Halloween Consumer Spending

Halloween is a holiday that is known for parties, all things spooky, horror movies,
costumes, trick or treating, and candy consumption. In the United States holidays have gone
from being family friendly events to a way for marketers to increase consumption. “Halloween is
a
National University Marketing 620
Consuming and Celebrating
on Halloween
BY: ASHLEY BISEK, CHRISTINA CECIL, SHARRON GARZA, &
JOHNATHAN YUNG

Halloween: Consumer Behavior
multi-billion dollar industry. It’s not because of the kids; it’s because shrewd marketers who saw
the possibilities for selling the fright fest to adults” (BrandLauncher.com, 2014). The activities
that we derive enjoyment from in regards to Halloween can be enjoyed at other times of the year.
Halloween has become a way of providing an experience to consumers. This paper will examine
the holiday Halloween and all the consumer behaviors that take place as a result of this holiday.
Halloween has the potential to allow almost year round consumption in relation to
decision making due to the rise of events such as Comic-Con in San Diego where hundreds of
people gather together in costumes to celebrate their favorite characters in movies, games, and
other popular media. “Halloween is a holiday that ranks second (after Easter) in the United States
for candy consumption” (Pottker, 1995, p. 204). This holiday plays an important role in
conditioning children as future consumers. Halloween involves many consumer related
purchases that include several options for consumption. The biggest purchases for Halloween
include candy, apples, and pumpkins followed by costumes. Halloween isn’t Halloween without
candy to pass out to kids trick or treating, caramel apples to enjoy, Jack O’ Lanterns gracing
front porches, and dressing up in costumes.
Halloween provides an opportunity to be scared for fun. It’s not uncommon to find
haunted attractions, haunted events, horror movie nights, and costume parties everywhere. Some
people even attend amusement parks that provide Halloween themed fun such as Universal
studio’s Halloween Horror Nights. Other potential items for consumption in regards to
Halloween can be found almost anywhere and include spooky decorations, face make-up, wigs,
accessories, Halloween and costume props, alcohol, as well as anything that can be used to in the
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process of putting together a costume. Halloween allows for consumers to experience dressing-
up and the chance to be someone or something else for a night. Going along with the theme of
providing a unique haunting experience, Halloween allows consumers the potential for a lot of
different decorating choices. Pumpkins as well as anything with the colors orange and black can
be tied into Halloween decorations. While making purchases for holidays is nothing new, it is
important to understand why we purchase these specific items. What meaning do these purchases
have for us as consumers?
“In 2013, two-thirds of Americans said they would partake in Halloween activities,
spending $75 on average to celebrate for a total of $6.9 billion” (Allen, 2014, p. 1). What drives
consumers to consume in a cultural holiday that only comes once a year? According to a study,
there are four metaphors of consumption typology that affects the way certain products and the
experiences of the individuals or culture that influences how consumers behave; (1) consuming
as integration; (2) consuming as classification; (3) consuming as play; and (4) consuming as
experience (Holt, 1995, p. 1).
Consuming as integration is defined as “how a valued consumption object can become a
constitutive element of a person’s identify or self-concept” (Andrews & Drennan, 2007, p.
3018). Halloween has been a way for individuals to role-play by dressing up in costumes that
they see fit their interests at that moment. Consumers eagerly flock to websites and stores to
purchase costumes and accessories for themselves. According to a survey conducted in 2014,
“more than two-thirds (67.4%) of celebrants will buy Halloween costumes for the holiday”
(Reynolds, 2014, p. 1). Consumers or individuals use the holiday to help identify their
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personality through costumes that can either make them look angelic, demonic, fun, or
uncharacterized. Halloween tends to bring out the inner personality of an individual based on the
type of costume they choose to wear.
Consuming as classification is defined as “how consumers use the consumption object to
classify themselves in relation to relevant others. These practices build affiliation and enhance
distinction” (Andrews & Drennan, 2007, p. 3018). “By the late 1800’s, Halloween had become a
national observance in the United States, characterized by games, divinations, parties, and
especially the children’s custom of ‘trick-or-treating’ dressed in masks and costumes” (Levinson
et al., 1992, p. 219-220). Stores such as Party City fill their stores with costumes categorizing the
costumes based on age, gender, and theme. Bags and bags of candies are on the shelves as well
as eye-catching Halloween decorations.
Consuming as play according to Holt is the most important consumption out of the four
because it “describes how people use consumption objects to play and develops the relationship
between this aspect of consuming and the other three dimensions” (Holt, 1995, p. 3). This is
where the “party” happens. Consumers are using all the four metaphors by interacting with
others that also celebrate Halloween. This is where friends, family, and or both celebrate the
tradition by wearing costumes, passing out candies, going door-to-door for some treats, and just
having fun.
Consuming as experience is defined as “how the consumer experiences consumption
objects embedded in their social worlds that is structured by the interpretive frameworks that
they apply to engage the object” (Andrews et al., 2007, p. 3018). Halloween has been a tradition
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in so many cultures. Halloween was introduced to America by Irish and Scottish immigrants in
the late 1800’s and since then has been proven to be a popular holiday. “Most households in the
United States and Canada participate, and those who don't run the risk of petty vandalism”
(Harris, n.d., p. 8). For years families and friends have been engaged in such a celebration that
the culture and tradition of Halloween is embedded in them. Participating individuals who are
satisfied with the holiday’s events look forward to next year’s Halloween. Individuals who were
unsatisfied this year will only seek for something better next year. The satisfaction of knowing
that there will be another Halloween in the coming year increases the consumer’s behavior next
year.
Consumer behavior is the “study of the processes involved when individuals or groups
select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and
desires” (Solomon, 2013, p. 7). Marketers influence the consumer behavior by manipulating the
psychological perceptual process that involves in the buying and consuming of products.
Marketers who can understand the human brain are in a position to manipulate consumer
behavior. Marketers use consumer’s senses to assist in the perceptual process of manipulation.
The response that arrives from the perceptual process is known as hedonic consumption.
Hedonic consumption is the “multisensory, fantasy, and emotional aspects of consumer’s
interactions with products” (Solomon, 2013, p. 47).
A consumer’s sensory factors focus on products that are unique from other products,
thus, causing the consumer to purchase the item. “Consumers increasingly want to buy things
that will provide hedonic value in addition to simply doing what they’re designed to do”
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(Solomon, p47, para 3). For example, Party City and other stores that participate in the tradition
of Halloween start to display Halloween décor, costumes, and yummy treats a month or two
before the holiday. Consumers want to make sure they get ahead of everyone else, stock up on
goodies, get the best décor, and purchase the best costumes. Why? Consumers don’t want to be
the house that does not have candies to pass out to the trick-or-treaters. According to a study,
“[w]hen it comes to candy, size matters. Children rated houses based on the size and quantity of
candy received” (Levinson et al., 1992, p. 227). Consumers want to decorate their homes and
lawns with the scary items. They also want to participate in the Halloween spirit by dressing up.
Stores like Hallmark are taking advantage of the tradition by placing Halloween related cards on
the racks from scary to funny and for all ages, gender, and life-style. The experience, emotions,
and satisfaction consumers receive from the holiday allow marketers to manipulate how
consumers behave during such holidays. Marketers know by stimulating the senses of consumers
either through sight (Halloween), sounds (décor or Halloween music), smell (candies), taste
(candies), and or texture (the way the costume feels), they can increase the spending behavior of
the consumers that enjoy the tradition of Halloween.
An associative network is defined as “a means of representing relational knowledge as a
labeled directed graph. Each vertex of the graph represents a concept and each label represent a
relation between concepts” (Encyclopedia, 2004). This means that through a series of organized
concepts based on individual’s experiences these concepts are stored in an individual’s
memories. For example, an individual can smell something in the air and the individual can
associate the scent to a memory or experience and label the scent to perfume, the brand, and the
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HalloweenHalloween
store. Below is an example of an associative network of an individual in regards to preparing for
Halloween based on his or her experiences.
Associative Network for Halloween (Garza, 2015)
Consumers were socialized to the cultural expectations surrounding Halloween because
of their peers, society, and past experiences. Halloween is one of the most celebrated holidays
where people of all ages, gender, and life-style participate in. Participating along with society,
friends, and family addresses our needs and wants. Just like Maslow’s hierarchy of needs,
consumers go through the levels of needs to achieve full satisfaction. In addition to meeting our
needs, the culture and traditions of the consumers have been embedded in them for generations.
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Decor
Costume
Goodies
ScarySexy
Zombies
Black
Lights
Candy
Devil
Cleopatra
Beverage
s
Beer
Budweiser
Party City
Wal-Mart

Consumers are responding to wants when they make consumption decisions about
Halloween. Most consumers during this festive celebration want to participate on all levels.
Consumers will be purchasing candy and pumpkins from their respective vendors to ensure they
are able to display their festiveness during Halloween. Candy is used as a traditional door-bell
greeting to kids who dress up and presents a basket for collecting candy. Older consumers will
be participating in Halloween by dressing up in their favorite outfits. Some are motivated by the
desire of satisfaction of belonging, while others are motivated by satisfaction of self. These
desires are fueled by how commercialized Halloween has become. The commercialization of
Halloween has altered the cultural aspect of Halloween and influenced consumer’s decisions to
partake in the festivities. One trend for consumers in the Southern California region would be to
go to Las Vegas, which is only four hours away, to attend the night life there on the strip.
The challenges the consumers face is usually the decisions of what outfit to purchase and
where to attend a Halloween party. Multiple factors go into their wants and needs, which will
sway their decision one way or another. If a consumer feels a need to satisfy their belonging
needs, they will pick an outfit that is socially popular. If a consumer feels a need to satisfy their
hierarchy need of self, then they will pick an outfit that will allow their uniqueness carry through
the outfit. Consumers will be consistently be bombarded by influencers who will try to sway
their purchasing decisions based on their current situation. These influencers can come from
commercial marketing, or even their peers.
The participation of Halloween can be assessed into the following levels of Maslow’s
hierarchy needs: belonging, esteem, and self-actualization. Halloween is a very social
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celebration. For all ages, it requires intense social interaction in both familiar and unfamiliar
environments. These unfulfilled needs will motivate these consumers to participate in Halloween
in a variety of ways. Some will purchase more materials to address their need of belonging with
friends. Others will focus on a host of events to address their need of esteem. To address the
need of self-actualization some consumers will take spontaneous trips in order to celebrate
Halloween somewhere else.
Consumers will be consuming candy, Halloween decorations, and costumes in an effort
to seek acceptance of others and happiness. Halloween goods are used so that consumers will
feel popular or unique based on their route of consumption. They ultimately seek a way to fulfill
their needs of belonging, esteem, and self. Consumer’s short-term goal is to receive praise or
acceptance from their peers for their level of participation in Halloween. Some will join their
peers on a spontaneous trip to a Halloween celebration in an effort to receive acceptance from
the group which in turn will make them happy about their decision. Others will purchase
pumpkins and candy in an effort to show their peers the effort they have made in hopes to
receive praise from peers and strangers alike. Some consumers will purchase unique costumes
that require costume based make-up in order to receive praise and popularity based on their
dedication to their outfit. In the end, these consumers consume these Halloween products to feel
happiness by addressing any unfulfilled needs in October.
Halloween falls on October 31st
of every year. Originally conceived as a celebration of
the dead, this celebration has been commercialized over the years The National Retail
Foundation’s Retail Insight Center recorded an approximately $7.5 billion of consumer spending
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in 2014 (National Retail Federation, 2014). These seasonal sales fuel the purchasing
environment consumers find themselves in during the months of September and October.
Consumers will be exiting the summer season and start rolling into the fall season with this
celebration. This celebration is first of many holidays that are in the fall and winter quarters.
Marketers will be using this time to start advertising their goods and services relating to
Halloween during the end of September through October. Marketers for social related activities
will start advertising early for Halloween themed events and reward consumers who plan early
for the event with discounts. Other marketers will start advertising their costumes at local retail
outlets in previously vacant spaces in order to sell their popular costumes as early as possible.
The real push to start the Halloween sales is towards the middle of September when the
television advertisements start. This will prepare the consumer to plan their spending
accordingly for Halloween with theme park adventures and costume ideas. You also have the
pumpkin festivities that usually start in October in most schools which further create the
atmosphere of the Halloween season. Finally, when consumers see stores all covered in
Halloween decoration weeks before the season is when retail is in full swing of selling
Halloween goods.
