What is Impulse Buying?

When we think about impulse buying, panic, uncertainty and pandemonium cross our minds. Impulse buying is the sudden purchase of goods and services without prior planning or the intent to do so. It is usually triggered by emotions and feelings. Customers tend to place their hands and hearts on items such as chocolate, gadgets, video games and big tickets items such as cars and jewellery. 

Why does it occur?

Has it ever happened that you walk into a store and want to grab all the shiny and attractive products because of their packaging? One of the biggest reasons for impulse buying is a marketing strategy in the form of lavish packaging luring in gullible consumers and making them spend a few bucks. It is mostly seen in accessories and add-ons for mobile phones. However, the largest reason behind this is the irrational thinking of the general public. 

Causes and Effects of Impulse Buying:

A lot of consumers fall victim to impulse buying. In effect, impulsive buying causes both positive and negative outcomes. Firstly, the buyer may feel fulfilled after obtaining a satisfying product. At the same time, they may suffer from unplanned spending that may disrupt their financial stability.

The most commonly bought impulse buying items include candy, takeout for dinner, mobile phone accessories, items like shoes and designer bags or items you see strategically placed at the checkout counter in a grocery store.

In several instances, you will observe that there are a plethora of clothes in your closet. However, there are a few impulse-buy items that lured you in the beginning. Now as time passes, your hand never reaches for them, leading to a waste of money and bringing no joy.

Understanding the problem:

Impulse buying violates the assumptions of homo economics and moves into the behavioural economics explanation of things. Impulse buying can be associated with positive emotions, such as joy and excitement along with negative emotions like low self-esteem and inferiority.  Regulation against misleading practices that play on the vulnerabilities of impulsive buyers could be sharpened and information provided to consumers and retailers aimed at strengthening consumers’ self-regulatory capacities may mitigate adverse consequences of impulse buying.

Solutions:

Creating a 30-day list is helpful because it allows the customer to economize, set a budget and plan expenditures. Invoking discipline and self-regulation is also an added benefit. Secondly, monitor your urges and be strict with yourself by asking: "Do I really need this? Will I ever use this again? Is this really going to be of any use?" By asking simple questions like these, you will notice that you have suppressed the urge to be impulsive. Furthermore, avoid visiting online websites, as you will be coaxed by their flashy and alluring offers and deals. Avoid or freeze your credit card so you don’t reach for it and spend on an impulse item creating a huge backlog. This will not only help you save on cash but will help you avoid pinching pennies to make ends meet.

It is extremely essential to clear one’s mind and have an organized and planned lifestyle to avoid such problems and to not fall into the extraordinarily planned gimmicks of your favourite store. Be aware and use that money to buy something that you actually want to buy. Overcoming impulse buying urges is the stepping stone to financial responsibility.