��������

When you shop, do you favor quantity or quality? Your approach to spending has big implications for your overall financial health, according to a new study forthcoming in the Journal of Consumer Research.

Rodrigo Dias

It finds that consumers generally fall into two camps: those who tend to invest in fewer higher-quality items and those who buy a larger amount of cheaper goods. Your disposition toward quality or quantity can predict a host of financial outcomes, including your debt and savings levels.

“Your preference for quality or quantity significantly influences not just what you buy, but how well you manage your finances overall,” said Rodrigo Dias, lead author of the study and assistant professor of marketing at the Leeds School of Business.

Encompassing more than 24,000 participants and 32 studies, the research found that shoppers who prioritize quantity tend to spend more, borrow more and accumulate more debt than those who favor quality.

The spending spectrum

Consumers who lean toward quantity often find themselves spending more and saving less, Dias said.

One reason for that is expense-tracking. “The more you track your spending, the less you spend,” Dias said. “Higher-quantity people are always buying and not as motivated to keep track of their purchases. And if they don’t track, they end up spending more.”

The research indicates that those who consistently prefer quality across their purchases tend to manage their finances better than their quantity-focused consumers.

These consumers spend less, in part, because they tend to consider alternative ways of spending their money along with potential benefits and drawbacks—what’s called “opportunity cost”—more so than quantity-focused shoppers.

Quantity drives debt

Consumers who prioritize quantity take on more debt to support their higher spending, Dias noted.

The researchers also found those who prefer quantity showed a concerning pattern of recurring debt accumulation over time. “A worrisome finding is that quantity-focused consumers allocate less money toward paying off their debt,” Dias said. “As a result, over time, they are saddled with greater debt even in categories for which initial borrowing was the same.”

An example of this pattern is the association with student loan debt. By analyzing a dataset with a representative sample of over 10,000 U.S. consumers, the researchers found that those who preferred quantity owed about $43,000 in their student loans, while those who preferred quality owed about $38,000. This finding held even after the researchers accounted for a host of factors that may affect consumers’ debt levels, such as income, age, education and marital status.

Seeking quality, choosing quantity

Many consumers struggle with a self-image that doesn’t align with their spending habits.

"People often think, 'I only buy quality clothes,' yet they may purchase cheaper household items without realizing it. This discrepancy between how they rationalize their choices and what they actually buy is striking," Dias said.

The researchers found that people generally do not exhibit a mix of the two shopping habits. Dias pointed out a fascinating consistency in the study. "If you look at the data, it becomes clear: Quality people tend to prefer quality across the board, and quantity people do the same.” Over time, consumers don’t tend to change their preferences, he added.

And while many consumers aspire to favor quality, some openly admit to preferring quantity. "�������� 25% to 30% of people tend to prefer quantity over quality," he said.

The research also uncovered some troubling personality traits linked to a preference for quantity. "We found that compulsive buying—shopping to cope with negative feelings—is associated with a preference for quantity over quality. Materialistic consumers also prioritize quantity, equating possessions with their self-worth."

In addition, the research established a significant connection between quality-quantity preferences and actual spending behavior. Those who preferred quantity spent an average of $89 in a shopping simulation, compared with $79 for those who favored quality. “This shows that preference directly translates into spending. The more you lean towards quantity, the more you’re likely to overspend,” Rodrigo noted.

Understanding your spending habits

Since the study finds that consumers generally don’t change when it comes to spending patterns, it’s important to be self-aware since “understanding your own spending habits can lead to smarter financial choices," Dias said.

The researchers developed a "quality-quantity trade-offs" scale, which can help people assess their spending tendencies.

Based on the study’s findings, here are some tips for consumers to take control of their finances:

• Reflect on your purchases. Do you typically buy fewer, higher-quality items, or do you gravitate toward deals and bulk purchases? Recognizing your natural inclination can help you make more conscious spending choices. “In hindsight, a lot of people realize that they're just buying stuff and not getting a lot of joy out of it,” Dias said.
• Understand your emotional triggers. Recognize how emotional satisfaction from purchases can lead to impulsive buying and financial strain.
• Consider the long-term costs. While buying in bulk or opting for cheaper alternatives might seem appealing in the moment, it could lead to greater spending in the long run. Higher-quality items often last longer, potentially saving you money over time.
• Shop savvy. Be critical of promotions. If you prefer quality, don’t let quantity discounts sway your decisions unless it aligns with your values. “Recognizing these emotional connections can help you make smarter choices,” Dias said.