Photo credit: Axios
There are reasons why it’s hard to resist the holiday-shopping hype.
According to Psychology Today:
1. Black Friday sales trigger emotions, not logic, creating a frenzy that’s hard to resist.
2. Flashy deals can be deceiving. Dynamic pricing often means “bargains” aren’t as good as they seem.
3. The endowment effect makes it harder to let go of items in our carts, even before we purchase them.
Black Friday has a unique way of sparking behaviours that seem completely irrational. But these reactions aren’t random; they’re deeply rooted in human psychology. This annual shopping event can make millions of people act as if snagging a discounted gadget is a matter of life and death for the following reasons.
Black Friday deals are often not the best discounts of the year. Many companies use algorithm-driven dynamic pricing based on consumer data, which means that some items may be priced similarly – or even lower – during other sales throughout the year. However, year after year, people eagerly line up outside stores at dawn or crash e-commerce servers with frantic clicks. This isn’t about logic, it’s about emotion. Black Friday isn’t just a shopping event, it’s a psychological battleground where our instincts take over.
When a person, for example, is eyeing a limited-edition smartwatch and there are only “two left in stock, ” their heart races, their palms sweat, and they click “Buy Now” faster than they can think. Marketers carefully engineer this ambiguous mix of excitement and anxiety.
Scarcity cues – like low stock warnings and countdown timers – create urgency, triggering people’s fear of missing out (FOMO). ROMO isn’t just a catchy acronym; it’s a psychological response rooted in loss aversion. It describes how the pain of losing an opportunity is far more powerful than the joy of gaining something.
However, there’s more at play here. Black Friday also taps into people’s desire to feel victorious. Grabbing a deal feels like winning a game – a sentiment amplified by the festive atmosphere, crowds, and competitive dynamics.
People are not just buying products but “beating” others to a prize.
The scarcity principle posits that people assign more value to less available opportunities. On Black Friday, retailers exploit this by offering “limited time” deals and “exclusive” products. When people perceive something as scarce, their desire to obtain it intensifies. This urgency often leads to impulsive buying decisions, as they fear that delaying might result in missing out entirely.
The concept of social proof suggests that individuals look to others’ behaviour to determine their actions. During Black Friday, the sight of crowded stores, long lines, and social media posts highlighting purchases creates a bandwagon effect. This collective behaviour reinforces the decision to join in, even if they hadn’t planned to shop initially.
According to reference price theory, consumers evaluate prices based on an internal “reference price” – a standard they believe is fair. Retailers manipulate this by displaying inflated original prices alongside discounted ones. Even if the final price isn’t a genuine bargain, the contrast makes the discount more substantial, compelling people to make a purchase they might otherwise skip.
Emotions play a pivotal role in people’s purchasing decisions. Decades of consumer research have shown that emotional responses can significantly influence consumer behaviour. The festive atmosphere at Black Friday—complete with holiday music, vibrant displays, and the thrill of competition—elicits strong emotional reactions. These emotions can override regional thinking, leading to purchases driven by excitement rather than necessity.
When a person adds an item to their cart – whether it’s sitting in a physical shopping cart or resting in the digital recesses of an online cart – it starts to feel like it’s already theirs. Psychologists call this te endowment effect, and it’s why letting go becomes so much harder.
As the adrenaline fades and people unpack their Black Friday hauls, many feel a twinge of regret. Did they really need that extra gadget? Was tye discount worth the stress?
Emotions, not logic, often guide people’s decisions. But it also offers an opportunity for deep reflection
😂true. Even though some of us ‘real’ bargain hunters can’t be seen among the rushing crowds.
Happy holidays!