Why Gen Z Should Ditch “Virtue” in Consumer Purchases and Embrace the Trader Principle

Source: Foundation for Economic Education
by Kimberlee Josephson

“[T]he more we can spend, the more options we want. And although consumers are more educated today than ever before, purchase decisions are becoming increasingly based on emotions — and marketers are leveraging this fact. Consumers in advanced markets look for psychological attributes rather than primary ones; that is, feelings trump function. This is why people will pay big bucks for a Prada bag even though a Prada knockoff would likely suffice at a fraction of the price. Brands like Prada sell on the basis of exclusivity and esteem, which is why premier labels would rather destroy excess inventory than donate it. … Ethical claims, social labeling, and ESG ratings are all the rage right now, but few consumers know what it truly means — yet they are voting with their dollars to jump on the bandwagon.” (07/24/22)