Abstract Purchases fall along a continuum from ordinary (common or frequent) to exceptional (unusual or infrequent), with many of the largest expenses (e.g., electronics, celebrations) being the most exceptional. Across seven studies, we show that, while people are fairly adept at budgeting and predicting how much they will spend on ordinary items, they both underestimate their spending on exceptional purchases overall and overspend on each individual purchase. Based on the principles of mental accounting and choice bracketing, we show that this discrepancy arises in part because consumers categorize exceptional expenses too narrowly, construing each as a unique occurrence and consequently overspending across a series of discretely exceptional expenses. We conclude by proposing an intervention that diminishes this tendency by helping consumers consider their spending on exceptional items as part of a larger set of purchases.

People construe the world along a continuum from concretely (focusing on specific, local details) to abstractly (focusing on global essences). We show that people are more likely to interpret the world abstractly when they experience cognitive disfluency, or difficulty processing stimuli in the environment, than when they experience cognitive fluency. We observed this effect using three instantiations of fluency: visual perceptual fluency (Study 1b), conceptual priming fluency (Study 2b), and linguistic fluency (Study 3). Adopting the framework of construal theory, we suggest that one mechanism for this effect is perceivers' tendency to interpret disfluently processed stimuli as farther from their current position than fluently processed stimuli (Studies 1a and 2a).

Email field experiment varying whether potential donor has matching surname to in-need teacher and quantifying effectiveness of less-exact matches.