“A reference group is an actual or imaginary individual or group conceived of having
significant relevance upon an individual’s evaluations, aspirations or behavior” (Solomon, 2013,
p. 406). As children grow up they may learn the relevance of Halloween from their family, as
they are taught the traditions and activities that occur around this time of year. Another reference
group is one’s social group and friends. One may be more pressured to participate in this
consumption behavior such as making an extravagant costume to attend a lavish party. The big
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reference group that really pushes what Halloween is supposed to be in our minds is the media
and advertisements. According to Rodgers (1996), “Halloween is a postmodern festival whose
motifs and symbols continually engage mass-produced culture, particularly the
Hollywoodesque”. Retailers are pushing out Halloween decorations earlier and earlier just like
Christmas. When it comes to the media, scary movies and Halloween themed episodes for
television shows is often popular around this time of year. ABC Family even hosts “13 Nights of
Halloween” every year in which a different Halloween movie is played every night leading up to
October 31st
. The media encourages consumers to go all out and celebrate the holiday in many
ways, which is why consumers spend so much money during this holiday. “More and more
Americans celebrate Halloween each year; the number has risen from 52% in 2005 to 65% in
2013” (Strielkowski, 2014, p. 874). Each year the amount of spending on things like decorations,
candy, greeting cards, and costumes has increased (Strielkowski, 2014, p. 873).
This type of influence from reference groups such as social groups and the media can be
related to utilitarian influence and value-expressive influence. Utilitarian influence is when the
individual’s decision to purchase a brand is influenced by the preferences of people with whom
they have social interaction, as well as preferences of family members (Solomon, 2013, p. 407).
This can relate to how individuals choose to consume for Halloween because depending on how
they grew up and whom they hang out with, their ideas of Halloween may differ. Value-
Expressive influence is when one feels the purchase will enhance their image, or it will help
show others what he or she would like to be portrayed as (Solomon, 2013, p. 407). We can relate
this to costumes at Halloween. People may choose costumes based on the image they want to
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portray, or what they want people to think of them. Also, depending on how they are influenced
by the media, what is portrayed as “cool” may influence their behavior as well.
“The study of social comparison theory focuses on how the group influenced an
individual’s opinions and abilities” (Stets & Burke, 2014, p. 39). This theory can potentially play
a role in consumer behavior. When we talk about people who don’t get into the Christmas spirit
we call them a ‘scrooge’. The same can occur with Halloween, if people aren’t willing to be
festive and don’t hand out candy they can get a backlashing from those trying to celebrate the
holiday. In this sense, people may be more likely to participate in this holiday even if they don’t
want to because of the social comparison theory. Some may compare themselves to peers when it
comes time to choose a Halloween costume. They may want to be one thing but if it isn’t
considered ‘cool’ they may opt for something else so that they can be liked by their social
groups.
The family life cycle model is used by marketers to segment consumers in terms of
changes in income, family composition, and the changes in demands placed on this income
(Solomon, 2013, p. 581). Factors to consider in consumer differences during Halloween are “age,
marital status, presence or absence of children, and the ages of the children” (Solomon, 2013, p.
581). The way these different groups celebrate Halloween is likely very different. The types of
products they consume at Halloween as well as the marketing ads that will appeal to them will
differ. To start off we will look at young adults, single and those in relationships. These
individuals are more likely to celebrate Halloween by dressing up and participating in some type
of drinking activity. Whether it be at a Halloween party or a night on the town bar hopping,
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Halloween is a holiday that encourages excessive drinking. According to USA today, “54 million
will party on Halloween, and it is estimated that young adults will spend an average of $87 on
festivities” (Kepple & Durando, 2014). Young people like to be out and about like to socialize
which is why Halloween is such a fun holiday for this age group. Bars and clubs will generally
host Halloween parties and costume contests in which the scariest or sexiest costume wins.
Couples and groups of friends will try and get creative and make costumes or choose costumes
that match.
Once a couple gets older and has kids, their Halloween plans may not include a hangover
unlike in their younger years. Young couples with kids are likely going to spend their money on
costumes for their children, and maybe even for themselves if they are really in the Halloween
spirit. They will spend their time taking the children trick or treating in their neighborhoods.
Parents will form traditions regarding Halloween with their children so their children can grow
up with fond memories of Halloween. Some of these traditions may include going to the
pumpkin patch, haunted houses, and corn mazes. According to USA today, 33 million will visit a
haunted house during the Halloween season (Kepple & Durando, 2014). After picking out the
perfect pumpkin, then you have to carve it into a jack-o-lantern, as carving pumpkins is a popular
tradition for those who celebrate Halloween.
