After Thanksgiving in North America (this year on November 27th) comes Black Friday, also known as Black Shopping Festival. Many businesses will hold large-scale promotional activities during this period, and people take the opportunity to go all out in shopping, enjoying rare discounts. But what effect does this have on our brains?
Tijl Grootswagers, a senior researcher in cognitive neuroscience at Western Sydney University in Australia, and Daniel Feuerriegel, Director of the Prediction and Decision Lab at the University of Melbourne, discussed this issue in an article on The Conversation website.
These scholars point out that Black Friday is not just a one-day (now extended to over two weeks) discount event; it is a carefully planned psychological event designed to leverage the decision-making mechanisms of our brains. Understanding some of the scientific principles behind this process can help us identify when we are overspending beyond our expectations.
When we face choices, such as whether to buy a new television, our brains weigh the evidence for and against each option. We compare prices, features, ratings, and our financial capabilities. Once we feel we have enough information, we make a decision. This process takes time, and the more important the decision, the more evidence we gather.
But when under pressure, the situation changes. Our brains lower the threshold of information needed to make a decision. In other words, time pressure makes us decide more quickly, with less evidence required.
This is very useful when quick action is needed. For example, if a spider lands on your arm, you won’t calmly weigh the pros and cons to shoo it away. However, in the promotional activities of Black Friday, the same rapid decision-making process could lead to impulsive spending.
Black Friday promotions not only capitalize on “urgency” but also on “scarcity”. We know that the promotional period is short, and many people will be shopping at the same time. This creates a strong sense of competition – if we don’t act quickly, we might miss out.
Under time pressure, our brains try to find shortcuts to help us evaluate options, such as checking how many people are browsing a particular item. However, such information may not be as useful as details like warranties, product quality, or long-term value.
The scarcity of items also deters us from delving further into understanding the product. If an item appears to be running out, spending time comparing prices or reading reviews may feel risky as the item might be sold out while we contemplate.
Our brains prefer predictable outcomes and seek to avoid unnecessary risks, so we may not seek out more information but rather take action swiftly.
Retailers manufacture a sense of urgency on Black Friday. Timers, prompts of “limited stock”, and banners proclaiming “only today” are used to simulate real scarcity, compelling consumers’ brains to work quickly, making rapid decisions.
Once this urgency sets in, rational thinking takes a back seat. We no longer ask ourselves, “Do I really need this?” Instead, we start thinking, “What if I miss out?”
This thought pattern can lead you to buy items you may not actually need, like a slightly better TV than the one you already own.
Black Friday may feel like a money-saving extravaganza, but it’s actually an advanced workshop in behavior and brain science. Each countdown timer, each pop-up window, each “only 3 items left” notification is meticulously designed to grab your attention and shorten your decision-making time.
Grootswagers and Feuerriegel suggest that understanding how these strategies work can help you take control and prevent overspending:
– Plan ahead before shopping pressure kicks in – research what you really need before the promotional season starts and gather more information. This will help you make decisions when time is tight.
– Set a budget and check it regularly – decide how much you are willing to spend and remind yourself during shopping. This helps counteract the “scarcity effect” and lets your brain realize there are other constraints.
– Pause before making a purchase – when feeling pressured, give yourself a minute. Taking a break will help your brain relax from excitement.
– Ask yourself, “Would I buy this at full price?” This can help your brain focus on the actual value of the product.
These scholars conclude that enjoying discounts is fine, but when caught up in excitement, consider what your brain is thinking and who truly benefits.
It’s worth noting that aside from Black Friday, businesses also employ tactics on regular days to induce impulsive shopping and boost their revenue.
Gary Reichmuth, Associate Professor at the McCombs School of Business at the University of Texas at Austin, previously told The Huffington Post that one method retailers use to create demand is appealing to consumers’ emotions, including employing discounts or low stock notifications to instill urgency or a fear of missing out, prompting immediate responses and purchases.
To incite impulsive buying, retailers frequently use strategies like discounts, low stock notifications, upselling, and cart notifications.