The Role of Price in the Behavior and Purchase Decisions of Compulsive Buyers

The present research examines the relationship between consumers’ tendencies to buy compulsively and their response to price based on a survey of customers of an Internet clothing retailer. The research findings suggest that compulsive buyers possess greater knowledge of store prices and are more brand conscious and prestige sensitive in comparison with non-compulsive buyers. Moreover, compulsive buyers derive greater transaction value from price promotions and are more price conscious and sale prone than non-compulsive buyers.

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► In this study, we evaluate compulsive and non-compulsive buyers’ response to price.
► In a national survey, 16 percent of the sample was categorized as compulsive buyers.
► We find that compulsive buyers tend to have a heightened response to price.
► They possess greater price knowledge, are more brand conscious and prestige sensitive.
► They derive greater transaction value from price deals and are price and sales prone.