Motley Fool Money Costco, Tesla, and Temptation Bundling
Sep 25, 2020
Katie Milkman, a Wharton Professor and consumer behavior expert, shares insights on temptation bundling—combining enjoyable activities with chores to improve motivation. She discusses how rising temperatures can influence our shopping decisions, often to our detriment. The conversation also touches on Costco's impressive performance juxtaposed against its stock dip, Tesla’s innovations in battery technology, and the struggles of brands like Stitch Fix. Expect a lively discussion on behavioral science and its impact on consumer habits.
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Managing Financial Windfalls
- Prioritize paying down high-interest debts when you receive a financial windfall.
- Establish an emergency fund to cover unexpected expenses, which occur more regularly than we anticipate.
Temptation Bundling
- Combine a temptation with a desired habit using "temptation bundling."
- Only allow yourself to indulge in the temptation while performing the habit.
Heat's Impact on Shopping
- Unusually hot days increase anger and lead to poorer decisions, including shopping choices.
- This effect is demonstrated in studies of baseball pitchers and climate change beliefs.