The Psychology of Money and Why We Spend it on Home Theaters
People buy expensive, high-end home theater systems for a variety of reasons. Some people enjoy the latest and greatest technology, while others may want to show off their disposable income. Some people just like nice things, and others might be driven by simple envy; they want what someone else has. Whatever the reason, there is no disputing that home theater enthusiasts love high-end equipment. But why do we spend so much money on home theaters?
Part of the reason that we spend so much on home theater systems is that there is a wide range of prices to choose from. We can go online and buy $29 HDMI cables or $499,000 home theaters with enough speakers for an entire village! Whichever home theater system we choose to buy, it will likely be the most expensive entertainment equipment that we own. The psychology of money suggests that some people are more willing to spend large amounts on products because they may view them as an investment while others avoid spending large amounts on depreciating goods.
A person’s willingness to spend money on a home theater system is directly related to their desire for it. In general, people who are less interested in home theaters will be more likely to drive a hard bargain and negotiate prices down, while those with a strong interest in home theaters will try to find any possible way to afford one, including taking out loans or putting purchases on their credit cards.
It is sometimes easier to buy things when they are on sale or when there is a significant discount offered by retailers in order to get you to part with your money. Advertisers know that emotional triggers will entice people to buy products. They can be very effective at getting consumers to want what they are selling, which means spending money and comparing prices to get the best deals.
Another reason we spend so much money on home theaters is that we enjoy them! A perfect example of this can be seen when people go out and buy a new smartphone; they say that they need it. However, once you start asking questions, you find out they really don’t need it. They just want to upgrade! Essentially people who spend money on luxury items enjoy owning them and spending time with them even if they don’t need them. It’s worth noting that not everyone falls into this category, but for the most part, feelings of enjoyment can lead to more expensive purchases, including home theaters.
It is worth noting that our emotions can cause us to make very large purchases by triggering what marketers call The Ikea Effect. This means that we tend to value things more after we own them, and this applies both in the business world and when it comes to our home theaters. We love watching movies on them, but once they are installed, we tend to forget about their true cost and remember the fun we had installing them. This means that we may become attached and place a higher value on our home theaters, which could lead us to spend more money on them than we originally planned.