In today's consumer-driven world, impulse buying has become a ubiquitous phenomenon, affecting people of all ages and backgrounds. We've all experienced that irresistible urge to purchase something unplanned when strolling through a shopping mall or scrolling through an online store. But what goes on inside our brains when we make these spontaneous decisions to buy?
Impulse buying refers to the act of making unplanned purchases, often driven by sudden and intense urges. It can range from grabbing a chocolate at the supermarket checkout to splurging on an expensive gadget. Impulse buying is a widespread phenomenon, and studies have shown that about 62% of purchases are impulsive with online shoppers having a higher likelihood of being impulsive.
There are various kinds of factors that make people more susceptible to buy things impulsively. Interestingly, a study has shown that offline shopping, or traditional brick-and-mortar shopping, might be more conducive to impulsive decisions compared to online shopping. The research suggests that nearly 30% of offline shoppers and 25% of online shoppers consider themselves impulsive buyers. The appeal of in-store shopping lies in its sensory experience, offering a hedonistic value that online shopping often lacks. The method of payment can also influence your willingness to pay with multiple studies showing that using a credit card can make you spend more money compared to using physical cash.
It is not just the physical environment that affects us; research shows that dopamine plays a pivotal role in impulse buying as well. As we contemplate a spontaneous purchase, dopamine levels surge in anticipation of the pleasure it will bring. This dopamine rush can override our rational decision-making processes, making it harder to resist the urge to buy. It's akin to a neurological tug-of-war between instant gratification and long-term financial prudence. In addition to this, as we continue to indulge in such spontaneous purchases, we reinforce this behavior as the brain forms an association between the purchase and the subsequent pleasure or gratification it brings. This can then lead to forming a habit or addiction.
As mentioned earlier, impulsive behavior refers to a spontaneous act that is not rooted in rational or extensive thought. Decision-making is thus limited during such acts. The frontal lobe of the brain is responsible for executive functions such as decision-making, planning, impulse control, etc. Specifically, the prefrontal cortex is responsible for decision-making and has been implicated in impulse control as well. In addition to this, the prefrontal cortex is also a part of the brain’s dopamine reward system. It is important to note that the frontal lobe’s effectiveness in regulating this impulsivity can differ from person to person and may be compromised by fatigue, stress, injury or even certain neurological conditions.
Impulsive behaviors often find their roots in a multitude of factors - cognitive limitations, unexpected needs, visual stimuli, and the persuasive power of advertising. Although the economic model of the consistently rational "homo economicus" once prevailed where humans were theorized to be consumers that strived for utility with the least possible cost, extensive research now tells us a different story. Emotions are key drivers of our behavior, a fact well understood by multinational corporations.
Marketers have long recognized this and use emotional appeals in advertising to tap into consumers' desires, fears, and aspirations. Emotions like excitement, desire, and fear of missing out (FOMO) can drive impulsive purchases. In the context of impulse buying, loss aversion is seen in the fear of missing out (FOMO). Loss aversion is a cognitive bias that suggests that people tend to strongly prefer avoiding losses over acquiring equivalent gains. Creating a sense of urgency surrounding the purchase of an item is another similar marketing technique that many online retailing websites use. A study by researchers from Princeton University cataloged such strategies that marketers use to get people to make purchases. They include strategies such as inducing scarcity, ‘confirmsharing’, forced enrollment to newsletters, etc.
Similar to the functioning of emotions, stress can also be a powerful trigger that gets a person to spend money. Under stressful circumstances, our brain's rational decision-making processes often take a back seat, and emotional impulses take over. In a fast-paced world, people face stressful situations daily and for some, the control they get by spending money or the pleasure obtained through an impulse buy might alleviate some of the stress they feel. This presents an opportunity for marketing teams to exploit our innate needs, transcending cultural boundaries, and create a sense of urgency that prompts us to buy more.
Despite these strategies aimed at luring us into impulsive buying, there are steps one can take to resist the temptation:
Create a shopping list beforehand and stick to it.
Employing strategic planning and mindfulness can help regain control over our spending habits.
Pay by cash
Credit cards tend to have a high spending limit whereas one can only carry a limited amount of cash around thereby hindering the urge to buy impulsively. Unlinking your card from online shopping websites would also help as it makes it more tedious when you do have to check out and also gives you time to rethink your purchase.
Take stock of your emotions
Avoid shopping while experiencing duress or other negative emotions as these are likely to make you indulge in impulsive shopping.
It has become evident that the functioning of the impulsive mind is intricate and that it responds to a myriad of situations and triggers in different ways. It is not always rational, rather its decisions are strongly coloured by the influence of many psychological and social factors. These findings can be put to use by corporations for their own good. However, these are means we can employ to not fall prey to their deceitful and exploitative tactics.
One could even watch the light-hearted movie, ‘Confessions of a Shopaholic’ to gather some inspiration and watch the above mentioned at play!
Alison Fernandes and Bhavleen Singh
