Non eco Friendly Costco Effect – Rewards Card Fallacy

The Costco Effect is defined by the Devil’s Dictionary as “..consumer enter a store planning to buy toilet paper, and end up charging $1500 on their AMEX card.”

The Wall Street Journal even had an article on this. “Michael Norton, a Harvard University marketing professor, co-authored a yet-to-be-published paper that found people buy more than they intend at Costco because they perceive that prices are better. He believes people end up throwing out food as a result.”

Knowing many Costco regulars or “addicts”, I can agree with the articles.  You visit the store to buy more household items like detergent, paper towels, bread, milk but end up with books, electronics, beef jerky, clothes, and much more in your shopping cart. Shoppers assume they are getting great deals and buy until their garages are overstocked.

This overbuying problem presents itself at other warehouse clubs like Sam’s Club and even to holders of Store credit card with rewards or loyalty program like a Target Credit Card or Amazon Credit Card.  You end up buying extra, often unnecessary items because of a discount, cash back, or sales goal.

We have no problem buying in bulk to save money, but when you add in a bunch of impulse items, you do not save money, you spend more.  Many items are only sold in bulk, so we had first hand experience buying items, eating some, then tossing the rest.  Not very eco friendly and no savings of money.

Try to restrain yourself at Costco or any other store.

Do you really need this item?  Will I really finish this 12 pack?

Never shop when you are hungry!  That sample tasted good, should I buy some?  Eat before shopping.

Also remember that you can return anything to Costco at ANY time, even partially consumed. (Some electronics have a 90 day return period.)

Related posts:

1. Costco Kirkland Signature Eco Friendly Cleaners
2. Costco Solar Electric System Special Event
3. Eco Friendly Green Toliet Paper and Toothbrush
4. Trade-In Used Electronics – Trade in Computer – Sell Cell Phone
5. HP Officejet Pro 8500 Inkjet Printer Eco Friendly, Green?
6. Eco Friendly or Green Coffee Paper Cups
7. How to have a Green Valentine’s Day – What is Eco Friendly Green Sex?
8. Low Power Consumption Computer Video Card – ATI Radeon HD 4350 and Radeon 5450 – Green External Hard Drive

Posted on August 12th, 2010
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