MONEY consumer psychology

5 Reasons Why You Give Such Awful Presents

cupcake in a ring box
Tooga—Getty Images

If it's the thought that counts when it comes to giving terrific presents, then what exactly are horrible gift-givers thinking?

We’ve all suffered through that awkward silence at least once, the one that comes right after someone opens the holiday gift that you selected—and that’s somehow not quite right. In fact, it’s a horrible gift. It’s inappropriate, thoughtless, silly, or otherwise ill-considered.

Depending on the manners of the recipient, the reaction to the presentation of such a gift might be a forced squeal of delight, an overly broad, stiff smile, or a quick, flat “thank you” tinged with a touch of confusion. Or something far worse. But there’s no getting around the fact that, as far as presents go, this one has been deemed pretty awful.

How could this have happened, you wonder? You’re usually such a thoughtful gift-giver. It’s not that you don’t like the recipient, nor that you were trying to make a statement or cheap out—among the disturbing psychological motivations for presents that wind up on the Worst Gifts Ever Awards list that I’ve chronicled in previous years. Still, even the most seasoned, well-intentioned shoppers make mistakes. After talking with scores of recipients about why some gifts are awful, a handful of explanations surfaced repeatedly.

So that you can avoid developing a reputation as a bad gift-giver, here are the top five reasons why regrettable presents are purchased.

1. The “This Will Make a Nice Gift” Gift

Leslie purchased three elegant carving sets (the kind you use to carve a roast or turkey) at an online auction because she thought they “would make nice gifts” for someone. “They were like 80% off, and I guess I wasn’t thinking about who exactly they would make nice gifts for because everyone I gave them to seemed confused,” she recalled. “In retrospect they were right. I wasn’t thinking about the person I’d be giving them to, just that they were beautiful—and that I could give an expensive sort of gift for not much money.”

If you find yourself considering a purchase but you don’t have a recipient in mind, think about Leslie. Then think again and reconsider making the purchase. The best gifts are purchased with a specific recipient in mind. Very rarely does it work out that someone buys a gift and later finds the perfect person to give it to.

2. The “How Old is He Again?” Gift

Many people see relatives only during the holidays, or even less frequently than that. It’s easy to think of people as who they were the last time we saw them, rather than realize who they are right now. Which is basically Maryanne’s explanation for why she gave her 14-year-old step-niece sparkly barrettes and a butterfly wand for Christmas last year. “I was shocked when I saw her, she was so grown-up all of a sudden!” Maryanne said. “Needless to say, she hated the little girl gifts.”

This kind of mistake can be made not just because of age-related snafus, but also by givers failing to notice changes in life stages, looks, interests, and hobbies. A man named Joe told me that he finds it odd—and a bit annoying—that he still gets a tie every year from one of his sons even though he’s been retired for years: “I’ve got a closet full of ties and it no place to wear them.”

3. The “All Hat, No Cattle” Gift (and Vice Versa)

Wrapping makes a statement. For some reason, Janine decided to use an old Tiffany box to hold an ornament she’d purchased for her sister. “You should have seen her face, actually both of them,” Janine remembered. “The one she had when she saw the Tiffany box—all excited. And then the one she had when she opened the box—not good.”

I think the sister would have liked the ornament a lot more if the blue box presentation didn’t make her think it was going to be something else. On the other hand, Ray slipped a diamond ring in the bowl of a mixer, wrapped the whole thing up and gave it to his wife for Christmas. “She was so mad about that mixer, she’d told me not to get her any more cooking equipment, and then she was embarrassed about getting mad when she saw the ring. I don’t know what I was thinking,” Ray said. “It really wasn’t the joyful opening I’d hoped it would be.”

The solution isn’t to skip the wrapping and creativity. It’s to be aware of managing expectations to maximize the pleasure of the gift. And remember surprises aren’t necessarily good.

4. The “Procrastinator’s Special” Gift

Procrastinators usually do so for one of two reasons: They’re mulling among two or more options and it’s taking a while; or they are really unclear on what to do, where to go and how to pick so they drag their feet, knowing that if they make a mistake they can blame it on time constraints. Procrastinators can make inspired gift choices — but the odds are against them.

Pamela is married to a procrastinator. “My husband got me really fabulous shoes, but in the wrong size with a note saying that I should exchange them for the right size,” she said. “When I tried to exchange them were sold out, which was also the case when he bought them — probably on Christmas Eve.”

