With Black Friday approaching, the holiday shopping frenzy is in full swing. Retailers are pulling out all the stops to capitalize on the season of gift giving and consumer culture. But why is it that shoppers continue to flock online or to stores for sales? As marketing professor Mark Cleveland explains, the frenzy around holiday shopping is very much by design.
Cleveland is the Dancap Private Equity Chair in Consumer Behaviour and spoke with Western News about pressures consumers feel this time of year and what can be done to protect against overconsumption.
Western News: What makes events like Black Friday both compelling and overwhelming?
Mark Cleveland: Consumers have become conditioned to expect great deals on days like Black Friday and Boxing Day, and these events generate several psychological triggers that impact shoppers. The idea of steep time limits – a very limited sale – activates what’s called loss aversion, or the fear of missing out. Retailers amplify this with cues, such as door busters or “while supplies last” signs. These heighten arousal and reduce thoughtful deliberation of a purchase.
There are also social pressures at play. The volume of ads and social media posts normalizes heavy spending as a cultural event. Witnessing the sheer volume of crowds and promotions leads to sensory overload, which further strains a person’s cognitive capacity, increasing the likelihood of an impulse buy.
Professor Mark Cleveland
What are some strategies that retailers use and why do they work so well?
MC: Retailers are very skilled at manipulating people’s impressions of what constitutes a good deal. Individuals might respond very strongly when they see a regular price alongside a deeply discounted price. What people might not realize is that sometimes the so-called regular price is inflated or was raised just before the sales period. The sale is a way to disguise the price increase.
On top of that, retailers will hint at scarcity. The idea of item limits per person tends to get people to buy more than they need. Scarcity, exclusivity and limited-time deals create a tension that leads to a sense of urgency and not wanting to missing out.
Other strategies include how a store is laid out. Putting the most desired items at the back forces shoppers to stay in stores longer, and atmospheric cues like holiday music and decorations influence shoppers by reminding them of the gift giving season, reinforcing consumer culture.
Are there social pressures at play during shopping events like Black Friday?
MC: There are competitive dynamics that come into play. Some people are really thrilled by the chase or the idea they’re beating out other consumers to the price. That’s where you’ll see the famous videos of frenzy and people going wild over flat-screen TVs. Those images in and of themselves can reinforce the idea of missing out and wanting to jump on the bandwagon.
Then there are the upward and downward social comparisons people engage in. People want to keep up with their peers or feel a pressure to purchase more status-signalling goods – the type of branded luxury goods that help reinforce identity and social standing.
Why are people more vulnerable this time of year to buying more than they need?
MC: Some of it comes down to consumer knowledge, but a lot of it is tied to personality traits. People who are more impulsive or materialistic are more susceptible to interpersonal influence – the importance of what other people think – which can impact consumerism.
There are also people feeling emotionally distressed, or, believe it or not, financially distressed, who engage in retail therapy as a coping mechanism to feel better about themselves. There’s emerging evidence that people who are heavy social media users are more inclined to consumerism.
What role does gift giving have in consumer culture?
MC: Gift giving is a real form of what we call symbolic communication between giver and recipient, and with that comes a lot of pressures. You’re thinking about what the other person may think of the gift. Gifts are often opened in front of others; how are people going to view your gift? Did you come across as cheap? We are highly concerned about the reactions of others.
In that way, gift giving is important for establishing, maintaining and strengthening relationships among people. In some cases, giving a bad gift is an intentional signal of severing a relationship. We communicate a lot through what we give, and retailers know how to use these pressures.
What tips do you have for shoppers during this time of year?
MC: Give yourself some time to think about what you are purchasing. Walk around the store before putting that item in your cart, and probably a lot of items won’t make it in there. Using cash instead of cards is another good tactic. As a sort of forced budget, you have to actually open your wallet and count the money. The loss aversion kicks in, but for your money instead of products.
Being informed about the pressures being intentionally employed against you is incredibly helpful for avoiding those impulse buys.
Finally, the simplest advice is usually the best: make a list, say how much you want to spend for each person and then keep a running total. It takes work, but I guarantee people make better decisions.
