Infomercials, QVC, & HSN: Do I Really Need That?

When suffering from bouts of late night (or early morning) insomnia, nothing puts me to sleep like the smiles and promises that flash across the television screen during an infomercial. Most of us have seen them--infomercials that offer amazing deals on things we all must have, and home shopping channels that we must call right away to ensure we get the item we need before it sells out. When we see that the seller is "throwing in free gifts," reducing the number of payments if we call within the next three minutes, and boasting high customer satisfaction through "unscripted" testimonials, it's hard not to fall for such attractive offers. Each of us starts to tell ourselves, "Yes, I really do need a steam cleaner," and "I've always wanted to make my own ice cream." And of course, we're always in luck because for a limited time only, the handy steam cleaner of your dreams only costs three easy payments of $39.99 and the easy-to-use ice cream maker comes with a free, revolutionary ice cream scooper.

Why are we lured so easily into buying things we just don't need, or even want? Has our culture become so rooted in materialism that we cannot make the distinction between wants and needs anymore? Bill McKibben in The Age of Missing Information says that, "On these channels—the shopping networks, the channels that devote half their day to the ‘infomercials’—you are more and more encouraged to buy simply because the very act of buying will make you feel good” (123). This is an insightful thought that not only makes me think about where human desire might stem from, but also about people's decision-making abilities in an economic sense.

One assumption in economics is that when consumers buy something, they make a logical decision based on perceived value and the belief that the benefit they will receive will be greater than the cost incurred to purchase the item. However, many times, consumers don't exactly know if the cost of buying an item will be less than the benefit they will receive from it. This is a topic discussed frequently in the field of behavioral economics. In this relatively new field, psychology and economics meet, leading economists to better understand some of the economic decisions people make everyday that are seem irrational.

Here are some links to interesting articles about the behavioral economics:

Why We Buy What We Buy

Behavioral Economics on Why We Buy What We Buy

And here is the video I made about infomercials, QVC, and HSN: