How our view of a rosy past can dictate our actions now

The 

Nostalgia Effect

, explained.

What is the Nostalgia Effect?

Recent research into nostalgia demonstrates that reminiscing about the past leaves us wanting to spend more money now.

Why is it important?

When reminiscing, our values sway more strongly towards social connectedness and away from wanting to hold our money. As a result, our willingness-to-pay increases markedly after experiencing nostalgia. As a result, marketing campaigns often aim to create such feelings among consumers.

Example

A study by Lasaleta, Sedikides, and Vohs (2014) found that participants who were shown nostalgic advertisements had a higher willingness-to-pay immediately afterwards than those who were shown neutral advertisements.