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The holiday season is a time of high risk of impulsive spending – buy something because you see it, not because you need it. Given Namibia's economic slowdown, the attention of its citizens has been a priority. Martha Murorua, Director of Consumer Banking at FNB Namibia, shares her thoughts.
This year, Namibians were reminded of how a single goal can be beneficial for a country despite the difficult economic climate. Families and businesses have learned to appreciate their resources and cope with change, much like Namibian desert lions, who can survive in a hostile environment where it may not rain 5 mm in some years. Creating a secure future begins with building positive habits, both for individuals and for retailers.
Martha quotes David Silvera, professor of marketing and social psychology at the University of Texas, who studies the negative impact of impulse buying on well-being and self-esteem. According to him, although spontaneous moderate purchases can be satisfying (especially for Christmas or other special occasions), studies have shown that buying what you do not need to escape negative emotions is compulsive problem.
Once the luster fades, the same negative emotions often come back with greater intensity. And there is nothing good to make purchases if it puts you in a compromised financial position.
Prof Silvera also believes that retailers have a role to play in ensuring that their marketing messages promote responsible spending behavior. If impulse spending by customers can be profitable in the short term, these consumers can quickly become a credit risk for retailers and finance companies. Lasting benefits and social acclaim are the rewards earned by retailers who adopt responsible consumer spending strategies.
"As Namibians, let's be aware of the impact of frivolous spending – and spend responsible spending to start 2019 on a positive note," Murorua concludes.
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