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The Fiscal Fitness Podcast, Episode 56: Cognitive Biases and How They Affect our Spending (Part 4)
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This episode is part four of our six-part series on cognitive biases and how they affect our spending habits and financial decisions. (Make sure you check out part 1, part 2, and part 3 if you haven’t yet.) In this episode, we discuss how the Bandwagon Effect is impacting the purchases we’re making, but also the emphasis we place on the importance of those purchases in our lives.

In this episode, we cover:

  • The Bandwagon Effect – what it is and how it’s being used to affect our  decision-making
  • How the bandwagon effect shows up on a regular basis for us in marketing, social media and more
  • How it’s impacting the purchases we make and leading us to fall for temptations.  Check out our blog post on overcoming temptation here
  • How we can overcome the bandwagon effect.

Solutions to overcome the bandwagon effect:

  • Solution 1: Become aware of how the bandwagon effect shows up and how businesses use this to impact us.
    • Ask yourself, “How is this brand trying to make me feel included right now?”
  • Solution 2: Have a list of the things you want to buy along with the things you don’t want to buy- that way if you’re being tempted, you can be reference your list to see where it stands – where did you prioritize that when you were feeling logical and rational?

Resources:

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