Why Nostalgia Sells: Reducing Price Sensitivity Through Emotional Connections

In the competitive world of indulgence brands—snacks, sweets, alcohol, and other treats—success isn’t just about products; it’s about selling experiences and emotions that make consumers feel good about their choices. That’s where behavioral science shines. One particularly powerful force is nostalgia, which can transform consumer preferences in compelling ways.

Nostalgia in brands and marketing has seen a resurgence in popularity. The good news for brands is that innovation and nostalgia are not at odds — take McDonald’s spin-off CosMc’s, our client Fizz District’s branding which ties into the Soda Jerk of the 50s, or the comeback of Dunkaroos. Tapping into nostalgia involves reimagining traditional brands and experiences for today’s audiences, and as INC put it, we are in the midst of a “nostalgia branding revolution.”

Source: General Mills

Research shows that nostalgia can make consumers feel safer, happier, and more connected. But here’s an added bonus: when emotions like nostalgia are in play, consumers become less sensitive to price.

Why? When consumers associate a product with cherished memories—like Oreo cookies dunked in milk after school—price fades into the background, overtaken by the warmth of reliving those moments. This phenomenon explains why premium brands like Häagen-Dazs or Godiva can charge more. They’re not just selling sweets; they’re selling nostalgia-infused experiences.

As Dr. Jannine Lasaleta explains, nostalgic events often evoke memories shared with loved ones, boosting both social connectedness and self-esteem. Nostalgia creates a bridge to the past, adding rich emotional value that can make indulgent treats feel priceless.

At Method1, we help clients discover whether nostalgia can enhance their brand story, guiding them to tap into this powerful emotional lever to drive engagement and growth. Nostalgia can enrich a brand’s connection to consumers, whether it’s a long-standing favorite or a newcomer reimagining classic flavors, looks, or experiences. By marrying indulgence with nostalgia, brands not only strengthen consumer loyalty but justify premium pricing—turning a simple treat into a memorable, feel-good experience that transcends generations.