Companion Effect on Spending

Companion Effect on Spending

Reviewed by Faisal Zaidi

The finding that having a friend present while shopping changes how much a person spends, and that the direction depends on the shopper.

What it is

In four studies reported in 2011, a friend raised spending for agency-oriented consumers, with a weaker boost for communion-oriented ones, and friends mattered most for high self-monitors. It is drawn from work by Didem Kurt, J. Jeffrey Inman and Jennifer Argo (2011).

In effect

In the article on why we spend more with friends, it serves as the central finding of the 2011 Journal of Marketing Research paper.

What it does not say

The effect depends on the shopper and the setting. A friend raised spending for some consumers and had a weaker effect on others, so it does not say that company always increases spending.

Sources

  1. Kurt, D., Inman, J. J., & Argo, J. J. (2011). The Influence of Friends on Consumer Spending: The Role of Agency-Communion Orientation and Self-Monitoring. Journal of Marketing Research, 48(4), 741-754.
  2. Luo, X. (2005). How Does Shopping With Others Influence Impulsive Purchasing? Journal of Consumer Psychology, 15(4), 288-294.