Finally, once the couple is older and has an empty nest, their plans for Halloween
are likely to change again. Depending on the couple, they could go back to their younger days
and attend or plan a Halloween party. If they don’t have kids to take care of then this is a fun
way to celebrate the holiday. According to Solomon (2013), “it’s the senior citizens who have
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become America’s true party animals. The average household headed by a 65-74 year old spends
more on entertainment than does the average household in which the primary wage earner is
under 25” (p. 380-381). After years of working hard and supporting their children, it’s time for
those in this age group to have fun again and be selfish. Instead of attending a party, they may
spend their money on loads of candy for all of the young trick or treaters that come to their door.
Some people really get into the act of decorating as well. Cobwebs, skeletons, spiders, and black
lights are all popular decorative items during the Halloween season. Although people change
through the family-life cycle, some people may choose not to participate in these consumption
behaviors. USA Today states that 8% won’t have candy to hand out to trick or treaters (Kepple &
Durando, 2014). This can be attributed to religious reasons, budgeting reasons, or simply
because they choose not to participate in this activity.
We’ve discussed how various subcultural components such as age and family size
can affect consumer behavior. There are many other factors that can affect this behavior as well
including income, social class, money personalities, and consumer confidence. When
considering income and social class, it is more likely for a family to spend more on Halloween if
they have more disposable income and aren’t on a strict budget. “It appears that Halloween is not
intended just for kids, but there are many adults who are prepared to spend considerable amount
of money just to be ‘in’ and to get scared” (Strielkowki, 2014, p. 874). This ties in with what was
mentioned earlier, it is a holiday for all different age groups. For families that are lower income
and tight with their money, they will probably have to limit what they spend. Most families with
young children, even if on a budget, want their kids to be able to celebrate Halloween and have
the same experiences as other children their age. In this case, they might look into making a
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costume rather than purchasing one from an expensive Halloween store. Costume making is not
only cheaper, but is quite popular around this time, especially because allows for more unique
costumes.
Depending on the consumer and their money personality can determine just how much
an individual will spend on Halloween. If they are more of a spender then they will be excited
for all of the Halloween promotions, which generally start even before the month of October. If
someone is more of a saver, they may be smarter than to fall for all of the marketing efforts to
promote Halloween. A saver may splurge on some candy for the trick or treaters, but likely
won’t have a lavishly decorated home. Consumer confidence is known as consumers’ beliefs
about what the future holds and it reflects how optimistic or pessimistic people can be about the
future of the economy (Solomon, 2013, p. 445). “In 2009 alone, U.S. consumers spent about 5.8
billion dollars on Halloween” (Strielkowski, 2014, p. 873). When the economy is good, people
are more likely to spend more money on Halloween. “Some sources even described the so-called
‘Halloween’ indicator that marks the shift in stock sales after the stagnation during the summer
holidays” (Strielkowski, 2014, p. 873).
There are quite a few status symbols that come to mind when thinking of the
holiday of Halloween. First of all, pumpkins are a symbol that represents the fall season and
Halloween. They are generally purchased with plans to carve them into jack-o-lanterns or other
fun and creative faces or designs. Costumes are another status symbol that represents Halloween.
As years have gone by, Halloween has only become more popular and marketing efforts has
increased. Costume contests are popular where people compete for the scariest, most creative, or
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sexiest costume. Digging deeper into the symbol of costumes is also a sexualized image,
particularly for women, as costumes have been changing over the years. These costumes are
becoming more sexualized and literally are shrinking so that they are covering less of the female
body. “The demand is fueled by the proliferation of sexualized images – how “cool” and
desirable girls and women dress and behave – and the lack of alternatives is the public
imagination and landscape” (Tolman & Brown, 2010). This type of “sexy” image is becoming
more of a status symbol in the world of Halloween, as women try to find the most scandalous
costume to run around town in. Unfortunately this is being displayed to young girls as the
“multi-billion dollar business of costuming girls has increased its supply of sexy offerings”
(Tolman & Brown, 2010). Skeletons, ghosts, and other spooky images are all symbols that
represent the holiday as well. We see these images all over stores prior to Halloween, to entice
people to decorate.
