People are less like to cut costs when it comes to sentimental purchases for loved ones, a new study has found.

Research from the University of Colorado Boulder suggests that expensive gift-buying directly correlates to the genuine love you have for the intended recipient.

The study, which involved 245 participants, looked at how people responded when faced with purchasing everything from engagement rings to urns.

When presented with a choice of two engagement rings – one with a bigger carat than the other – participants at a wedding show nearly always opted for the pricier-looking of the two.

In another test, people had to choose a container for the ashes of a loved one or the storage of a grandfather clock.

They were far less inclined to research cheaper options when it came to the more "sacred" decision regarding the urn.

Even when it comes to cupcakes, people were less willing to haggle over the price if it was bought for a loved one, as opposed to someone they know less well.

The chief author of the study, Peter McGraw, said:

"People's buying behaviour changes when they're making purchases out of love because it feels wrong to engage in cost-saving measures.

"People abandon cost-saving measures when it comes to sentimental buys because they want to avoid having to decide what is the right amount of money to spend on a loving relationship".

Researchers concluded that if people were more aware of the psychology behind their behaviour, they would be less likely to fall into the trap and have an increased awareness of when businesses are exploiting them by bumping up the price of "symbolic items" for profit.

McGraw said: "It's important to be aware of this tendency not to seek cost savings because, over a lifetime, consumers make many purchases that are symbolic of love whether for weddings, funerals, birthdays, anniversaries and even potlucks.

"The loss of savings can really add up and put people in compromising financial situations".