According to a report released by the National Retail Federation, this year retailers will fare slightly better this holiday season despite the economy’s slow recovery.

Iowa State College of Business assistant professor of marketing Laura Smarandescu said while consumers may be more willing to spend money this year, Americans tend to be somewhat less practical.

Smarandescu researches consumer decision-making. She said this year gift cards and clothing will be the most requested holiday items. However, she said people are starting to stray from just buying necessities and are now starting to make more “pleasurable” purchases like jewelry, as sales are up 3 percent this year.

Smarandescu has also found in her research that people focus on brand names. They are more likely to trust, and therefore buy, a brand name they recognize because they think they will be guaranteed a high-quality product.

The NRF survey also found that more consumers will take advantage of holiday sales to buy for themselves this year. This correlates with more deals being offered online, as Smarandescu says online shopping often results in more impulse buys than shopping in a store.

Tahira Hira, professor of personal finance and consumer economics, offers these tips for budget-friendly shopping this season:

 

1. Set a dollar limit.
2. Avoid impulse buys.
3. Purchase based on a plan, not on emotions or desires.
4. Watch how much you’re putting on credit cards; use cash, too.