“I don’t know what got into me. I just had to have it.”

How many times have we said that? What motivates impulse purchases? How can we control them?

Let’s start with the motivators-

External Impulse Buying Motivators

Easy Access- It’s easier to spend your money then ever before. ATMs, debit cards, and easy credit abounds. You don’t even need to leave your easy chair. Just turn on your computer or TV.

Targeted Marketing- Billions of dollars are spent every year competing for your money. The most motivating of all pitches? It’s still those magic words: “On Sale.” The second most motivating: “Free Shipping.”

Distractions- Studies show that the more distractions in the shopping environment, such as “music, bright colors, and incredible offers” the more impulsive shoppers will be.

Remember the KMart “Blue Light Specials? An announcement would come over the store intercom system: “ATTENTION KMART SHOPPERS!!! Look for the blue light over by…” Who could resist that? My mom and I would be off and running.

Influence of Others- Shopping with a friend is more likely to result in an impulse purchase.

Internal Impulse Buying Motivators

Shopping momentum- Get Rich Slowly recently posted on “How Shopping Momentum Leads to More Shopping” Once you make that first purchase “you’ve opened the floodgates.”

Dieting- or, more generally, controlling or giving up something else in your life, makes you more likely to make an impulse purchase. Research shows that you only have so much self control. It can be depleted by other self control efforts in your life, such as dieting or quiting smoking.

Over-Optimism- A recent study found that extreme optimism leads to more impulsive spending habits. On the other hand, “small doses of optimism can lead to wise financial decisions.”

Sadness- Increases our chances of wanting to spend as a way of making a change in our lives. A study by Lerner, Small, and Lowenstien(2004), showed that “people are more likely to sell at a lower price, or buy at a higher price.”

Personality Type- Research done by A.G. Herabadi in 2003 and others concluded that “there is …a distinct impulse buyer personality profile…Impulse buyers are more luckily to have these traits:

• lack of deliberation and planning
• unreflective in thinking
• the urge to be active
• impulsivity and anxiety due to the apprehension of making wrong decisions
• need for excitement and novelties
• the tendency to disregard possible negative consequences.

Controlling Impulse Purchases

What does all of this tell us?

Be aware of what your weaknesses are- know when you’re most susceptible to blowing your hard earned money, and stay clear of the stores (including on-line ones!)

Wait- Make a rule that you have to wait a minimum of 48 hours before making any major purchases. We all know this, but I think it bears repeating.

Leave your credit card at home- you can always come back and get the item the next day.

Set dollar limits- then you can go a little wild, but not get in over your head.

Make wallet impulse buying cards- saying things like STOP! or YOU’LL REGRET IT! It might slow you down a little.

Save your receipt- if all else fails, you can usually return those great shoes or that cool purse you had to have in the moment.

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