5. The “The Impulsively Purchased Extravagance” Gift

When do we purchase impulsively? When we’re wowed. In today’s marketplace, dominated as it is with dramatic Black Friday discounts and big markdowns throughout the holidays, that “wow” is more likely to come after we see a special price rather than a special product. Shoppers can easily get blindsided by a tempting price, not to mention the idea that they’ll be able to give a seemingly extravagant gift that’s still within their budget.

That’s the gist of how Megan ended up giving her mother a dry-clean-only cashmere robe for Christmas last year. “It was elegant, and even though it was almost twice as expensive as the plush robe she’d asked for, I was thrilled to give it to her. Until I saw her face,” said Megan. “She had this ‘Did I raise a crazy daughter?’ look on her face, and in that instant I realized what a mistake I’d made. Unfortunately, I got it at an outlet mall. I couldn’t return it so it lives on to remind me to stick with the list.”

Which is good advice for everyone.

Kit Yarrow, Ph.D., is a consumer psychologist who is obsessed with all things related to how, when and why we shop and buy. She conducts research through her professorship at Golden Gate University and shares her findings in speeches, consulting work, and her books, Decoding the New Consumer Mind and Gen BuY.

MONEY consumer psychology

Stop Making These 5 Shopping Mistakes And You Won’t Overspend!

Jennifer Martinez filled a shopping cart with toys at the Toys R Us store on County Line Road in Arapahoe County Thursday night, November 28, 2013.
Karl Gehring—The Denver Post via Getty Images

Shoppers feel smart when they've snagged a great bargain. But during the frenzy of sales on Black Friday and the holidays, it's common for bargain hunters to make dumb mistakes that wind up costing them big time.

The biggest shopping season of the year is upon us. We shop more, and when we do, we’re overwhelmed with products and price promotions in today’s hyper-competitive retail environment. In effect, everyone is shopping with at least a touch of “bargain brain.” That’s the term I use to describe the confusing, pressure-filled state of mind of the average shopper during the holiday period. And it’s this mentality, combined with some classic sales strategies practiced by retailers, that makes it more likely for shoppers to wind up making some regretful shopping decisions, including but not limited to choosing the wrong gift or buying at the wrong price.

As a consumer psychologist, I interview lots of shoppers, and this year, with few exceptions, they said that if it wasn’t on sale, they weren’t buying it. We’ve come to expect discounting, and won’t buy until they appear. Promotional sales are ubiquitous, and shoppers understand that the “regular” price of many products has been inflated to leave room for markdowns. Therefore, as you’ve likely already seen, it’s a deal-a-minute holiday out there.

We’re flooded with news of “unmissable,” “unbelievable,” and “never before” rapid-fire sales from all directions: advertising, catalogs, emails, texts, through social media feeds and all other sources of digital communication. With each bit of information coming our way, we’re constantly pushed to reevaluate what to buy, and when to buy it. Considering all of the decisions that must be made, it’s no wonder we make some less-than-great ones during the holidays. And so bargain-brained errors are common around this time of year, especially those that fall into these five categories:

Fear of Missing Out
Because sales are short-lived and hot holiday gifts are often available in limited supply, shoppers are well aware that if they don’t bite, the item could soon return to full price or disappear entirely. That’s why sales cause FOMO (fear of missing out) fever, and it’s this mix of fear and excitement that can muddle thinking. Add in the emotional pressure and competitive fuel of crowds and it’s understandable why so many end up making regrettable purchasing decisions at this time of year.

To keep your cool, it helps to understand that the vast majority of holiday sales are carefully planned long in advance of the season. With few exceptions, retailers have ample supplies of what they expect to be top sellers. Many of the seemingly great doorbuster deals that appear in limited supply on Black Friday are not only cheaply priced but cheap quality as well. So overall, in all likelihood you’ll be able to find the best gifts in stock somewhere during the course of the holidays, and you shouldn’t sweat missing out on a few chintzy Black Friday deals.

Actually, one approach to the pressure of the season is simple resignation: Enter the holiday shopping season full assuming that at least once and perhaps multiple times you’ll miss the lowest price or see something later that would have made a better gift. Frankly, it’s not a bad strategy. It preserves time and saves energy that might be better used for enjoying the holidays. If you’re not scared about the possibility of paying a little more than is necessary, or of purchasing some gifts that are decent but not necessarily great, then you never experience FOMO—nor do you make the bad decisions spurred on by this common emotion.

