Monday, July 22, 2024

Social media’s influence on impulse buying

Social media has enticed millions of Australians to make impulse purchases which many have later regretted, according to new research by Finder.

A nationally representative survey of 1054 respondents revealed two in five (40%) Australians – equivalent to eight million people – have made an impulse purchase of a product they’ve seen on social media.

Almost a third (28%) of the respondents say they regret making at least one of the impulse purchases.

Younger Australians are much more likely to be influenced by social media – 70% of gen Z respondents and 59% of millennials respondents confess to impulsive spending. That’s compared to just 12% of baby boomers and 23% of gen X.

Finder money expert Sarah Megginson says the impact of social media on Australian spending habits is significant.

“Whether you’re scrolling through Instagram or Tiktok, ads are becoming more targeted and strategic, making it that much easier to splash out on things you don’t really need,” she says.

“The so-called ‘highlight reel’ often entices people to keep up with those around them, which can contribute to unplanned spending.”

Finder’s research showed the majority of those who made a spontaneous purchase did so because it seemed like something they’d use (56%), while almost one in four (24%) purchased an item to keep up with trends or friends.

The survey found one in five (21%) bought a product purely for the aesthetic, and 20% purchased something because they followed or liked the person who promoted it.

Less than one in five (17%) bought something because they genuinely needed it, while 15% admit they wanted to ‘show off’ on their socials.

The research showed just 12% of the consumers surveyed have no regrets about their social media inspired spending.

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