Holiday shopping season can turn the most rational consumers into impulsive shoppers. According to Ying Zeng, an assistant professor of marketing at the Leeds School of Business who studies consumer decision-making, a complex web of psychological triggers can send us into a buying whirlwind.听
Ying Zeng
CU Boulder Today sat down with Zeng to discuss the cognitive biases, social pressures and marketing tactics that drive the impulse to splurge and how consumers can navigate the shopping season without losing their sanity鈥攐r savings.
What influences shape consumer emotions and behaviors during major shopping events like Black Friday or Cyber Monday?
Mental accounting is one factor. Consumers may have different mental "accounts" for spending. Holiday shopping often falls under "one-time big purchases," making consumers less price-sensitive as they may perceive it as a special occasion expense outside of their regular budget. There is also 鈥渇uture discounting.鈥� Consumers tend to downplay the effort required to earn money in the future, justifying overspending by believing they can easily make up the difference later. They may discount the future effort needed and overlook the true cost of their purchases.
There are also emotional aspects. One example is 鈥渟acred purchases.鈥� Events like holiday gatherings hold sentimental value, leading consumers to prioritize the emotional significance over cost-benefit calculations. 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.
Finally, there is social influence. The hype and crowds associated with holiday sales create a fear of missing out. Shoppers may feel pressured to buy, even if they don't need the product, due to the perceived scarcity and social pressure from others.
Following the election, some younger consumers have been posting on social media about 鈥渄oom spending,鈥� particularly on self-care products. Are similar psychological factors at work?
I think "shopping therapy" or cathartic shopping is slightly different from holiday shopping. Shopping therapy refers to using shopping to reduce stress, so it is more prevention-focused, meaning that it helps people recover from negative feelings. Holiday shopping is usually more promotion-focused, 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.
How do retailers tap into consumer psychology to attract shoppers during holiday sales events?
Retailers tend to center holiday sales around discretionary items like electronics, clothing and fashion. These products appeal to consumers' desire for an enhanced lifestyle, so using social media and social influence is effective for promotion.
Retailers leverage sales and promotions during peak demand periods, often at the end of the month or year when revenue pressure is high. By creating a sense of urgency and scarcity through limited-time offers, they tap into consumer psychology to drive sales.
What strategies can you recommend to help consumers make more thoughtful and informed decisions during major shopping events?
Make future pain present. Visualize the effort required to earn the money for a purchase by considering how many hours or days of work it would take. Shift your mindset from a future perspective to a present one to better assess the true cost.
Also ask yourself if you would still want the product without the social pressure or hype surrounding it. Consider whether you truly desire the item or if it's merely a result of external influence.