Valuing Price Over Value
Even in the face of a jaw-dropping bargain, it’s essential to stay focused on how much you really want the item rather than on the discount. During frenzied moments, people can easily lose focus on what they’re buying and end up with gifts in search of a recipient rather than a thoughtfully chosen gift for someone on your list. Jenny, a busy working mother, for example, told me she has a “gift drawer” stuffed with cashmere scarfs. “I got them online during a flash sale a couple of years ago and I’m still working though that stash,” she recalled. “It’s almost embarrassing because I honestly can’t remember who I’ve given one to in previous years.”

Also keep in mind that when we’re emotionally charged while shopping, we’re also more prone to impulse purchases. Whether online or in store, tempting add-on items (especially those stocking stuffers and knickknacks that can hammer your holiday budget) will be especially prevalent this year. The solution is to breathe deeply and take an extra moment to consider what you’re really buying.

Getting Confused by Deals
Another problem with the swift and steady stream of promotions we’ll be wading through this year is managing the complexity of offerings. Neil, an engineer by profession who is used to tackling complexity, says that even he’s often confused by the way sales, coupons, and promotions piled on top of each other. “I have a coupon for $50 off if I spend $200 so that’s a 25% discount, but what if I find something for $150 for my wife?” he said. “Then I’d probably end up spending more to get the discount which blows the discount. Or I can wait for Black Friday but maybe what I want won’t be included in the sale.” Stay calm, use your phone’s calculator, and never ever spend in order to save.

Too Much Bargain Hunting
In my research I’ve found that consumers who are heavily bargain-focused actually spend more total money shopping than others. Why? They spend more time shopping, which means they see and therefore often want and buy more merchandise. Also, because their focus is on how much they’re saving, they more easily lose track of what they’re spending.

Speaking of which, a classic silly bargain-brain move is to mentally consider the money you’ve “saved” off list prices as “earned” money—and this found money often gets spent pretty easily. Consider what Angie said in a recent interview: “I got these pants I needed on sale, so I treated myself to the matching top. It was full price, but that’s okay because I saved all that money getting the pants on sale.” Get the irony? In no universe is spending money actually saving money. But it can feel like that. Beyond that, remember that in our discount-crazed world, original prices are usually wildly inflated, so sales “save” far less money than you think.

Ignoring the Fine Print
Yet another potential pitfall to bargains is that they often come with strings attached. For gifts, the most problematic of these issues is a no-return policy, a short return window, or returns that only qualify for merchandise credit. Take is from Carly, an avid online shopper, that unless you’ve seen and considered the product before, losing the ability to return merchandise can be costly. “I spent half my Christmas budget on clearance blow-out merchandise” last year, she said. “While a few of the items were perfect and I got them for a steal, at least half were ungiftable and totally wrong. I’m stuck with them so it’s not really a bargain in the end.”

If you find yourself succumbing to “bargain brain,” do your best to remain mentally calm. Try to focus on the value and cost of a product rather than simply the reduced price of a tempting sale “opportunity.” Above all, stay loyal to your gift list and budget.

MORE: How Do I Set a Budget I Can Stick To?

Hey Impulse Spenders, Here’s a Solution to Your Bad Habit

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Kit Yarrow, Ph.D., is a consumer psychologist who is obsessed with all things related to how, when and why we shop and buy. She conducts research through her professorship at Golden Gate University and shares her findings in speeches, consulting work, and her books, Decoding the New Consumer Mind and Gen BuY.

Read next: 7 Black Friday Haggling Secrets You Need to Know

 

MONEY consumer psychology

12 Ways to Stop Wasting Money and Take Control of Your Stuff

Digging in overflowing closet
Steve Cole Images—Getty Images/Vetta

If you're swimming in stuff, not to mention debt, check out this list of a dozen tips to stop the madness and streamline your lifestyle.

In my work as a consumer psychologist and author, I’ve read countless studies about consumer behavior, and I’ve conducted plenty of research on my own, interviewing hundreds of shoppers about how, when, and why they shop. Here’s what I’ve learned about how to avoid piling up too much stuff and how to stop making unnecessary, excessive, and ultimately unsatisfying purchases.

