Impulse Purchase

Impulse purchase summary:

An impulse purchase is a spontaneous decision to purchase something without giving it much thought.
Impulse purchases are frequently driven by emotions and a desire to experience the positive feelings associated with getting something you want.
Advertisers work hard to get to you to make impulse purchases.

Impulse purchase definition and meaning

An impulse purchase is an unplanned decision to buy something you may (or may not) need. It's not well thought out and is usually the result of little to no planning.

If you routinely make impulse purchases, it can be a tough habit to break. You’re not only fighting against your body’s desire to experience the surge of feel-good hormones that accompany such purchases but also against savvy marketers who do everything within their power to get you to buy.

Key concept: An impulse purchase is a spontaneous, unplanned decision to buy something.

More about impulse purchases

Whether it's discounted clothing or chocolates displayed near the cash register, resisting the urge to make an impulse purchase can be a challenge. When you buy, the immediate payoff is a surge of feel-good hormones like dopamine, serotonin, and endorphins. These are just a few of the chemicals released by our brains when we shop, telling us that we're doing a good thing.

According to the Cleveland Clinic, it’s even more than that. Once we decide to go shopping—before we leave the house—happy hormones start doing their thing. That's because even thinking about spending money is enough to get those hormones racing.

Even if a person knows they don't have enough money in the bank to justify the purchase, or they stay up at night worrying about their budget and finances that surge of hormones makes everything feel better, if only for a while.

Impulse purchase: a comprehensive breakdown

It would be tough enough if we only had our hormones to overcome, but we’re also facing off against marketers who know all the tricks.

Here are three main strategies businesses employ to get you to spend more than intended (and prevent you from saving money).

Point-of-sale displays

Have you ever noticed how many items are located near the checkout counter or other high-traffic store areas? These visually appealing items often grab your attention as you wait in line or move past the display. Prices are often in a range that makes a quick decision easy. You might convince yourself that the immediate availability of this thing that you didn’t know you needed is enough to justify the purchase.

Limited-time offers

Some stores seem to have perpetual clearance sales. Or maybe their signs say they’re going out of business or making way for new inventory. Stores create a sense of urgency by making you feel that a special promotion is a limited-time offer. That sense of urgency is designed to push you to act quickly or lose out on a great deal.

Scarcity

If you've been shopping online, you've probably seen a message like, "Hurry! Only three left!" It's the business's way of creating the perception of scarcity and making you wonder if you'd regret missing out on the deal.

Impulse Purchase FAQs

Why do I feel so good when I buy something new?

Among the feel-good hormones released into your body when you spend money are dopamine, serotonin, and endorphins. Each of these chemicals is like a message from your brain telling you you're doing a good thing.

After you develop the habit, you can produce that same delight by working toward your financial goals. Instead of feeling like you can’t have what you want when you put money in the bank, your perception could shift to one where you know you’re setting yourself up for exactly what you want.

Creating financial security means you’re choosing to use your hard-earned dollars on what’s most important to you. Because buying a home, taking a trip, enjoying retirement, or reaching your other financial goals will produce deep satisfaction that can’t be matched by any purchase from the sale rack.

If retailers know that people are struggling, why do they employ underhanded techniques to get them to spend more?

It's all about profit. Most are in business to make money. Their efforts to get you to spend are an obstacle to overcome if you're trying to become a mindful spender.

Is it possible for me to learn to control impulse purchases?

Absolutely. In fact, it's possible to retrain your brain to release those feel-good hormones when you save money rather than spend. Here are a few ways to get started:

Set a spending limit before leaving the house.
Limit social media and the thousands of advertisements you're exposed to there.
Give yourself a cooling-off period to consider whether you genuinely want or need the item. Your cooling-off period may last as long as you need it to.
Don't shop when you're stressed, sad, or otherwise looking for a shot of dopamine.