Why are some people overpaying for aluminum foil?

According to InfoScout.com, a national dollar store chain has identified Gen Z's (under 24) and Baby Boomers (55-64) as their primary customers.

The article then goes on to point out that while aluminum foil is only a dollar at the dollar store, the box you buy contains 27 square feet of product.

In contrast, at a well known big box store, you can get 75 feet of foil for $2.08.

That means that you are paying 3.7 cents per square foot at the dollar store, versus 2.7 cents per square foot at the big box store.  A premium of 37%.

Interestingly enough, when this fact was pointed out to the dollar store fan (a Boomer) and then he was asked where he would buy his foil, he responded "At the dollar store."  When asked why, he replied "Because it is a dollar."

What's going on here?  What have we learned about consumer behavior that can explain going to the dollar store in the first place?  Why are Gen Z's and Boomers more likely to shop at the dollar store?  Why did the person keep going to the store despite the evidence presented?  Would another approach have been more successful in persuading him to shop elsewhere?  Which one and why?

Stone, J. (2017, November 7)  Boomers As Value-based Consumers.  mediapost.com.  Retrieved November 8, 2017, from

https://www.mediapost.com/publications/article/309858/boomers-as-value-based-consumers.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=106027&hashid=qPjrjs2d4CzuoIyymSYheeVOsxs

"Brandless" may succeed, but brands are here to stay.

Last month a new online retailer named "Brandless" was launched.  Its concept is similar to that of the Dollar Shave Club.  Everything on the site is $3.00.  Kind of like the Dollar Stores, but 3x as much.  Still a significant savings over the prices that people typically pay for branded items. (Gilbertsen, 2017)

So the question is - why do people pay more for brand names?

The answer is that all decisions are emotional.  And we bond with brands the same way that we bond with people.  So we are willing to pay a bit more for the detergent that our moms used because the scent brings back good memories of our childhood. (Murray, 2013)

On the other hand, private label product sales increased 24.6% from 2009- 2014 (Blair, 2016), and many Millennials are strapped for cash.  They have also shown a propensity for buying everything online, so "Brandless" may be their cup of tea.  But I don't see them giving up all their brand names - just look at their love for Apple.

Gilbertsen, C. (2017, August 3)  Is The Future Brandless?  mediapost.com.  Retrieved August 4, 2017, from

https://www.mediapost.com/publications/article/305242/is-the-future-brandless.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=104498&hashid=qPjrjs2d4CzuoIyymSYheeVOsxs

Murray, P. (2013, February 26)  How Emotions Influence What We Buy.  psychologytoday.com.  Retrieved August 4, 2017, from

https://www.psychologytoday.com/blog/inside-the-consumer-mind/201302/how-emotions-influence-what-we-buy

Blair, W. (2016, December 8) Private Label Growth Trends Drive Increased M&A Interest.  williamblair.com.  Retrieved August 4, 2017, from

https://www.williamblair.com/News-Items/2016/December/08/Private-Label-Growth-Trends-Drive-Increased-MA-Interest.aspx