Last Updated on October 3, 2024
A guest article by Hà Vy Lưu https://www.linkedin.com/in/luuhavyy/. City University Bremen, Academic Writing & Research Methods Term Paper, Summer Semester 2024.
In the flow of the e-commerce revolution, the emergence of social commerce, or s-commerce, is the integration of in-app shopping into social media that can utilize impulsive buying behaviour to effectively foster demand and conversion.
Recent studies highlight significant aspects of impulsive buying behaviour within the online shopping landscape. Nguyen (2024) examines how personalized recommendations and interactive features in social commerce platforms increase impulsive buying.
The study emphasizes that these features create an engaging shopping experience, encouraging spontaneous purchases. Similarly, Zhang and Shi (2022) investigate the influence of social presence on consumers’ impulsive buying behaviour in online shopping. Their research shows that the sense of social presence significantly impacts consumer behaviour, leading to higher conversion rates.
While these studies highlight how social commerce features stimulate impulsive buying, they primarily focus on the characteristics of social commerce and its influence on compulsive behaviour. However, they do not explore specific marketing strategies that can effectively harness these features. Moreover, ethical considerations surrounding the use of impulsive buying behaviours for marketing purposes are underexplored.
This article will explore the insight into impulsive purchasing behaviour, social commerce, and their intricate interplay along with leveraged marketing strategies in this prospect. Furthermore, it is crucial to consider the ethical implications of capitalizing on compulsive purchasing behaviour, as it could affect business-customer relationships and customers’ well-being.
Understanding Impulsive Buying Behaviour
Several factors affect and formulate unplanned purchasing however psychology is the most noteworthy factor. Impulsive buying is the spontaneous behaviour when emotional cognition is stimulated and establishes ad hoc purchasing (Rook and Hock, 1985). Li et al. argue that buyers lack self-control, allowing emotions to transgress rational thinking in their buying decisions (2020). In both definitions, emotions play a powerful role in shaping behaviour.
Besides the appeal of specific products, social influence and the desire for gratification are the main cross-product causes of these emotions, resulting in cognitive bias.
The need to fit in or portray their role model leads to certain buying trends, as individuals seek to align themselves with social norms and avoid feeling isolated. Alternatively, when experiencing depression, the desire for gratification causes individuals to disproportionately weigh the initial piece of information, disregarding contrasting information that contradicts their beliefs about the product.
How Characteristics of Social Commerce Impact Online Impulsive Buying
Social commerce is the online shopping feature integrated into social network sites, namely Facebook, Instagram, and TikTok. According to Roschmann (2021, p. 31, as cited in Geibel & Kracht, 2021), social commerce is not merely a new form of advertising or a single step in the customer journey. The characteristics of social commerce which is the integration of shopping features into social media platforms potentially affect and foster the buying decisions of impulsive consumers.
The advantages of social media lie in its rapidly changing nature and its social interactivity, which allows users to share and consume content. These serve as a productive environment for driving online hype.
Due to psychological factors such as fear of missing out (FOMO) and herd mentality, individuals are easily influenced to follow the trends and stay fashionable. Brush (2019) proposed that FOMO pertains to an emotional reaction to the perception that others are leading more fulfilling lives or that significant opportunities are slipping away. The amygdala, the part of the brain responsible for assessing potential threats to survival, interprets the feeling of exclusivity as a threat.
Smartphones and social media have significantly increased FOMO by constantly showing users idealized experiences online. Social platforms such as Twitter, Facebook, Instagram, and Snapchat make it easy to observe others’ activities, often showcasing glamorized versions of their lives. This skews users’ perceptions of normalcy, making them feel they are not doing as well as their peers (Brush, 2019), which contributes to compulsive buying behaviour.
By way of illustration, young people who contribute to major online sales often feel the need to keep up with their fellow groups, which includes purchasing and owning things, to gain a sense of belonging. Consequently, the sense of FOMO leads to herd mentality, which refers to the tendency of individuals to conform to the actions and behaviours of a larger group, often without critically evaluating their preferences or decisions. This mentality can lead to impulsive buying simply because they see others doing the same. The belief that “if everyone is buying that, it must be good” potentially overrides the rational decision-making process.
Furthermore, previous research suggests that online impulsive buying behaviour is even more significant than offline counterpart (Liu, Li, & Hu, 2013) because of the convenient and seamless buying process that s-commerce can offer.
Unlike traditional e-commerce, which involves multiple steps such as searching for the product, reading reviews, and comparing prices, the content on s-commerce itself acts as a review and triggers the feeling to buy. With just one click on the cart symbol right on the screen, consumers are directed to the product-selling page. When making buying decisions immediately after consuming content on social media sites, a simpler and quicker process leads to a higher conversion rate, as it does not cut the instant gratification mood of consumers.
