by India Jacobs, Leuphana University of Lüneburg, Germany.
Have you ever wondered why you’re always being drawn to discounts and participate in Black Friday often despite prior intentions to avoid unnecessary spending? Black Friday always leaves consumers in distress, especially the days afterwards when they’re fully getting the grasp of what they did, buying items they probably normally wouldn’t have bought. After years of falling for the same traps, the recipe to less shopping doesn’t lie in self-restraint, but in understanding and identifying the traps.
All you need to survive the next Black Friday is an insight into how modern marketing utilizes cognitive biases to push people to buy more than they need. Following is a foolproof recipe to prevent impulse buys on Black Friday:
1. Anchoring bias:
First of all, the anchoring bias, which uses the lack of prior knowledge to present information in a beneficial way. Applied, the anchoring bias looks like this: the company presents two prices, the original one crossed out and the new price with discount. This contrast creates the illusion of making a good deal, without thinking about whether they would have bought the item without the original one being shown. Tip: Next time, ask yourself whether you would have bought it if you wouldn’t have seen the original price.
2. Urgency:
Second, the principle of FOMO, which creates an urgency to buy items when they are labeled as limited or special editions. Nobody wants to have FOMO, so when the item is a limited edition and there are only a few stocks left, the consumer gets the urgency to buy it. When reading those labels, our brain is triggered to use mental shortcuts instead of rationally deciding if we really need that item. Tip: Real needs can wait at least 24 hours, that way you can escape the pressure and only shop what you really need.
3, Scarcity:
Third, the loss aversion of humans, highlighting the fear of losing something as the strongest impulse to act. When individuals fear losing, they react and that’s what makes it such a strong marketing technique. Companies combine loss aversion with the scarcity principle, giving something more value based on information, to trigger those motivations. For instance, through showing how many stocks are left and a friendly advice to hurry up before it’s gone. Tip: Try to think the other way around, instead of losing think about gaining control over your money.
4. Framing:
Forth, the framing bias which is playing with the representation of information in a gaining or losing way. Individuals have preferences in how a problem is framed, shifting the outcome to benefit the company. This can look like “Don’t miss out on $200 savings!” or “Save $200 today!”, speaking to different individuals. Tip: Try to rephrase the offer in a neutral way to see the real value behind it.
5. Social Proof:
Last but not least, the social proof theory, stating that individuals tend to follow the behavior of the majority. In marketing this is used by showing customer ratings or influencers promoting the items. Tip: Remember that not everything is good just because many people have it.
Hopefully, next time Black Friday comes, you’re prepared and only buy what you really want.
