Budgeting | Personal Finance | Article
Taming the Impulsive Shopper in You
by The Simple Sum | 22 Dec 2020 | 6 mins read

This article isnât going to tell you how to shop mindfully.
Thereâs already plenty of great advice out there (if youâve never seen it, Googleâs your friend), so weâll do things a little differently this time.
Instead of giving you tips like âmake a mindful shopping listâ, weâre going to look at concepts on the human psyche, consumer behavior and marketing practices.
How brands use psychological tactics and disciplines such as âneuromarketingâ that take advantage of our blind spots to enhance their bottom lines.
Youâll find some tips here and there, but ultimately this is a list of things to bear in mind so you can approach online shopping as a better-informed consumer.
Anticipation and Digital Dopamine
Letâs imagine for a blissful second youâre the newly-minted owner of Bruneiâs first ever Uniqlo outlet. Youâre going to make it the best retail experience the country has ever seen. Collaborations with local designers, in-store catwalks, steep discounts. Youâve checked all the boxes.
Or have you?
A study has shown that dopamine, the chemical messenger in our brains that reinforces pleasurable sensations, is released when youâre anticipating a reward â much more than when youâre receiving it.
A survey conducted on shoppers from the US, UK, Brazil, and China in 2014 found more than two-thirds of the shoppers were âmore excited when their online purchases arrive in the mail than when they buy things in storeâ.
Which is why for big retailers, the online experience is just as important â if not more â than the traditional brick-and-mortar spectacle. Itâs the act of waiting, and herein lies the anticipating, that can make online shopping more exciting than shopping in-store.
Online shopping is addictive because itâs designed to be, much like our smartphones and favorite social media networks. Countless amounts of money have gone into R&D to increase our reliance on these products and platforms, and their success depends on us returning.
The 4 Types of Impulse Buys
For many online retailers, impulse buys make up a considerable amount of sales. We make shopping lists and vows to stick to the budget, but we still succumb to unplanned spending.
Letâs take a look at the four types of impulse purchases and some of the triggers that are put in place to oil the wheels:
1. Pure impulse: an unplanned ânoveltyâ purchase, like buying a pair of cheap hoop earrings âbecause they look cuteâ while casually browsing a fashion store.
2. Reminder impulse: seeing a product and remembering that you need it, like buying shaving cream at checkout to go with the razor youâre buying.
3. Suggestive impulse: seeing a product and visualising a need for it, like buying a $50 mascara after seeing it listed in the ârecommendedâ section.
4. Planned impulse: taking up a promotional offer with an unplanned purchase, like adding an item to your basket to reach the total needed for free shipping.
Successful ecommerce websites are designed in such a way that products, promotions, and complementary product-pairings are well within the line of sight as you browse, increasing the likelihood of you adding it to your cart.
For those of us who consider shopping a pastime, online retailers target our demographic by using âupbeatâ and âaction-orientedâ copy to appear more engaging. Youâll notice clothing or fashion-centric sites using phrases like âComplete Your Lookâ, which imply your purchase wouldnât be complete without the complementary product on offer.
Spontaneous as they may be, but impulse purchases are assisted by a great deal of behind-the-scenes engineering.
The Sweet Science of Savoring
Itâs always more painful to pay with cash as opposed to paying via cashless means, whether itâs online payments or via credit card. Thereâs something about holding something physical money in our hands that makes us feel more connected to it.
Imagine stepping into a home goods store. A plush sofa has caught our attention and our five senses begin to kick in. How does it feel when you touch it? How does it look? What does it smell like?
If it feels, looks and smells good, we feel a sense of euphoria, and we feel compelled to buy it, whether or not we need it or itâs within our budget.
Try observing the sensations your body feels when it gets swept up in these euphoric moments, and youâll notice theyâre just that â sensations.
At risk of sounding like a mindfulness guru, exercises that involve paying attention to sensations and not acting on them have been proven to work, such as the one where smelling food can satisfy hunger cravings.Â
TL;DR â shop physically as much as you can, and online only when you need to.
The Frequency Illusion â Is It Really An Illusion?
One of the objectives of neuromarketing is to find out whether you would pay attention to an ad. Are you responding emotionally when your attention shifts to an ad while youâre scrolling through Instagram Stories?
The answer to this may indicate your buying intent. It will help the marketing machine determine the next step to take â whether itâs to push another ad in a different form, send you a more compelling newsletter, or a highly-targeted promo tailored to your customer journey in the sales funnel â nudging you closer to clicking âBuyâ.
But how does all this tie in to confirmation bias?
If youâve ever felt an ad following you, showing up on your favourite news website first and then on Instagram a few days later, itâs because it is.
âAd retargetingâ is a common marketing tactic where companies âretargetâ users who have already seen their products on a website, but havenât made the purchase. These companies will show the user the same products again and again, pushing ads that trail them as they flit between news websites, social media and YouTube.
For most of us this is downright annoying, like a fly that keeps buzzing around your head when youâre trying to enjoy dinner. For brands on the other hand, âremarketingâ is a godsend, and they do this for one reason â behavioural reinforcement. The belief is that if youâre exposed to the same product again and again, you might just give in and buy it.
This leads us to the Baader-Meinhof Phenomenon, also known as the frequency illusion, where you see something once and all of a sudden itâs everywhere.
See where this is going?
It may seem paradoxical, but itâs just another example that illustrates how psychology and marketing go hand-in-hand to make online shopping much, much more irresistible than weâd want it to be.