Moving on now to consider the most notable advantage of s-commerce, its proactive approach compared to traditional e-commerce. While customers of the latter simply search for products when they have a need, s-commerce actively pushes the content to customers, creating a sense of the need.
Social media distributes content to users based on their behaviour and interest in those apps, so the posts or videos that reach them usually seem entertaining and persuasive to them. While feeling happy and relaxed, confirmation bias makes people see only the good aspects of the product and ignore the disadvantages.
However, the feeling individuals have at the purchase point is often confused with the feeling created by the social media content. This confusion can provoke compulsive purchase decisions, as the positive emotion elicited by engaging content is mistakenly attributed to the product itself, rather than to the content that presents it.
To give a concrete example, I describe the case study named “TikTok Shop and its impact on online impulsive buying behaviour” below:
TikTok, a leading short-form video platform, expanded its capabilities with the launch of TikTok Shop in recent years in several countries. This innovative feature integrates e-commerce directly into the TikTok app, allowing users to discover and purchase products seamlessly while engaging with content.
The challenge lies in leveraging the advantaged difference of TikTok Shop from traditional e-commerce platforms. Unlike conventional online stores that primarily facilitate transactions, TikTok Shop merges social interaction with shopping, presenting opportunities to interact more intimately with buyers during their browsing and purchasing journeys.
TikTok’s unique features enable all users to potentially go viral, fostering increased interaction among peers on the platform. Users can create authentic content that may quickly gain popularity, simultaneously acting as affiliates for TikTok Shop. By integrating product links directly into their videos and prominently displaying shopping carts on their profiles, these affiliates streamline the shopping experience for potential customers.
For instance, a user can include a link to a product in the corner of their video, allowing viewers to purchase with just a few clicks. This seamless integration creates an environment where users are constantly exposed to new products in a casual, entertaining context.
Moreover, TikTok’s live streaming feature offers real-time engagement between influencers or sellers and their audience. During live streams, sellers can showcase products, answer questions, and provide demonstrations, creating an immersive shopping experience. This real-time interaction builds trust and urgency, encouraging viewers to make quick purchase decisions due to the immediate, personal connection they feel with the presenter.
The combination of live demonstrations, immediate feedback, and limited-time offers during these streams leverages psychological triggers like FOMO (Fear of missing out) and the desire for instant gratification.
The effectiveness of TikTok Shop in driving impulsive buying behaviours is evident through various studies and user feedback. For example, Geibel and Kracht (2021) found that TikTok Shop’s interactive features, such as live streaming and clickable product links, significantly impact consumer purchasing decisions. Their research indicates that these features enhance user engagement and conversion rates, demonstrating the platform’s effectiveness in driving impulsive buying behaviours.
According to their study, 83.05% of respondents believe that the interactive features of TikTok Shop influence their purchasing decisions on a product. This high percentage highlights the strong influence TikTok Shop has on consumer behaviour.
However, there are notable drawbacks. The primary user demographic of TikTok is relatively young, which limits the platform’s reach across different age groups. As of April 2024, it was found that 36.2 per cent of TikTok’s global audience was between the ages of 18 and 24 years, while 33.9 per cent were aged between 25 and 34 years. This indicates that TikTok’s user base is predominantly younger, which may limit its appeal to older demographics (Statista, 2024). Additionally, other social media platforms have started to imitate TikTok’s short video content format, diluting its unique selling proposition and increasing competition.
TikTok Shop should maintain a strong focus on innovation to stay ahead of the competition. This includes continually developing new features that enhance user engagement and leveraging advancements in AI and machine learning to better understand and predict consumer behaviour. Keeping the platform fresh and exciting will be key to maintaining user interest and driving sales.
To mitigate the current age concentration, TikTok Shop should develop strategies to appeal to a broader age range. This could involve creating content that resonates with older demographics or collaborating with influencers who have a diverse following. Expanding its demographic reach will help TikTok Shop capture a wider market share and reduce its reliance on younger users.
Given the increasing competition from other platforms imitating TikTok’s short video content format, TikTok Shop should continue to enhance its unique features. Investing in new and exclusive functionalities that set it apart from competitors will help maintain its competitive edge. Emphasizing elements like interactive live streams and seamless integration of shopping features can enhance user experience and drive impulsive purchases.
In conclusion, TikTok Shop revolutionizes online shopping by blending social interaction with e-commerce, using features like live streaming and clickable product links to drive impulsive buying behaviours. Despite its strong influence on younger users, TikTok Shop needs to diversify its appeal to older demographics and innovate consistently to stay ahead in a competitive market.
Ethical Consideration to Maintain a Healthy Relationship with Consumers
Although leveraging compulsive behaviour can significantly boost sales, these strategies raise ethical arguments about a negative impact on consumers and the balanced relationship between businesses and their customers.
