European Treat Buying Trumps Recessionary Mindset

By Pete Rizzo (@pete_rizzo_)  

“Whether … in response to the economic climate or even the change in the seasons, Europeans are clear that treats are important.”

Jennifer Palmer, head of European Consumer Credit & Charge for MasterCard, issued this statement in conjunction with her organization’s inaugural MasterCard Treat Index, a new study released on November 12 that shed light on European consumer attitudes toward this form of discretionary spending.

MasterCard revealed that the average European consumer spends €51, or roughly $68, a month on a “little something for themselves” or someone else, even in spite of the continued economic difficulties across the region. Notably, personal spending – not gifting – was most profitable for businesses: Europeans spend about €5, or $6.75, less on others.

The study analyzed European treat spending to determine the specific countries where treat spending was most common, as well as the factors that had the biggest impact on this buying process. The results expose regional differences in consumer spending that businesses can leverage to better cater their products to certain markets.

For example, U.K. shoppers were the least likely to spend money on themselves, with one in four consumers saying that buying themselves a treat makes them feel guilty. German consumers, by comparison, were the most likely to splurge on pick-me-ups, spending €72 on their monthly treat purchases.

The results, according to psychologist Linda Papadopoulos, show that regardless of cultural differences, economics or the regional differences in how treats are defined are enough to dissuade consumers from making impulse purchases that increase their happiness.

For more insight and analysis, we break down The MasterCard Treat Index in this PYMNTS.com Data Point.

European Personal Treat Spending By Country

German consumers were most likely to spend money on personal treats – by a wide margin. German consumers spent €14 more on average each month than Italian consumers, who spent €58 monthly and Belgian consumers, who part with €57 per month for such purchases.

The researchers indicated that this difference may be due to Germany’s stronger economic performance.

European Treat Gifting By Country

MasterCard revealed that Turkish consumers were most likely to buy treats for others, spending €58 a month. German consumers, despite spending the most on themselves, were further found to be the second most charitable, paying €55 a month for gifts for others.

Consumers in France, Sweden and the U.K. were least likely to spend money on treats for someone else.

European Treat Spending By Gender

Despite small variations, European men and women were remarkably similar in the factors they said influenced to treat buying, with “to cheer myself up” taking the top spot for both men and women. Men were more likely to splurge on treats over the weekend.

For more insight and analysis into the buying habits of European consumers, view the first MasterCard Treat Index here.