Does Ego Drive Consumers to Make Unaffordable Purchases? A Multi‐Experiment Design

ABSTRACT Across four experiments, this research investigates how ego‐driven motivations, social comparison, and scarcity cues interact to influence consumers' willingness to purchase unaffordable products and their subsequent post‐purchase regret. Experiment 1 demonstrates that ego boosts significantly increase financial risk tolerance and willingness to purchase products exceeding budget constraints. Experiment 2 reveals that exposure to high‐status peer endorsements amplifies aspirational purchasing intentions for unaffordable products. Experiment 3 shows that scarcity cues heighten urgency and override budgetary constraints, particularly when combined with psychological arousal. Experiment 4 establishes that elevated ego amplifies post‐purchase regret for unaffordable purchases, as inflated expectations clash with actual outcomes. Grounded in self‐enhancement theory, social comparison theory, the scarcity heuristic, and cognitive dissonance theory, these findings illuminate the interplay between intrinsic psychological motivations and extrinsic situational triggers in driving indulgent consumption. The research raises important ethical concerns about marketing tactics that exploit psychological vulnerabilities, particularly for financially constrained consumers. Implications include recommendations for transparent advertising, financial literacy interventions, and regulatory safeguards to mitigate manipulative marketing practices and promote responsible consumer behavior.