Do an inventory check. Jenna Suhl, who has worked as a wardrobe stylist in San Francisco for more than a decade, told me, “It’s not uncommon for people to buy new things because they have so much they can’t see what they already have.” Suhl recommends weeding out what’s worn, ill-fitting, unmatchable, or a style that no longer suits. That’s not only true for clothing and accessories, but also tools, household products, and knickknacks. Another woman once mentioned to me that she actually bought the exact same serving platter twice, forgetting that she already owned it. “At least I have consistent taste,” she laughed, “but clearly I have too much stuff.”

Buy good quality—and use it. Perhaps counterintuitively, I’ve found that it’s common for people to almost never use the things they love the most—a favorite pair or jeans, a vintage Mustang—and that give them the most pleasure. Why? Often, it’s because they want to protect the item in question, because they like it so much and don’t want it to be ruined. Instead of using their favorites regularly, they buy cheaper things—sometimes knockoff imitations—for “everyday” use. The unfortunate result is less satisfaction, and that lack of satisfaction often leads to more buying in the misguided hope that some new item will make us happier. In a similar vein, many people spend more money on an outfit they wear once for a special occasion than they spend the entire year on clothing they use every week, such as workout wear, jeans, or sneakers. The smarter approach is to put your money where you’ll see it in action and enjoy it the most, thereby reducing purchasing cravings.

Count your blessings. First and foremost, being grateful—not just for possessions, but also for the people, places and simple pleasures in life—is good for the soul. But an attitude of gratitude is also a proven antidote to impulse purchasing because it creates a sense of abundance within the individual. When you’re feeling full of gratitude, you’re less likely to subconsciously try to fill emotional holes by treating yourself with gifts and accumulating more stuff.

Turn off the temptation. Imagine having a friend who was constantly telling you about seemingly terrific deals (half-off watches!), or that you simply had to try the new pizzeria in town (free dessert!). Hearing about these offers puts you in the position of considering purchases you might not otherwise have noticed. Worse, you’re likely to get worn down over time, so that you end up jumping at some offer partly to reward yourself for all of the times in the past you behaved virtuously and passed on the latest bargain. These are the effects of signing up for email subscriptions from retailers and deal sites. If you’re trying to rein in your spending, simply cancel those subscriptions. Forget the idea that they somehow save you money. You’ll save a lot more by remaining ignorant of all those seemingly amazing bargains.

Play the waiting game. When you’re tempted to buy something on a whim, wait at least 20 minutes. Then, after clearing your head, reconsider how and when you’ll actually use the product. Instead of simply choosing to have it or not have it, think for a moment about what else you might prefer instead—such as the freedom of having less debt or a bigger purchase that requires saving, such as college tuition, a house or retirement. When considering larger purchases of, say, anything more than $100, make the wait period 24 hours. The typical impulse purchase seems a lot less like a “must-have” after sleeping on it.

Learn to share. I’m not talking about the explosion of “sharing economy” businesses that facilitate things like car-sharing and bike-sharing. I’m talking about the old-fashioned DIY method of buying something with a friend or neighbor and owning it jointly. I recently watched two young women negotiate sharing rights for a relatively expensive gold necklace they both wanted and ultimately bought together at Nordstrom. And I interviewed a family that purchased backyard play equipment with their neighbors. That family is also ingenious about repurposing. For example, they decorated homemade birthday cards with buttons taken from worn-out shirts (which were cut up and used as dust rags). I’ll admit these practices can seem time consuming and not commonplace—but they’re inspiring, and perhaps there’s an opportunity to share or repurpose that will eliminate a new purchase in your life.

Buy only what you need, right now. Part of what makes shopping so alluring is the mental vacation that comes with imagining how a product can be used, such as, “I’ll turn heads in this outfit,” or “We’ll have the wildest parties with this cocktail shaker.” But most homes are cluttered with unused merchandise (often with the tags still attached) purchased for, say, an African safari that never materialized or a slimmer figure that has yet to be acquired. Don’t let your imagination divert attention from the cost and practicality of an object, nor from reality. Before making a purchase, ask yourself if you’ll be using the item in the very near future. If the answer is no or not likely, pass.

Focus on the bottom line, not freebies. “Free” is the four-letter word that always seems to work in marketing. But the free gift with purchase, the free bottle of water while you’re shopping, and the free samples can all cost you. For one thing, getting something for free creates a sense of obligation that makes it harder to say “no” to a persuasive salesperson. Shoppers also often use the free gifts included with purchase to rationalize buying something that’s way beyond their budget. I’ve seen otherwise highly intelligent, logical people spend a fortune to get something for free. And the irony is completely lost on them.