Firstly, some critics argue that exploiting tactics such as FOMO and social pressure takes advantage of consumers’ psychological vulnerability. Customers become aware of how these tactics affect their psychology resulting in them feeling manipulated and losing their trust in the brand.
Moreover, in an era where people prioritize their mental health as much as their physical well-being, the media and customers are likely to expose and condemn brands that exploit people’s mental weaknesses. The worst-case scenario prompts the boycott of the brand.
Another key point is that buyers make online transactions quickly because of instant gratification; however, they may subsequently experience outcome regret that entails after comparing their purchase with alternative options they could have chosen if they had made the decision differently (Zeelenberg & Pieters, 2006, as cited in Esterhammer & Huang, 2017). Nevertheless, there is a side-effect to notice: post-purchase regret.
In the study conducted by Lee and Cotte in 2009, two components of the regret process were identified: regret due to under-consideration and regret due to over-consideration. Post-purchase regret typically falls under the former category, where customers have scarce information and lack sufficient time to make a well-informed decision.
Repeated instances of regret can lead to confirmation bias, resulting in disappointment with both specific brands and social commerce overall, as customers disproportionately blame them for dissatisfaction. Additionally, due to the context of social commerce, where more customer-supporting policies are emerging, businesses may receive high return requests and negative reviews.
Lastly, the overuse of certain strategies highlights a focus on short-term gain while undermining the process of building long-term with customers. These strategies are applied solely for immediate revenue benefit, without considering customer satisfaction or deeper engagement. As a result, trust and loyalty may be lacking in the interaction between businesses and their customers, as tactics are directed toward short-term transaction targets. Consequently, competitors may benefit by reaching customers and easily influencing their decisions.
In contrast, when long-term strategies are implemented, customers can be converted into loyal communities, aiding in the sustainable growth of brands. The opportunity for increased sales through repeated purchases and customer referrals is prevalent when relationships with existing customers are nurtured and maintained. However, with the healthy approach, impulsive buying behaviour can be leveraged to foster trust, ultimately leading to long-term loyalty.
Marketing Strategies in Social Commerce to Exploit Impulsive Buying
We have explored insights into impulsive buying behaviour and the influence of social commerce, which businesses have recognized as a potential means to increase sales and maximize profit. Consequently, several digital marketing strategies have been formulated and amplified based on the advantages of social commerce and an understanding of spontaneous customer behaviour, which we will discuss in this section.
Influencer marketing has emerged as one of the most effective strategies in today’s digital landscape. Influencer marketing, leveraging influential individuals’ connections and sway, has a tradition dating back to when radio, print, and celebrity endorsements shaped public opinion and purchasing decisions. This strategy is the collaboration between businesses and popular users on the platform to promote their products. Influencers, with their strong impact on their followers or sometimes reaching a larger audience with impressive photos or persuasive captions, have the potential to create trends.
Following the discussion of impulsive shopping psychology, the desire to adopt the style, preferences, and even mannerisms of their following influencers, who embody their role model, served as the motivation for followers to engage in online shopping transactions.
To ensure ethically amplifying, businesses must build genuine relationships by carefully choosing collaborative influencers who believe in and use your products, and embrace similar values with the brand besides targeting their communities. They also should encourage and allow influencers to provide honest feedback and engage in two-way communication with followers.
Influencers are more authentic, they can bring more trust for gaining long-term customers. In addition, brands can work with influencers on long-term campaigns rather than one-off promotions to foster deeper connections with the audience that make them continuous engagement.
Secondly, user-generated content (UGC), which has become more prevalent with the rise of TikTok- a short video platform, can lead to products going viral among their peers and impacting their buying decisions. UGC is the product review and sharing of content from regular users without special status or privilege.
User-generated short video content has a distributed algorithm to reach peers with similar interests so that it is easier to spread the hype. To elucidate, the sense of peer endorsement or social exclusion fosters a desire to own trending items shared by other social media users.
For example, the #GucciModelChallenge on TikTok saw thousands of users creating their own unique “Gucci-inspired” outfits, leveraging UGC to generate massive brand exposure and drive interest in Gucci products. This campaign demonstrates how effectively harnessing UGC can enhance brand visibility and influence purchasing behaviour.
User-generated content as a long-term strategy should be multi-dimensional, diverse, and continuous. Businesses should prompt customers to share their honest experiences and reviews, addressing both positive and negative feedback constructively. This demonstrates that customer opinions are valued and enhances brand trustworthiness, ensuring the content is perceived as original. Additionally, highlighting a wide range of customer stories and formats (written posts or video posts) ensures inclusivity.
Monitoring UGC through monthly or seasonal campaigns maintains constant engagement without overwhelming the audience. This prevents the perception of scripted content for advertising, especially when a sudden influx of such content appears.
