Every November Black Friday comes with big claims of huge savings and ‘one-day-only’ deals. We are inundated with offers that seem too good to pass up. But underneath it all lies something much more strategic.
Black Friday is not just about one day (now more than two weeks) of discounts. It is also a psychological event, carefully designed to take advantage of the way our brains make decisions.
Understanding some of the science behind this process can help us recognize when we’re being pushed to spend more than we intended.
Quick, quick, spend a lot of money
When we make a choice between options, such as whether to buy a new TV, our brains weigh bits of evidence for and against each choice. We compare prices, features, reviews and what we can afford. Once we feel we have enough information, we will make a decision.
Normally this process takes time. The more important the decision, the more evidence we like to collect.
But when we are put under pressure, that changes. The brain lowers the threshold for how much information it needs before making a decision. In other words, time pressure makes us decide faster and with less evidence.
This can be useful when acting quickly is important. When a spider lands on your arm, you don’t calmly evaluate the pros and cons before throwing it away.
But during Black Friday sales, that same quick decision-making process can lead us to spend money impulsively.
OMG, they’re almost sold out
Black Friday sales benefit not only from the ‘urgency’, but also from the ‘scarcity’. We know that the sale only lasts for a short time and that many people shop at the same time. This creates a strong sense of competition: if we don’t act quickly, we will miss out.
While looking for a TV, the website says there are “only 8 left in stock” and that “12 people have this item in their cart.” Suddenly it feels like a race. Even if you weren’t planning on buying anything right away, you may feel more compelled to “add to cart” before it’s too late.
That feeling of scarcity changes the way our brains process information. When we think something is in limited supply, we assign more value to it and tell ourselves that the item must be good simply because others also have it in their cart.
What was I thinking?
When we make decisions quickly, we rely on less evidence and are more likely to make mistakes, a long-established psychological phenomenon called the speed-accuracy trade-off.
Under time pressure, our brains try to find shortcuts to help evaluate options, such as how many people are viewing an item. But this may be less useful information than details such as warranty, product quality or long-term value.
Signaling that something is scarce can also prevent us from searching for more information. When it looks like a product is sold out, it feels risky to take the time to compare prices or read reviews. The product can disappear while we are still thinking.
Our brains prefer predictable outcomes and try to avoid unnecessary risks, so instead of getting more information, we act quickly.
Quick decisions are not always bad. Acting quickly can save time or prevent damage if we do not have complete information. This may include evacuating when the fire alarm goes off, even if you are not sure if there is actually a fire.
But during Black Friday, retailers create artificial urgency. Timers, ‘limited stock’ alerts and ‘today only’ banners are designed to mimic real scarcity and send our brains into overdrive when making decisions.
Once that sense of urgency sets in, rational thinking can take a back seat. We stop asking, “Do I really need this?” and start thinking, “What if I’m missing something?”
It’s the kind of thinking where you buy a new TV that’s only slightly better than the one you have.
Black Friday feels like a celebration of saving, but it’s also a masterclass in behavioral and brain sciences. Every timer, pop-up and ‘only 3 left’ alert is carefully designed to grab your attention and shorten your decision time.
Knowing how these tactics work can help you stay in control.
4 tips to stay in control:
- Plan before the pressure hits — research what you really need and get more information before the sales season. This helps when the brain has to make decisions under time pressure.
- Set a budget and keep it visible — decide how much you are willing to spend and remind yourself while shopping. This helps counteract the ‘scarcity effect’ and reminds your brain that other boundaries also exist.
- Pause before you buy – if you feel the pressure, take a moment. A break allows your brain to catch up on the excitement.
- Ask yourself “Would I want this for full price?” This helps your brain focus on the true value of the item.
There’s nothing wrong with enjoying a good deal. But when you’re in the middle of all the excitement, it’s worth remembering what’s happening in your brain and who’s really benefiting from it.
Tijl Grootswagers receives funding from the Australian Research Council.
Daniel Feuerriegel receives funding from the Australian Research Council.
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