Black Friday is coming up– so its the perfect time to talk about the Psychology of Sales. Let’s take a look at how our brain reacts to Black Friday and sales in general. Being aware can give you an opportunity to change your choices.
1) FOMO
How many times have you made a purchase from the “fear of missing out” mindset? “It won’t be here later.” “They will run out of my size.” “I am going to be the only one in my friend group without it.” FOMO marketing takes advantage of our human instincts to be a part of something and how we have evolved to not miss out on opportunities.
“Most people don’t like to lose out on something, making them motivated to take action. Items that are in short supply or perceived in such a way are viewed as more valuable while using emotions like anticipation and anxiety to stimulate a sense of urgency that can lead to more impulsive actions.” – this is from a Mailchimp article advising business owners on how to manipulate their customers.
2) How A Deal Makes Us Feel
When we buy something we perceive as a deal we feel accomplished. Its like we won, we succeeded at acquiring the resource, and are then rewarded with a dopamine hit. But the dopamine hit is fleeting. Often, we don’t feel as good as we imagined we would after we have the thing, but the money is gone.
3) Gamification
Cyber Monday has turned into cyber November, and gamification is used to lure us in. “Gamification involves using game-like techniques – such as competitions, leaderboards, points, badges, and instant notifications – to positively reinforce behavior in typically nongame circumstances.”
Last year, there was a TV we wanted, and we had to “request an invite” from Amazon in order to be eligible to buy the TV. Did that make me want it more? On a subconscious level, yes.
These techniques are used to engage us, and ignite our sense of competition.
4) Relieving Stress
The holidays can be stressful. You may be tempted to blow off steam from the tension or disappointment of Thanksgiving dinner with emotional spending.
So the take-away is this:
Try not to get swept up in mindless Black Friday shopping. Taking advantage of lower prices is great, as long as its done with intention, a budget, and a list to keep you focused–especially if you have a lot of credit card debt, or are living pay check to pay check.
Whatever you choose, just keep in mind how your brain may be motivated to engage with sales, so you can get yourself back on track.
A client recently shared with me that their relationship to gift giving has changed since we started working together. She realized the amount of money she was spending was not quite as important as she thought. Her friends and family really appreciated smaller, less expensive gifts that had thought behind them.
Happy Holiday Season!
