How to not fall victim to 'holiday deals'
Nov 14, 2024
(COLORADO) — The Holidays are almost here and with that, plenty of stores are releasing their Black Friday and Cyber Monday deals even earlier in the month, but how does holiday shopping affect the brain?
Assistant professor at the University of Colorado Ying Zeng says a web of psychological triggers such as sentimental value or even fear of missing out (FOMO) can send people into a buying whirlwind. According to Zeng, the holiday shopping season can turn the most rational consumers into impulsive shoppers
"Retailers leverage sales and promotions during peak demand periods, often at the end of the month or year when revenue pressure is high," said Zeng. "By creating a sense of urgency and scarcity through limited-time offers, they tap into consumer psychology to drive sales."
Shopping for the holidays often falls under "one-time big purchase" which makes consumers less price-sensitive as they perceive it as a special occasion outside of their regular budget. Some may even downplay the effort required to earn money in the future, justifying overspending by believing they can make it up later.
Social influence also plays a part in sending consumers into a shopping frenzy. The hype and crows associated with holiday sales create FOMO, with some even feeling pressured to buy a product although they do not need it "due to the perceived scarcity and social pressure from others."
Retailers tap into consumer psychology to attract shoppers by using items like electronics, clothing, and fashion and centering sales on those products. Zeng says these products appeal to shoppers' desire for an 'enhanced lifestyle', therefore using social media and influence is effective for getting the word out.
"Holiday shopping is usually more promotion-focused," said Zeng. "Meaning that the goal is to build a more desired lifestyle or to create better memories during holidays. It helps create positive feelings beyond the status quo."
In addition, holiday gatherings hold sentimental value and often lead shoppers to prioritize emotional significance over cost. "They may view spending on these events as an expression of love or family bonding that transcends monetary value and is thus less sensitive to overspending," Zeng explained.
Now, how do you not fall victim to these shopping tactics? Zeng says to make the future pain present.
Ask yourself if you would still want the product without the hype surrounding it, and consider if it is truly something you want or merely a result of external influence. Other advice Zeng offered included assessing the true cost of the item and visualizing the effort it required to earn the money and how long it would take to make it back.
Holiday shopping deals have already kicked off across the country, as a reminder, Black Friday lands on Friday, Nov. 29 and Cyber Monday will take place on Monday, Dec. 2.