In recent years, the cost of living has steadily increased, posing challenges for households in meeting their basic needs. Expenses for food, housing, transportation, and healthcare have all risen, placing strain on the average family’s budget. This phenomenon, known as lifestyle inflation, has surpassed the price rise in essential goods and services since FY18, as reported by Mumbai News.
Lifestyle inflation has resulted in individuals allocating more of their income towards non-essential expenditures like luxury items, entertainment, and leisure activities. Consequently, funds that should be directed to crucial expenses are redirected to these more discretionary purchases. This dissonance between the actual cost of living and the perceived cost may lead to financial instability and debt for numerous households.
One significant driver of lifestyle inflation is the growing impact of advertising and targeted marketing tactics. Advertisements are customised to appeal to individual interests and characteristics, influencing consumers to spend on products and services they may not necessarily require. The use of cookies, device identifiers, and other online tracking methods allows companies to collect and analyse data on users’ browsing habits, facilitating the delivery of more personalised and persuasive advertising.
Furthermore, the duration and frequency of cookies being reset on online platforms play a crucial role in shaping consumer behaviour. Prolonged cookie durations provide companies with more opportunities to track user activity and target them with specific advertisements, thus increasing exposure to marketing messages and contributing to the rise in lifestyle expenses.
Moreover, companies utilise user profiles and analytics data based on interactions with advertising or non-advertising content to identify common characteristics among users, enhancing the effectiveness of their marketing efforts. This targeted approach to advertising can lead to increased spending on non-essential items, further driving lifestyle inflation.
The impact of lifestyle inflation is extensive, affecting a broad spectrum of individuals and households. As consumers continue to succumb to targeted marketing and personalised advertising, the gap between essential and non-essential expenditures will continue to widen, leaving many families financially vulnerable.
In conclusion, the surge in lifestyle inflation has resulted in a shift in household spending priorities, with an emphasis on non-essential items. This has been influenced by the use of cookies, device identifiers, and targeted marketing strategies that have shaped consumer behaviour and led to higher discretionary spending. As the cost of living continues to rise, it is imperative for individuals to exercise prudence in their spending habits and make informed choices to ensure financial stability.
+ There are no comments
Add yours