The Effect of Stress on Consumer Saving and Spending

Abstract

In examining how stress influences consumer saving and spending, the authors propose that consumers who experience a stressful situation allocate their resources strategically to gain control of their environment. A series of studies shows that this strategic allocation of resources occurs in two ways. Consumers experiencing stress may show increased saving behavior, which assures them that monetary resources will be available when needed. Alternatively, consumers experiencing stress may show increased spending behavior, directed specifically toward products that the consumer perceives to be necessities and that allow for control in an otherwise uncontrollable environment. This conceptualization and the related findings can inform assessments of when stress will lead to beneficial or impulsive consumer behaviors.