In the run-up to Black Friday or Christmas, media platforms have been flooded with ads designed to get consumers to part with their money in exchange for goods and services.
But what actually influences people’s decisions to shop? What happens to them psychologically and physically when they’re buying something? And is there another hobby that’s just as joyful, but less expensive and more sustainable?
Have you ever stopped to think about what happens in your brain when you make a purchase? Neuroeconomist Uma Karmarkar, a renowned researcher at UC San Diego, studies exactly that: how we make financial decisions, including those related to shopping.
Fundamentally, neuroeconomists are interested in choices, so they conduct a lot of psychological and/or behavioral experiments where people make choices or tell us about their evaluation of options.
She explains that the process of deciding what to buy involves a complex interplay between neuroscience, psychology and economics, a field of study called neuroeconomics.
Uma Karmarkar, associate professor, jointly appointed associate professor at the Rady School of Management and the School of Global Policy and Strategy at UC San Diego.
When we see a product we like, an area of the brain called the ventral striatum is activated, signaling that we are interested in that item. Even without the intention of buying, our brains mentally “navigate” through the products around us.
Ventral striatum region. Source: Quarmley et al. DOI: 10.3389/fnbeh.2019.00219. License CC BY 4.0
But when we start to consider spending money, other areas of the brain come into play, which analyze factors such as price, our willingness to pay, and the perceived value of the item.
These processes occur in both physical and online shopping. However, the experience of being in a store can be influenced by factors such as interaction with the product, visual displays, and even the presence of other people, while online shopping relies more on images and descriptions.
Familiar brands have a significant impact on the brain, as they evoke trust and familiarity. This feeling is processed in a rewarding way in the brain, helping with purchasing decisions.
Interestingly, our brains respond differently to brands than they do to loved ones, showing that this emotional connection is unique.
Companies use these findings to influence our choices. For example, when shopping online, have you ever noticed “recommended” products that match what you’re looking at? According to Karmarkar, this increases the likelihood of a purchase. On the other hand, displaying mismatched items can distract focus and reduce the likelihood of a purchase.
Shopping activates specific areas of the brain, such as the nucleus accumbens and the prefrontal cortex, that are associated with pleasure and reward. These same regions are activated when we eat a delicious meal, experience something new or exciting, or anticipate a future reward.
In addition, the dopamine system in the brain drives the desire for novelty, explaining why we feel the urge to buy something new even when we still enjoy what we already have.
Karmarkar suggests that we can find similar rewards to shopping in more sustainable experiences, such as investing in a massage or renovating something we already have.
She explains that we don’t have to give up pleasure; we just need to redirect it to choices that are less harmful to the environment. For example, something “new to me,” such as a secondhand or refurbished item, can be just as satisfying as something completely new.
Karmarkar emphasizes the importance of planning. Before you buy, ask yourself: what are my goals? Making a shopping list helps you avoid impulsive decisions, since our brains are naturally always “navigating.”
Also, consider other options for your money or time before deciding to make a purchase. If, after reflection, you still think it’s worth it, then it’s probably the right choice.
With this scientific perspective, understanding what motivates our purchasing decisions can help us be more conscious consumers, balancing the pleasure of shopping with sustainable choices that align with our goals.
READ MORE:
The Science of Shopping
UC San Diego
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