There are many myths that are associated with the holiday of Halloween. The first
is especially discussed among religious groups, mainly Christians. “For most parents, the fear is
the encounter with occultist symbols and the society’s fascination with moral darkness” (Mohler,
2003). Because of the celebration of evil spirits, including the apparent relation to Satan, many
families withdraw from the holiday all together. “Their children do not go trick or treating, they
wear no costumes, and attend no parties related to the holiday” (Mohler, 2003). However, some
argue that this is not necessary saying, “Christians should not surrender the holiday. As
Anderson M. Rearick III relates, ‘I am reluctant to give up what was one of the highlights of my
childhood calendar to the Great Imposter and Chief of Liars for no reason except that some of his
servants claim it as his’” (Mohler, 2003). This myth goes back over a hundred years ago when
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“the great Dutch theologian Hermann Bavinck predicted that the 20th
century would witness a
gigantic conflict of spirits” (Mohler, 2003). His prediction was a big understatement, but this
created a myth that has continued into the 21st
century, and Christian families today are still
stressing over this issue (Mohler, 2003). It has been said that the devil wasn’t even part of the
festival that started Halloween (Santino, 2014). “The origin of Halloween can be traced back to a
pre-Christian Celtic festival called Samhain” (Santino, 2014). On November 1st
was the end of
the harvest for the Celts, and it was the beginning of the New Year. “It was believed that the
souls of the dead mingled among the living at the time” (Santino, 2014). It is because of this that
death, the afterlife, and the supernatural were associated with the fruits of the harvest (Santino,
2014). Sometime after this November 1st
became known as All Saint’s Day or All Hallows Day,
this made the eve of this day, Halloween. “During this time it was a celebration that included
feasts, lighting of candles, and bonfires that welcomed wandering souls” (Santino, 2014). The
devil was not a part of this festival, there were no human sacrifices, and often crops were
sacrificed to honor the dead (Santino, 2014). With that being said, the devil is still a symbol seen
around Halloween, as it has become a popular costume in the past. It is simply out of fun and has
no direct meaning to the “devils’ holiday”. Halloween increasingly belongs to the hyperreal, to a
world of reality-effects where the distinction between the real and the imaginary has become
blurred” (Rogers, 1996, p. 477).
Rituals are expressive, dramatic events that we repeat over time (Solomon, 2013,
p. 349). The rituals of Halloween have advanced over the years, part of which has to do with the
way marketers encourage consumption behavior. In the past, it was celebrated by having
festivals and honoring the dead like mentioned above. Nowadays it is about dressing up,
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partying, scary images, and getting candy. “These efforts to sanitize the carnival spirit melded
well with the general commercialization of Halloween, by the 1920s the modern motifs of the
festival – cats, bats, witches, scarecrows, ghosts, pumpkins – were in full bloom” (Rogers, 1996,
p. 470). Introduced into North America in 1939 was trick-or-treating, which added a new ritual
to the holiday (Rogers, 1996, p. 470). Present day, kids look forward to the night that they get to
go door to door to collect free candy, for practically the entire month of October, if not earlier.
Other such rituals that have become popular are pumpkin carving, going to haunted houses, and
even watching scary movies.
Based on consumer behavior the popularity of Halloween has increasing over the years. It
is safe to assume that we will continue to see an increase of consumption in relation to
Halloween over the next several years. With an increase in the use of social media sites such as
Pinterest “34.2 % of Americans will look for costume inspiration online. Nearly two in five
(19.7%) of those impacted [by the economy] will utilize their creative skills and make their own
costumes rather than buying a new one this Halloween” (Reynolds, 2014, p. 2). We also predict
that with women’s costumes becoming sexier that more women will look to make their
Halloween costumes in the following years or even look to sites such as Pinterest for inspiration
for costumes that are more modest. The cultural context surrounding Halloween has shifted its
focus from children to adults “Halloween is multivocal and because of its ambiguity is able to
serve children, adolescents, and adults in different ways and with different meanings” (Belk,
1990, p. 6). With Halloween being focused on social experiences more people will participate
because of the benefits that can be received from parties, going to haunted attractions, and
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participating in trick or treating related events. Halloween is the perfect time of year to be scared,
dress up, act like a kid again, and even go party.
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