Remember that it’s okay to buy nothing. Shopping takes time, and it can feel like time wasted if a purchase isn’t made. Outlet malls, which typically require a significant drive, are particularly dangerous places for people trying to reduce their consumption. It’s not uncommon for people to purchase something they don’t really need rather than to leave empty-handed, with the feeling like the trip was a total waste. The same phenomenon occurs in upscale “destination” boutiques and at e-retail sites that have drawn shoppers in for significant amounts of time. But don’t fall for the notion that you’ve wasted time if you shop and don’t buy. The truth is that buying something you don’t need only makes for more waste.

Do some quick math as a reality check. If you earn an hourly wage, do a little simple division to see how much of your time, effort, and work is eaten up by a potential purchase. The thought that three hours of your work barely covers the cost of some restaurant meal is likely to inspire you to cook more. The same concept works for salaried workers, just first do the math to break down your roughly per-hour take. Alternately, you could compare the cost of a new purchase to the amount in a savings account, or how long it took to save that amount. Calculating that the cost of a new TV would swallow 50% of the savings that took you two years to compile should be enough to give you pause. Likewise, if you’re really trying to get a better sense of how much you’re spending, don’t use credit cards. Spending with cash feels more tangible, more like you’re spending real money that required your real time, sweat, and effort to earn—and that’s the whole point.

Buy for the right reasons. Research shows that we can think we’re hungry when we’re actually thirsty, think we’re tired when in reality we’re bored, and so forth. In other words, we’re pretty good at identifying when we need something, just not so good at identifying precisely what it is we need. The concept translates directly into the world of shopping and buying: People often buy stuff not because they truly need the stuff, but to fill a variety of other psychological needs, including the craving for human contact, relief from boredom, the opportunity to feel totally competent and in control, and the mental stimulation of something unique or beautiful. To buy less, don’t confuse the real reasons you’re shopping; the tips above about practicing gratitude and waiting for a specified time period before making a purchase should help boost awareness of what it is you truly need.

Shop for stuff you need, not sales. Another of the psychological reasons that many people over-shop and buy is to get a burst of feel-good dopamine that accompanies sale shopping. Snagging a coveted item at 30% off can feel like winning a prize. But sales are nothing special: Virtually everything is discounted at some point in today’s retail world, and at least three-quarters of the purchases shoppers tell me they regret making were bought on sale. They often say they the item isn’t quite the right size, color, shape, or style—but what got them hooked was that the price was right. This is silly, of course. If you don’t like the item, there’s no price that makes it a smart buy. I’ve also found that sale-focused shoppers, ironically, tend to spend more total money than others. Remind yourself when shopping that the point is to seek good-quality items you need, not random stuff that is appealing solely because of a seemingly good price.

MORE: How Do I Set a Budget I Can Stick To?

Hey Impulse Spenders, Here’s a Solution to Your Bad Habit

_____________________________________________________

Kit Yarrow, Ph.D., is a consumer psychologist who is obsessed with all things related to how, when and why we shop and buy. She conducts research through her professorship at Golden Gate University and shares her findings in speeches, consulting work, and her books, Decoding the New Consumer Mind and Gen BuY.

MONEY consumer psychology

Hey, Impulse Spenders: Here’s a Solution to Your Bad Habit

shopping bags
Martin Barraud—Getty Images

If you make too many impulse purchases and later regret them, there is a simple cure: gratitude.

A study recently published in Psychological Science shows that an attitude of gratitude tempers impulsive urges. In the study, participants had the option of receiving $54 now or $80 in a month. The researchers then induced moods of happiness, neutrality, or gratitude. Participants in the happy or neutral groups preferred the smaller sum immediately—the typical response in delayed gratification experiments.

The surprise came from those who felt grateful. They preferred to wait for the larger sum, which is the smarter, if less immediately gratifying, option.

The authors don’t say why gratitude forestalls impulsiveness, but their findings make sense within the context of my own research. I’ve found that people typically purchase impulsively for one of two reasons. They do so 1) to counteract a sense of emptiness, boredom, or void in their lives; or 2) because they are not fully focused when making a purchase. Gratitude can be the antidote in both of these scenarios.

