It’s not you, it’s them: Why over-shopping can leave you feeling broke and dejected
We have come a long way in dealing with romantic relationships by creating boundaries and identifying red flags. Yet, when it comes to our relationship with shopping, we are stuck in a David and Goliath battle while being sucked into the same old pickup lines.
Social media as we know it in 2024 has evolved from a platform for connection to a key shopping destination for many of us. Whether we are consciously aware of this or not, the platforms and brands in this digital world shape our buying decisions, quite often to our detriment.
How the hell did we get here?
A recent report by InCharge Debt Solutions has shed light on how digital platforms and marketing entice consumers to spend beyond their means to “keep up with the fun” of shopping - shopping is now an experience, and a place you get left behind if you don’t join in.
The olden days of shopping were geared towards filling a need… now, that seems so yesterday! Today, murmurs abound from a few who are actively #deinfluencing to return to those good ol’times.
Now, I need to be clear. I am not anti-consumption by any stretch. However, after a lifetime of analysing how humans are engaged – usually from a commercial perspective – I can see that overconsumption has serious implications for the environment and mental health. I stand for conscious consumption and respectful brand relationships.
This is why I want to lift the lid on damaging sales tactics that do not serve anyone – neither consumers, nor businesses.
Here are a few realities that support my view.
The Lure of Social Media: A Catalyst for Overspending
Social media platforms like Instagram, TikTok, and Facebook are designed to be addictive. They are filled with images and videos of idealized lives, luxury goods, and fabulous vacations, which create an aspirational world that we all (consciously or not) strive to emulate. According to InCharge Debt Solutions, over a third of people admit they overspend to keep up with the fun they perceive their friends are having on social media.
Overspending as a hobby is spurred on by a number of deliberately deceptive, or “toxic” brand strategies:
Creating an Illusion of Affordability: Many brands and influencers showcase luxury lifestyles and high-end products as if they are easily accessible to everyone. This often leads to a disconnection between the consumers’ real financial situation and the lifestyle they aspire to, pushing them towards purchasing decisions that are not financially prudent.
Promotion of Instant Gratification: Brands leverage the fear of missing out (FOMO) by creating time-sensitive deals and flash sales. Platforms like Instagram and TikTok amplify this by hosting exclusive launches and influencer collaborations that urge immediate purchasing.
Encouraging Debt-Fueled Purchases: The rise of Buy Now, Pay Later (BNPL) schemes has been particularly divisive. These services, often advertised directly on social media platforms, tempt users to buy items beyond their means by deferring payment to a later date, sometimes accruing high interest in the process.
Psychological Effects of Social Media on Consumer Behavior
The impact of social media on consumer behavior extends beyond mere spending patterns. Studies published in journals such as PLOS have shown a clear link, indicating that accumulating debt can significantly impact psychological well-being, leading to depression. Research reported in Psychology Today supports the understanding that debt is a causative factor for mental health struggles, rather than mental health issues leading to debt. This insight is crucial for understanding that the actions that brands take on social media, and the platforms themselves, can, and do, affect our mental health and overall well-being.
Common side-effects experienced by consumers include:
Increased Anxiety and Depression: The pressure to match the online displays of wealth and happiness can lead to increased anxiety and depression. A study highlighted by InCharge Debt Solutions notes the psychological distress individuals feel when they cannot afford the lifestyle they see promoted on social media.
Impulse Buying and Regret: Social media often triggers impulse buying, where decisions are made on the spur of the moment without considering the financial consequences. This can lead to post-purchase regret and severe financial strain, especially if the purchases are made on credit with no clear plan for repayment.
Dependency on Social Approval: Consumers increasingly rely on social validation for their purchasing decisions. This dependency can diminish personal satisfaction with purchases and perpetuate a cycle of buying and posting for approval, rather than based on need or genuine desire.
Combating the Negative Impact of Social Media on Buyers Remorse
Recognising the influence of social media on our spending habits is the first step towards mitigating its impacts.
Now, no one here is advocating for full abstinence – that could be an economic disaster! There are, however, things that you can do to ensure you shop safely.
Here are some strategies to take back your power #shopsafely:
Educate Yourself About Social Media Marketing Tactics: Understanding the strategies used by brands to encourage spending can make you more resistant to their tactics. This includes recognizing common practices like scarcity marketing (limited-time offers), influencer endorsements, and targeted advertisements based on user behavior. We unpack many of these plays on our Instagram account, so check in there.
Set Clear Financial Goals and Budgets: By setting clear financial objectives and sticking to a budget, you can safeguard against impulsive purchases influenced by social media. Tools like budgeting apps can help track spending and alert you when you are nearing your spending limits. For the adventurous, you could try the retro practice of shopping with a debit card. LOL.
Use Social Media Consciously: Paying attention to how you interact with social media can significantly reduce its impact on your spending. They say that awareness is the first step… set yourself a goal to simply pay attention to how the tactics described here pop up in your feed. Once you start seeing them, you can make conscious decisions about what to do next, for example, curate your feed, never shop on friday nights, unfollowing brands that utilise toxic overspending tactics. You are worth more than that!!
Take Control: Understanding Brand Manipulation and Reclaiming Your Consumer Power
In our interconnected digital age, social media undoubtedly enriches our lives in many ways, from staying connected with friends and family to discovering new interests. However, its impacts on our spending habits, often fueled by sophisticated and underhanded brand strategies, cannot be ignored. Awareness, leading to conscious spending behaviours can alleviate some of the negative effects of social media on our financial and emotional well-being.
It’s important that as a consumer, you don’t spiral into a world of self-hate and depression.
“The tactics that are being used to influence you are incredibly sophisticated, and curated with only one goal in mind: to drive you to excess consumption. The closer the algorithms approach perfection, the more confused and broke we all find ourselves.”
This is why it is so important to take back your power – and it is not impossible. We can win the war against rampant consumerism by opening our eyes and not being played for a fool.
Take note of the various ways you are influenced daily. Make a list of the deceptive, aggressive and toxic ways in which brands engage with you with the intention of getting you to overspend. Capture the empty promises that are made to you on a daily basis.
And reward genuine brands that are going to put in the effort to win your attention.
Discover how to become that brand. Get started with a free RAMMP Diagnostic and find all the areas where you are letting your future customers down in the brand buyer relationship.