The Psychological Impact of Online Shopping

Spending Habits in the Digital Age: Online retailers use sophisticated tactics to encourage spending

By Anastasia Miller, PhD

Firefighting is more than a job; it’s a calling that demands discipline and commitment. However, the same discipline in the firehouse doesn’t always translate into personal finances, especially in today’s digital age, where online shopping is just a click away. This is not in any way a personal failing.

Understanding how the psychology of online shopping affects spending habits is crucial for everyone, as financial well-being directly impacts focus, stress levels, and overall quality of life.

Online shopping has revolutionized how we buy goods. For firefighters with hectic schedules, long shifts, and irregular hours, e-commerce offers ways to get things done and delivered that would not have been possible before. Need a new set of shoes or a belt? A few clicks on your phone during downtime can have it delivered in a couple of days, sometimes even hours. 

However, convenience comes with a cost. Online retailers use sophisticated psychological tactics to encourage spending. Flash sales, “limited-time offers,” and personalized recommendations tap into our innate sense of urgency and preference, often leading to impulsive purchases. For firefighters accustomed to making quick decisions under pressure, this sense of urgency can translate into unnecessary expenditures, especially when browsing during downtime.

How Retailers Encourage Spending

Online retailers tap into emotional and cognitive biases we all have to encourage you to spend. Several of the most common ones include: 

A Sense of Urgency

By placing a timer on the website or stating, “only 5 left in stock,” the seller is trying to tap into a sense of scarcity and make you purchase it before you can think about it. 

Anchoring

This is a common tactic retailers use. They show a higher original price next to the discounted one, making the deal look more valuable, even if the “original price” is inflated.

UX Tricks

There are some common user experience (UX) and visual design tricks that make you more likely to make purchases. For example:

• Red and orange are frequently used for discounts to evoke a sense of urgency and excitement. 
• People typically view screens in a Z pattern, looking horizontally top left to top right, then diagonally down to the bottom left of the page. Merchants know this, and so do things like place high-priced items at the top of the page to make mid-priced options feel more affordable in comparison.

Instant Gratification

We’re neurobiologically wired to view “reward” as a good thing. Dopamine is a neurotransmitter in the brain associated with pleasure, motivation, and reward. When you anticipate or achieve something pleasurable, your brain releases dopamine, creating a “feel-good” sensation. We get little dopamine boosts when we think about getting something we want, when we get the package, and when we open it. The problem with this is online shopping has made it so this can easily turn into addictive behavior. This ties into the next topic:

Stress

Firefighters face unique stressors, including but not limited to, physical exhaustion, emotional strain, and sometimes exposure to traumatic events. For some, online shopping becomes a coping mechanism, a way to escape or reward themselves. 

While occasional retail therapy can be harmless, it can easily get out of control. Under stress, individuals may make impulsive purchasing decisions, prioritizing instant gratification over practical considerations. The ease of online shopping, coupled with personalized recommendations, discounts, and targeted ads, can encourage users to overindulge, often buying items they don’t need.

Stress also heightens cognitive biases, such as the “scarcity effect,” where limited-time offers or low-stock alerts trigger fear of missing out (FOMO). This can lead to hasty decisions. 

How to Shop Smart Online

So how do you take steps to ensure you’re making smart online purchasing decisions? 

Set a Budget

Establish a monthly budget for disposable income, including online purchases. Knowing your limits helps resist the temptation of impulse buys. 

The 24-Hour Rule

Before making a non-essential purchase, wait 24 hours. This cooling-off period allows you to evaluate whether you really need the item or if it’s an impulsive desire triggered by stress or marketing tactics.

Create a Wishlist

Instead of buying items immediately, add them to a wishlist. Periodically review this list to see if you still want the item after a few weeks. Often, you’ll find the urge to purchase has passed. I personally use this one a lot and find it helpful. 

While online shopping is a great thing, it’s important to remember it offers both convenience and challenges. For firefighters, understanding the psychological impact of digital spending is crucial to maintaining financial health and overall well-being. By adopting disciplined habits and practicing some self-reflection, you can navigate the digital marketplace without compromising your long-term goals.

Anastasia Miller, PhD, is program director and clinical assistant professor, Healthcare Leadership, University of Louisville