Finally, urgent tactics such as flash sales, and limited-time vouchers can amplify the fear of missing out and accelerate the decision-making process. Urgent tactics compel customers to make transactions more quickly, as they may otherwise miss the opportunity to purchase at a discount price. This psychological factor reduces the time for rational thinking resulting in impulsive shopping. Additionally, these strategies create a sense of scarcity, which can make the products seem more valuable. By leveraging urgency, businesses can significantly boost their short-term sales and enhance customer engagement.
Urgent tactics must be applied carefully by brands to avoid making customers feel manipulated or offended. When using these tactics, businesses should accompany them with clear terms and conditions of promotions to reduce misunderstandings with buyers. Furthermore, ensuring robust customer support to address any concerns or regrets following impulsive purchases is essential for maintaining long-term customer trust.
Most importantly, businesses must ensure that flash sales and limited-time offers are used in moderation so that customers do not feel overwhelmed. For example, if mega live sales occur too frequently within a month, customers may question the authenticity of favourable deals. Therefore, balancing the frequency and timing of these promotions is crucial to preserving customer trust and loyalty over time.
Summing Up
In conclusion, the rise of social commerce presents an opportunity to capitalize on impulsive buying behaviour, thereby stimulating demand and driving conversion in online retail landscapes. By a deep understanding of both impulsive purchasing behaviour and unique features of social commerce, businesses gain insight into how compulsive buyers make quick decisions and how these decisions are influenced by social commerce.
This knowledge empowers businesses to exploit customer psychology effectively by implementing targeted marketing strategies that fit the fast-paced, interactive nature of social commerce. Nonetheless, it is imperative to acknowledge the moral consideration associated with exploiting impulsive buying behaviour.
While such tactics may bring short-term gain, they can potentially erode trust and damage long-term relationships between business and customer. Hence, maintaining an approach at a healthy level that ensures consumer well-being is vital. As social commerce continues to evolve, businesses must navigate the balance between using impulsive buying behaviour to boost sales and ensuring customers are treated fairly.
References
Brush, K. (2019, July 8). FOMO (fear of missing out). WhatIs. Retrieved from https://www.techtarget.com/whatis/definition/FOMO-fear-of-missing-out#:~
=The%20fear%20of%20missing%20out,%2C%20dissatisfaction%2C%20depression%20and%20stress
Esterhammer, O., & Huang, J. (2017). The triggers of buyers regret impulsive purchases [Master’s thesis, Jönköping University]. DiVA. Retrieved from https://hj.diva-portal.org/smash/record.jsf?pid=diva2%3A1106734&dswid=-6438
Geibel, R., & Kracht, R. (2021). Social commerce – Origin and meaning (Version 4.0). Research work of the E-Commerce Institute Cologne. Hochschule Fresenius – University of Applied Sciences.
Geibel, R., & Kracht, J. (2021). Utilization of TikTok Shop interactive features and their impact on consumer purchasing decisions. ResearchGate. Retrieved from https://www.researchgate.net/publication/377428984_Utilization_of_TikTok_Shop_Interactive_Features_and_Their_Impact_on_Consumer_Purchasing_Decisions
Lee, S. H., & Cotte, J. (2009). Post-purchase consumer regret: Conceptualization and development of the PPCR scale. In A. L. McGill & S. Shavitt (Eds.), Advances in Consumer Research (Vol. 36, pp. 456-462). Association for Consumer Research. Retrieved from http://www.acrwebsite.org/volumes/14722/volumes/v36/NA-36
Li, M., Zhao, T., Huang, E., & Li, J. (2020). How does a public health emergency motivate people’s impulsive consumption? An empirical study during the COVID-19 outbreak in China. International Journal of Environmental Research and Public Health, 17(14), 5019. https://doi.org/10.3390/ijerph17145019
Liu, Y., Li, H., & Hu, F. (2013). Website attributes in urging online impulse purchase: An empirical investigation on consumer perceptions. Decision Support Systems, 55(3), 829–837.
Nguyen Thi Hai Binh. (2024). Impulse buying behavior of consumers through social commerce. ZBW – Leibniz Information Centre for Economics, Kiel, Hamburg.
Rook, D. W., & Hoch, S. J. (1985). Consuming impulses. In M. Holbrook & E. Hirschman (Eds.), Advances in Consumer Research (Vol. 12, pp. 23–27).
Statista. (2024). Distribution of TikTok users worldwide by age group. Retrieved from https://www.statista.com/statistics/1299771/tiktok-global-user-age-distribution/
Zhang, M., & Shi, G. (2022). Consumers’ impulsive buying behavior in online shopping based on the influence of social presence. Computational Intelligence and Neuroscience, 2022, 1–8. https://doi.org/10.1155/2022/6794729
With thanks for the photo on Unsplash to https://unsplash.com/@lancereis