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4 Sneaky Ways Online Retailers Trigger You To Make Impulse Purchases

4 Sneaky Ways Online Retailers Trigger You To Make Impulse Purchases

HuffPost
Thursday, May 16, 2024 12:10:36 PM UTC

Discounts, low-stock messages, countdown clocks and other tricks that get you to spend money without thinking.

We’ve all purchased something impulsively online. The decision was likely triggered by a message telling you the item was the last one in stock, or because a retailer offered free shipping if you added one more thing to your order.

It’s common for online retailers to use these kinds of tactics to encourage you to buy in the moment and spend more, with the goal of increasing revenue, explained Lennart Baardman, assistant professor of technology and operations at the University of Michigan Ross School of Business. “Generally, that comes from increasing demand.”

One way retailers increase demand is by appealing to shoppers’ emotions. This includes using discounts or low-stock alerts to create a sense of urgency or fear of missing out (FOMO) that encourages you to react quickly and purchase, said Gary Reichmuth, associate professor of instruction in executive education at the University of Texas at Dallas’ Naveen Jindal School of Management.

“It’s the value perception — if they feel that there’s just a few left, there’s that exclusivity that they’re getting something special,” he told HuffPost. “If there’s a run on products, then there’s social proof, a belief that if other people are buying it, it must be good.”

If you tend to buy things you don’t want or need or overspend, here’s what you should know about the strategies retailers use to encourage impulsivity, why the tactics work, and how to avoid falling into the trap.

Read full story on HuffPost
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