enhances social status. Research shows that narcissists are particularly likely to buy products for just this reason. Armed with this insight, market researchers can better predict who will buy what. For example, they can plausibly infer that narcissistic consumers would tend to prefer branded drugs, and that narcissistic physicians would tend to be early–adopters of new drugs.
References
Campbell, W. K. & Foster, J. D. (2007). The narcissistic self: Background, an extended agency model, and ongoing controversies. In C. Sedikides & S. Spencer (Eds.), Frontiers in social psychology: The self (pp. 115–138). Philadelphia, PA: Psychology Press.
Campbell, W. K., Goodie, A. S., & Foster, J. D. (2004). Narcissism, confidence, and risk attitude. Journal of Behavioral Decision Making, 17, 297–311.
Lee, S., Gregg, A. P., & Park, S. (under review). The person in the purchase: Narcissistic consumers prefer products that distinguish them. Journal of Consumer Psychology.
Sedikides, C., Gregg, A. P., Cisek, S., & Hart, C. M. (2007). The I that buys: Narcissists as consumers. Journal of Consumer Psychology, 17, 254–257.
