Effects of Impulse Buying and How to Control It

One of the most common consumer buying behavior is making impulse purchases. It's arguably the main enemy of people trying to save money in 2023 and spend less on non-essentials. However, an impulse buying behavior can be difficult to stop. And even if a person does, it does not happen overnight.

But it would help to understand the science behind this consumer behavior. In this article, we will explain consumer behavior on impulse buying, a few examples, and how you can stop yourself from making unplanned purchases. We'll also elaborate on strategies and best practices that you can adopt to control your impulse buying tendency.

What is Impulse Buying?

Impulse buying refers to the sudden compulsion to buy a particular product or item. You didn't plan to buy it, but the temptation could feel so strong that it can make you think it's a need even though it's just a simple want. Impulse purchases occur when an urge to buy is fuelled by an emotional and psychological desire.

Why Do People Impulse Buy?

There are sensory and psychological factors that trigger impulse purchases. People's spending habits and impulse shopping behavior can be caused by the following reasons:

Instant gratification

Impulse buyers have internal debates going on. Their brain would tell them that buying this shirt is needless at the moment, and that they have plenty of unused clothes in the cabinet. Plus, the amount you'll buy the shirt with can instead be saved to increase your savings. But then your emotions are going to tell them that buying this shirt is an act of self-love, and that it'll genuinely make them happy. It's that feeling of instant gratification, where buying something for one's self at that moment is irresistible.

Physical boosts and baits

People don't plan to buy anything in the store except the items that made them go there in the first place. But as they go to the grocery store, they are met with physical "temptations" that would make them buy. For example, retail stores will display products in a frequented area of the establishment so people passing by can take a look at them. The ending is, you just bought a product on impulse made possible by a brilliant marketing strategy.

Salespeople present in the store can also persuade you into buying an item by discussing its features, why it's an awesome deal, and all the good things they can say about the product, which will suffice for you to make the purchase.

The "Ha! I got a deal" feeling

Impulse buying doesn't always mean unnecessary spending on products and services. It can also mean that shoppers and consumers are more likely to buy during the sales season when items are at discounted prices or when products have free vouchers, are equipped with a free gift bag, and are refundable. In so saying, people also buy if they think they are saving money by availing of discounted products and other exciting sales promotions.

New products on display

Anything that's something new to the eyes will entice impulse buyers. It will encourage them to stop, look around, and eventually pick items that they'll buy. Even the window display has some marketing work going on it. Marketers will display their best items on the window for the shoppers outside to see and be enticed with. If it's something new and original, chances are they'd find themselves proceeding inside your booth to further inspect the product and potentially buy it.

Impulse Buying Examples

You only planned to visit the bookstore as a bona fide bibliophile without a consumer's purchase intention. After all, you still have a ton of books unread on your bookshelf. This is just going to be a visit. There is no purchase that's going to happen. Until you saw a book that caught your attention.

You checked the price, it's not that expensive but it's not that cheap either. You're now having an internal debate about whether to buy it or not. Inevitably, you bought it, telling yourself that by the time you go back to this bookshop, this book will already be gone, purchased by a fellow bookworm. This is impulse buying.

Aside from books as an example, you may also be interested in knowing which other goods and services top the list of impulse purchases among consumers and shoppers. In general, below are the most common impulse buying examples that people buy on compulsion:

• Food and grocery items

• Clothing

• Vehicles

• Household products

• Coffee

• Takeouts

• Electronic gadgets

• Toys

• Shoes

Effects of Impulse Buying

Let's be honest: Impulse buying is bad for your financial health. This is especially true for people who are trying to save money for a car or an affordable house and lot for sale, yet are finding it hard to achieve their financial targets because of the temptation that comes from impulse buying. To encourage you to do the opposite, below are just some of the most significant impacts of impulse buying.

Little to no savings

Excessive in-store or online shopping is one of the main culprits as to why consumers have little to no savings in their bank accounts. Since a product bought on impulse is not part of the allotted monthly budget, chances are you'd be forced to decrease your savings amount for the month, which can create a domino effect every time you impulse buy.

Bad credit standing

Not a few impulse buyers fulfill their purchasing urges via the use of credit cards or simply borrowing money from someone or a financial institution. Should this unhealthy consumer behavior uncontrollably persist, it's likely to result in low credit scores rooted in missed payments or nonpayment altogether.

Ballooning debt

With a bad credit report comes a ballooning debt. It will make you live from paycheck to paycheck with no savings and more debt to pay in years. If you suddenly become unemployed or got laid off from your job, it's going to be a financial nightmare.

Regret, regret, regret

You are bound to regret your impulse purchases by the time you feel its negative financial impact. Emergencies happen, and during such times you'd need money. You'll then regret engaging in a series of impulse purchases and vow to not do it again. Still, feeling remorse is the start of unlearning this unhealthy financial habit. Feeling regret is normal, and it should rather encourage you to make better financial decisions moving forward.

5 Best Practices to Control Urge to Impulse Buy

This blog wouldn't be complete without giving you a rundown of practices to adopt in order to control your consumer urge to impulse buy. These five best practices are:

1. "Procrastinate" on your decision to buy

If you're taking quite some time in deciding whether to buy something or not, you'd be better off "procrastinating" your decision. That is, decide upon buying it later or forget the idea of making the impulse purchase altogether.

2. Always remember to live within your means

It's always easier said than done, but it's a piece of practical advice that truly works. You can apply the popular 50-30-20 tactic to achieve this — 50 percent allotted to your needs and monthly expenses, 30 percent to your wants, and 20 percent for savings. This is unironically a well-balanced approach that rightfully prioritizes necessities without depriving yourself of enjoying the fruit of your own labor through buying your wants. And of course, you should have money allotted to a savings account.

3. Have a strict budget plan in place

Having a budget plan in place obliges you to spend less and save more until you completely learn to get away from your compulsive buying behavior. For example, if it's not part of the budget, don't buy it. If you don't need it, don't buy it. If you think you're going to be fine without it, don't buy it. Stick to your budget plan and savings goals.

4. Put your money in the bank and make access difficult

Personal finance management can be a daunting task with a meager monthly pay. But if you can, make it a priority to consistently contribute to your savings account. To make sure you're not going to touch it when impulse purchases arise, make its access difficult. For example, consider having a savings account in a bank that does not have a branch in your area. This way, it would be harder for you to access your savings and spend it on a whim.

5. Go on a prolonged spending hiatus

If you're well aware that you have spent too much money on impulse purchases, embark on a goal to go on a prolonged spending hiatus. Needless to say, you would still need to fulfill your financial obligations. What you would put an end to for an extended period of time is spending money on items and products that you are likely to purchase on impulse.

If you have future plans and are saving for an affordable house and lot, take it as a motivation to refrain from excessive impulse purchases. Impulse buying sometimes is okay, but it should not be to the point that both your financial responsibilities and goals are compromised.

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