Caffeinated Consumers: Do They Buy More?

Dipayan Biswas, PhD, Patrick Hartmann, PhD, Martin Eisend, PhD, Courtney Szocs, PhD, Bruna Jochims, PhD, Vanessa Apaolaza, PhD, Erik Hermann, PhD, Cristina M. Lopez, PhD, and Adilson Borges, PhD

About 85% of Americans consume at least one caffeinated beverage every day.¹ Caffeine is a staple in Americans’ consumption habits due to its effects as a powerful stimulant, but some effects of caffeine consumption may influence the spending behavior of consumers. Consumers often shop online and in physical stores while or shortly after drinking caffeinated beverages, and this is further facilitated by the presence of coffee shops and in-store coffee bars in and around retail stores.

We performed three field studies and two lab experiments to explore how drinking caffeine before shopping affects retail purchasing behavior. We conducted experiments in retail stores and labs and found that consuming caffeinated drinks before shopping increases the number of items purchased and the total amount spent. This was especially true for high-hedonic products—that is, for products with a strong emotional appeal and that are associated with pleasure, enjoyment, and luxury. Examples of high-hedonic products are luxury goods, chocolates, perfumes, and expensive jewelry. In contrast, low-hedonic products are those that do not have a strong emotional appeal and are typically purchased for their functional benefits, such as household cleaning products, office supplies, and basic clothing items.

It is important for sellers to understand how caffeine consumption affects spending. From a consumer perspective, moderate caffeine consumption may have health benefits, but it can also lead to unintended negative financial consequences. While this research is primarily focused on impacts to retail consumerism, there are likely also implications for real estate professionals and their clients.

Study One

Our first study was a field experiment that examined the effect of caffeinated versus decaffeinated espresso on consumer purchase behavior and arousal. The experiment was conducted at a retail store, where customers were offered a free cup of either caffeinated or decaffeinated espresso. At the end of the study, customers who accepted the offer were asked to show receipts and complete a survey on their shopping experience, mood, and arousal level. The study found that customers who consumed caffeinated espresso purchased more items and spent more money than those who consumed decaffeinated espresso. Additionally, customers who consumed caffeinated espresso reported feeling more excited during the shopping trip than those who consumed decaffeinated espresso. However, there was no significant difference in overall mood between the two groups.

Study Two

Our second study aimed to replicate and expand upon the findings of Study 1 with respect to the effects of caffeine consumption on shopping behavior. Study 2 was conducted in a retail store, and the experimental condition was consumption of caffeinated espresso vs. consumption of water. Participants were assigned at random to either the “caffeine” or the “water” group. The key dependent variable in this study was spending amount, and arousal was also measured. Results showed that participants who consumed coffee had higher levels of spending than those who had water, which is consistent with the previous study's findings. The greater spending effect held for those who routinely consumed up to 2.17 cups of coffee daily, but is attenuated for those who consume higher amounts.

Study Three

The third study aimed to investigate whether caffeine also affects consumer purchases of high and low-hedonic products. This study was conducted in a retail store where participants were offered either caffeinated espresso, decaffeinated espresso, or water upon entering the store. The beverage that each participant received was used to manipulate caffeine intake, and participant purchases were recorded. Once again, consumption of caffeine resulted in increased spending, more items purchased, and more hedonic items purchased. The lab experiments yielded similar results.

Findings and Implications in Real Estate

Caffeine consumption can influence shopping behavior, leading to higher impulsivity and increased spending. We found that consuming a caffeinated beverage before a shopping trip results in consumers purchasing more items and spending more money. This is particularly true for high-hedonic products, which are associated with impulsive buying behaviors.

Buying a home may be considered a high-hedonic purchase for some people, particularly if it is a luxury property or a dream home that fulfills emotional desires. However, for others, it may be a low-hedonic purchase that is primarily driven by functional needs, such as the need for a larger space or for rental income. The hedonic nature of a purchase largely depends on the individual's perception of the product and their motives for purchase.

The implications of these findings are important for home buyers, sellers, and real estate agents. Agents and their sellers may benefit financially by offering caffeinated beverages to potential home buyers during viewing appointments or open houses, as this may lead to higher impulsivity and possibly to increased spending from potential buyers.

On the other hand, buyers should also be aware of the potential unintended consequences of consuming caffeine prior to or while looking at listed homes, as caffeine consumption leads to higher impulsivity and may lead to increased, unintended spending.

In conclusion, caffeine consumption can influence shopping behavior and lead to increased spending, particularly for high-hedonic products. For residential buyers, certain amenities—such as pools, outdoor kitchens, and spa bathrooms—may have their hedonic value increased for buyers who consume caffeine prior to viewings. Real estate professionals might benefit from offering caffeinated beverages to potential buyers, while buyers should be informed of the potential unintended consequences of consuming caffeine before or during home viewing appointments.

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Recommended Reading

Biswas, Dipayan, Patrick Hartmann, Martin Eisend, Courtney Szocs, Bruna Jochims, Vanessa Apaoloza, Erik Hermann, Cristina M. Lopez, and Adilson Borges (2023), “Caffeine’s Effect on Consumer Spending,” Journal of Marketing, 87(2), 149-167.

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Reference

1. Mitchell, Diane C., Carol A. Knight, Jon Hockenberry, Robyn Teplansky, and Terry J. Hartmann (2014) “Beverage Caffeine Intakes in the U.S.” Food and Chemical Toxicology, 63(January), 136-42.