Fill the Void
Impulsively snapping up a bargain or a trinket (or more) can provide an emotional boost, even a genuine momentary thrill. A void you feel—which can range in magnitude from simple boredom to a deep emotional need for human connection—is temporarily filled in the act. Sometimes the pleasure of some new “find,” or just the distraction of the transaction is subconsciously more what people are shopping for than whatever it is that’s actually being purchased.

People that “fill up” with impulsive purchases in this manner are often thought to be motivated by simple greed. What I’ve found, though, is that the catalyst is not so much greed or materialism, but emotional relief. Momentary lapses of impulse control are frequently fueled by an urge to feel something different—to get out of a funk and change your mood.

Feelings of gratitude, not just for possessions, but for almost anything—a friendly encounter, a cool breeze, a tasty lunch, a nice text from your kid, a beautiful landscape—are nourishing. It’s harder to feel a void or sense of emptiness when you pause and notice how much you have. It makes sense that everyone, not just shoppers, exhibit greater levels of impulse control when they feel thankful.

Get in Focus
Consumers’ minds nowadays are drawn in different directions by nonstop multitasking, and anxiety and sleep deficiencies are on the rise as a result. Focused decision-making, particularly on seemingly non-urgent tasks such as shopping, is on the decline, as is truly focusing on anything, it seems. No wonder I increasingly hear, “What was I thinking when I bought this?” from shoppers I interview. An exhausted, distracted brain pays less attention to everything and therefore has less bandwidth to forestall impulsive purchasing.

The calming focus of gratitude can help. A few seconds of thankfulness is not only a mood elevator, it’s a fast and simple mindfulness exercise that improves focus and can stave off mindless, impulsive spending.

But if you’re trying to rein in impulse spending, wouldn’t it make more sense to simply force yourself to pay closer attention to purchases, rather than trying to focus on feelings of gratitude? Well, no. Focusing on purchases is actually harder than it seems. Why? It’s boring when compared to the thrill of the purchase, and therefore consumers are apt to forget they’re supposed to be mindful and think twice about what they’re buying.

Also, paying close attention to purchases comes with the possibility of arousing negative emotions—feelings concerning problems with debt or budgeting, or pressures about responsibility and what you should or should not do. Our self-protective, irrational brains are likely to look for an easy “out” to get rid of these bad feelings, ironically often by simply losing focus and doing things mindlessly, impulsively. That’s why so many consumers experience a mismatch between their good intentions and ultimate actions when it comes to shopping.

Gratitude is a gentle way to force focus, and it creates a sense of abundance that transcends the need for a momentary shopping boost. As a bonus, there are lots of other benefits to feeling and expressing gratitude—most notably, happiness.

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Kit Yarrow, Ph.D., is a consumer psychologist who is obsessed with all things related to how, when and why we shop and buy. She conducts research through her professorship at Golden Gate University and shares her findings in speeches, consulting work, and her books, Decoding the New Consumer Mind and Gen BuY.

MONEY consumer psychology

Why We Always Fall for Products Making Outlandish Claims

140620_EM_Suckers_Skechers_1
Chris Weeks—WireImage

Who would be foolish enough to fall for "shoes" that make it feel like you're running barefoot, or cookies that promise to make women's breasts bigger? Lots and lots of people, apparently.

Even the smartest consumers can be tempted to buy a product based on some marketing claim that, deep down, everyone knows can’t be true. Why?

We live in a time when modern-day snake oil, in the form of not-so-miraculous “miracle” products that are misleading if not worse, is around every corner. For example, based on sales totals, it looks like more than 70 million Americans believed Vibram’s claim that running in “shoes” that brought you a step closer to jogging barefoot would improve their “foot health.” Vibram, creator of the thin-soled FiveFinger running shoes that fit each toe like a glove, was unable to substantiate that claim, and the company settled a $3.75 million lawsuit this spring, entitling buyers to refunds.

Last summer, Skechers began paying out a $40 million class action lawsuit to more than a half million people who believed it when the company (and spokesmodel Kim Kardashian) said the shoes could not only tone muscles but also help them lose weight and improve their cardiovascular health. Reebok and FitFlops have also lost lawsuits on behalf of millions of other consumers who believed similar overstatements about the power of shoes to basically do our workouts for us.

