Consumerism - Why People Buy

There are many reasons why people buy which may include being seduced by marketing strategies, wanting to be part of a community which is usually encouraged through social media and programs, to increase points to have something else you want or to manage emotions which can also be called retail therapy .   

Understanding why people spend money can help manage the spending habits, which is especially helpful at a time during high inflation.   

Below are a few reasons why people buy: 

Cognitive bias - not thinking rationally when spending so checking in with your thoughts can be helpful.  Questions to ask yourself may include: what emotions are driving my thoughts?  Do I really need this or do I just want it?  What will my life be like if I didn't buy this item?   Can I wait and delay gratification?  

Encouraged by price - thinking this is a bargain and you don't want to miss out.  Bargains can create an emotion that will influence your spending behaviour and create the fear of missing out. 

Wanting to be part of a group through satisfaction of the ownership of product - re-evaluate the meaning of the group and if you can get that satisfaction elsewhere.  Is the group superficial and really healthy for you?  

Marketing tactics can include having your sensory needs met such as the right music, smell and feeling the product as you want to buy it (such as a cold drink from fridge), a shopping basket at the front of the store so you can spend more by filling it up and advertising that creates an expectation which is not real but makes you believe in it through the cognitive bias of expectancy.