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About the Authors

Dipayan Biswas, PhD
Frank Harvey Endowed Professor of Marketing, University of South Florida
Dr. Dipayan Biswas’ (PhD – University of California, Irvine) research interests are in the domains of sensory marketing and digital marketing, with focus on topics related to retailing, food, and health. His research has been published in Journal of Consumer Research, Journal of Marketing, Journal of Marketing Research, Journal of Business Research, and Journal of the Academy of Marketing Science, among others. Dr. Biswas is Co-Editor-in-Chief of Journal of Business Research, Area Editor of the Journal of the Academy of Marketing Science, and on the editorial review boards of Journal of Consumer Research and Journal of Marketing. He is past Associate Editor of  Journal of Marketing Research, Journal of Retailing, and Journal of Public Policy and Marketing. His interviews and research have been featured extensively in the media, by over 200 media outlets, including the Wall Street Journal, The New York Times, The Washington Post, ABC, CBS, CNN, Fox, NBC, NPR, BBC, U.S. News & World Report, Men's Health and Women's Health magazines and the Tampa Bay Times, among others.

Patrick Hartmann, PhD
Associate Professor of Marketing, University of the Basque Country (Spain)
Dr. Patrick Hartmann’s (PhD – University of the Basque Country) research interests are in consumer behavior, communications, and environmental marketing. His research has been published in journals such as the Journal of Marketing, Journal of Advertising, Journal of Business Research, Journal of International Marketing, , among others. He has received best paper awards from the American Marketing Association, the European Advertising Academy, the Spanish Marketing Association, and several academic journals.

Martin Eisend, PhD
Professor of Marketing, European University Viadrina, Frankfurt (Germany)
Dr. Martin Eisend’s (PhD – Free University Berlin) research and teaching interests focus on marketing communication and advertising. He is not only interested in the entrepreneurial relevance of these areas, but also in their social significance. He has published over 90 articles in peer-reviewed international journals. Martin is considered an international expert in meta-analytic methods and has offered meta-analysis workshops at universities all over the world. Dr. Eisend serves on the editorial review boards of all major advertising and marketing communication journals. In 2017, he founded and currently serves as the director of the Center of Market Communications. He was the president of the European Advertising Academy (EAA) from 2018 to 2021, and currently serves as Vice President of the American Advertising Academy (AAA). Since 2018, he is the European University Viadrina’s Vice-President for Research, Young Scientists, Entrepreneurship and Transfer.

Courtney Szocs, PhD
Associate Professor of Marketing, The Pennsylvania State University
Dr. Courtney Szocs’ (PhD – University of South Florida) research interests are in the domain of retailing and sensory marketing. She investigates how sensory cues in the retail ambience (e.g., music, lighting) influence consumers’ product perceptions and consumption decisions. Her work is published in the Journal of Marketing Research, Journal of Consumer Research, and Journal of the Academy of Marketing Science, among others.

Bruna Jochims, PhD
Assistant Professor of Marketing, SKEMA Business School (France)
Dr. Bruna Jochims’ (PhD – NEOMA Business School) research interests include sensory marketing, consumer behavior, consumer psychology, decision-making, and societal marketing. She is co-editor for the Academy of Marketing Science and a reviewer for the Journal of Consumer Marketing and Psychology and Marketing.

Vanessa Apaoloza, PhD
Associate Professor of Marketing, University of the Basque Country (Spain)
Dr. Vanessa Apaoloza’s (PhD – University of the Basque Country) research focuses on consumer behavior, advertising, environmental consumer behavior, and female psychology. Her research has been published in journals such as the Journal of Marketing, Journal of Advertising, Journal of Business Research, Journal of International Marketing, among others. She has received best paper awards from the American Marketing Association, the European Advertising Academy, the Spanish Marketing Association, and several academic journals.

Erik Hermann, PhD
Chair of Marketing, European University Viadrina, Frankfurt (Germany)
Dr. Erik Hermann (PhD – European University Viadrina) is an experienced practitioner and scientist with interdisciplinary research interests in consumer behavior/psychology, ethical and socio-technical perspectives on AI in marketing, advertising effectiveness, and media effects. He has served as a consultant for Mazars Digital Solutions, project manager at SME Competence Center and Scientist Artificial Intelligence, and head of marketing and investor relations at Deutsche Payment A1M SE.

Cristina M. Lopez, PhD
Associate Professor of Marketing, University of the Basque Country (Spain)
Dr. Cristina M. Lopez’s (PhD – University of the Basque Country ) current research focuses on consumer behavior and online socializing. Her research has been published in journals such as the Journal of Marketing, Journal of Educational Computing Research, Food Quality and Preference, among others.

Adilson Borges, PhD
IRC Professor of Marketing, NEOMA Business School (France)
Dr. Adilson Borges’ (PhD – Universite de Rennes I) research focuses on the implementation of behavioral sciences in marketing, talent development, and innovation. He has more than 25 years of international experience, from Brazil to France, from Asia to the United States, both within the academic and corporate worlds. Dr. Borges served as President of the Academy of Marketing Science before joining Carrefour Group as Head of Learning and Development. Dr. Borges’ research appears in the Journal of Consumer Psychology, Marketing Letters, Journal of Business Research, Journal of Retail and Consumer Services, Journal of Advertising, and Journal of Consumer Marketing, among others. He currently serves as Associate Editor of the Journal of Consumer Marketing and as an editorial review board member for the Journal of the Academy of Marketing Science, Journal of Business Research, and Journal of Marketing Theory and Practice. He recently authored and published his book Test & Learn: The Strategy of Agile Companies.