Though consumers apparently have a soft spot for supposedly miracle-performing footwear, we’re not just suckers for hyped-up claims about shoes. Millions have purchased weight-loss potions that promise users they’ll lose fat without changing the exercise and eating habits that piled on the pounds in the first place; or lotions that can sprout new hair on bald heads. (It certainly doesn’t help that medical experts like TV’s Dr. Oz sometimes seem to endorse dubious weight-loss products.) This spring, the FTC announced that Lice Shield, a “lice-prevention” shampoo, deceived customers and exaggerated claims, and ordered the company to pay $500,000 and stop pretending that the product was “scientifically shown to repel head lice.” Another recent FTC settlement will stop the company that makes a supplement called BrainStrong Adult from claiming it has clinical proof the product “improves adult memory.”

Sometimes, the claims are downright laughable, like the F-Cup Cookies sold in Japan that are supposed to make your breasts bigger.

How could anyone fall for such claims? How can people not know better? What’s behind our will to believe when common sense tells us otherwise? There are four particularly strong forces at work: one is human nature, and three are unique to our times.

1. We are hopeful. If we’re lucky, we have a healthy dose of a charming, positive and essential human quality: hope. Add a dash of that particularly American characteristic, optimism, and we have the potential to be led astray. Hope gives us the will to try, while optimism gives us fortitude. Untempered by common sense and logic, though, hope and optimism can devolve to gullibility. The solution is not to decrease hope—it’s to blend in wisdom, and a bit of skepticism.

2. We see miracles in action every day. One marvelous technological advancement after another, from GPS systems to smartphones, has taught us to believe in innovation. “New” has never been better, and we eagerly await the next bit of wizardry. We’re more trusting and less skeptical of innovation, and therefore more likely to believe that the next big thing is really all that—the next big thing. That puts a damper on an age-old adage that’s kept us on the straight and narrow for years: “If it sounds too good to be true, it probably isn’t true.” Today’s gadgets and innovations sometimes actually are as good as advertised. Which means consumers have to be craftier in ferreting out potentially false claims and examining the reputation of the source.

3. We have no attention spans. Evaluating products, and product claims, is harder today because of another side effect of technology—saturated with stimulation, we increasingly skim and rely on visual cues such as photos and symbolism to get the gist of what some hot new thing does. Nobody has ever been a fan of “fine print,” but today we’re less tolerant than ever. Nobody has the time or interest to dig deeper. Shorter attention spans have resulted in less patience to temper hope and optimism with thinking things through.

4. We are manipulated by marketers. Lastly, consumers are up against some brilliant marketing minds—professionals who are now armed with reams of data and psychological insights. Marketers increasingly use psychology to understand the deepest motivations of consumers and create the most resonant messaging. Most apply those insights to more fully satisfy consumers and gain an edge in a fiercely competitive marketplace. But some are less honest. Marketers have always been some of the best communicators in the world, and today they’re more aware and arguably better than ever.

Deep down, we want to believe in magic. Human beings always have. Thanks to the spectacular increase in innovation, from smartphones to self-driving cars, there’s proof that products can do seemingly magical, miraculous things. But the existence of amazing gadgets isn’t an excuse to lose grasp with reality. Smart shoppers temper hope, optimism, and awe with critical reasoning. It seems like a downer, but it’s never been more important.
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Kit Yarrow, Ph.D., is a consumer psychologist who is obsessed with all things related to how, when and why we shop and buy. She conducts research through her professorship at Golden Gate University and shares her findings in speeches, consulting work, and her books, Decoding the New Consumer Mind and Gen BuY.

MONEY Shopping

The Three Cardinal Rules for Father’s Day Gift Giving

Homemade I Love Daddy sign
Courtney Weittenhiller—Getty Images

Dads like being acknowledged, but they can do without elaborate displays—and certainly don't want money being wasted. Follow these rules and you'll be OK.

Su Young Kim, a 30-something owner of a salon in California, was surprised by what her father asked for as a Father’s Day gift. “He said that if I was going to waste my money on something he didn’t need or want again this year, I might as well just give him the cash and save us both some trouble,” said Kim.

Most fathers aren’t quite as blunt, but according to my annual anecdotal survey of dads, they pretty much want what Kim’s dad wants. Not cash, necessarily, but for their kids to not waste their money.

No wonder Father’s Day is the tiniest American gift-giving holiday, accounting for $12.5 billion in consumer spending this year, according to the National Retail Federation. Spending on Mother’s Day, by contrast, was estimated at more than $20 billion.

