Doom Spending:
Why Do People Keep Spending in Times of Crisis?
Recession, inflation, uncertainty – logically, one would expect consumers to cut back on spending. Yet, reality often proves the opposite: impulsive or unnecessary purchases increase. This behavior is known as “doom spending” – spending in the face of crisis. But what drives it, and what does it mean for businesses?
What is Doom Spending?
Doom spending describes consumer behavior where, during crises such as economic downturns, wars, or climate anxiety, people spend more – not less. Purchases are often driven not by necessity, but by emotion: fear, anxiety, or the feeling that “life is short, so spend now.”
Psychological Drivers
- Seeking instant gratification – When the future looks uncertain, people look for joy in the present.
- Regaining a sense of control – Shopping provides the illusion of control over one’s choices.
- Social influence – Social media amplifies “now or never” culture, which becomes stronger during crises.
What Does It Mean for Businesses?
Doom spending presents both opportunities and risks.
- Opportunity: Companies can position their products as comfort, relief, or sources of joy in difficult times.
- Risk: Exploiting consumer vulnerability raises ethical issues. Short-term gains may lead to long-term reputational damage if businesses cross the line.
Conclusion
Doom spending is not simply irrational spending – it’s a deeply human coping mechanism in uncertain times. For businesses, the key is to understand the behavior and approach it responsibly, aiming to support rather than manipulate consumers.