And no wonder Father’s Day can be a frustrating holiday for gift givers. Most want to surprise, delight, and honor their dads, for good reason. Instead, however, too many sons, daughters, and spouses end up either spending too much money, getting something off the mark or silly, feeling guilty because they didn’t put in much thought or effort beforehand, or some combination therein. To avoid the pitfalls, here are three cardinal rules, endorsed by dads, for fool-proof Father’s Day gift giving:

1. Keep it Simple

This year, and every year that I’ve surveyed fathers, what I hear is that their identity as fathers doesn’t mesh well with lavish Father’s Day celebrations. It seems there’s something unmanly, or “undadly,” about being pampered. Dads pride themselves in providing for others, and they can feel uncomfortable when the tables are turned.

Even though most dads downplay the significance of Father’s Day, there is nothing more important to them than being fathers. According to the 2014 Dove Men+Care Dad Portrayal Research Study, 94% of American fathers prioritize their families over their careers, and three-quarters say they organize their lives around family so they can spend more time with their children. So, regardless of how “undadly” it feels to be celebrated, fathers are likely to feel hurt if they’re not feted on our national day devoted to fatherhood.

Dove also posted this video celebrating dads that made me cry, and then made my husband cry when I made him watch:

How do you balance the need to honor dads without going overboard and making them feel uncomfortable? The solution is to keep it simple. Katy Short, a financial advisor and mother of two children under 5, wrapped up her brilliantly simple Father’s Day plans in one sentence: “We’ll give him lots of kisses, some cologne he wants, and then we’ll dance.”

2. Spend Wisely, Not Wastefully

When I ask dads what they’d like for Father’s Day, many start their response with something they want that’s in the best interests of their kids. “I want my son to get a job,” is a common answer, usually followed by laughter or eye rolling. “I want my kids to be happy,” is another one I hear regularly.

Or like Kim’s father, they respond in a way that essentially says they want their kids to spend their money wisely. Evidently, fathering doesn’t take a holiday. In some ways, the gift a son or daughter picks is a measure of the lessons they’ve learned (or not) from their father. When you spend wastefully on Father’s Day, dads are likely to think that they’ve failed to teach you to not spend wastefully. Your dumb spending reflects poorly on their roles as fathers, even if what you’re spending money on is your dad.

Most dads are gracious when receiving gifts. But when handed presents such as flashy sunglasses or expensive cufflinks, they are probably thinking something along the lines of What did I do wrong? Didn’t I teach this kid about the value of a dollar?

It’s not that dads don’t want budget-busting lavish gifts—they just don’t want them from you. Instead, if your father has been needling you to read a particular book or try a sport, make a Father’s Day gift by showing him you were listening. Then wrap it up in a bow by asking him to discuss the book or play the sport with you. Above all, for heaven’s sake demonstrate that your father has done a good job raising you by not wasting money on something he doesn’t need and will never use.

3. Be Thoughtful

This is the golden rule for all gift giving, of course, but it applies big time for Father’s Day. For the most part, dads want to feel appreciated, and to spend some quality time with their families on Father’s Day. When pressed for an actual gift they’d like to receive that costs actual money, the top choices I hear from fathers are typically celebratory events like sharing a special meal together or tickets to a ball game. Evidently, kids know their dads pretty well. Of those who are purchasing gifts for fathers (or husbands on behalf of younger kids), the top two categories are greeting cards that thank dad for all his does (63%) and special dinners or outings where the crew can be together and have fun (43%).

Russell, a father who preferred not to use his last name for fear of offending his less-than-perfect gift-giving son, summed up what he wants and what he thinks most dads want this way: “It has to be something personal. They have to spend time thinking about what their dads would really like, or spend time with them–like making a breakfast in bed or spending the day fishing.”

Russell got a gushy handmade card and a bottle of wine from his adult daughter last year, and he said both were perfect because they were so incredibly thoughtful. His daughter had taken the time to learn about wine, and had researched his tastes to pick out just the right bottle. And Russell told me that he still has the gushy card – along with every other one he’s received since his daughter was old enough to draw.

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Kit Yarrow, Ph.D., is a consumer psychologist who is obsessed with all things related to how, when and why we shop and buy. She conducts research through her professorship at Golden Gate University and shares her findings in speeches, consulting work, and her books, Decoding the New Consumer Mind and Gen BuY.

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