The Psychology of Consumption: Decoding What Drives Our Purchasing Behavior

CONSUMER BEHAVIOR

Aug 23

After years of operating in a linear system designed to maximize the production and consumption of clothing, fashion has finally begun to acknowledge its contribution to the climate crisis. As a response, the industry is making strides to address social and environmental issues.

Scientists are innovating new materials to lessen the environmental footprint of existing textiles. Brands are integrating digital IDs and DNA markers into their products to support circular systems and stay connected to their products post-sale. Tech companies are enabling peer-to-peer resale platforms to extend the life of existing garments, and innovative companies are championing textile-to-textile recycling, attempting to scale the operations of turning old materials into new feedstocks. However, for these initiatives to have an impact, customer participation at every step is vital.

In order to scale innovative materials, customers must consistently buy and show a preference for next-gen materials rather than those made with polyester. For circular systems to work, customers need to regularly send unwanted items to brands or resale platforms in order for those products to be given another home or another life as new material feedstock.

While the onus shouldn't solely rest on consumers to rectify fashion’s broken system, consumers play a crucial role in the industry's sustainable future. After all, it was consumer interest and consumer’s desire for sustainably-made products that drove sustainability from niche to mainstream. But is this desire actually impacting consumer purchasing decisions?

What influences us to buy the things that we buy?

Report after report reveals that consumers, GenZ in particular, express a strong preference for environmentally sustainable and ethically produced products and are willing to pay a premium for them. However, there often exists a gap between their responsible shopping aspirations and actual purchasing decisions.

In a 2021 Zalando report exploring the attitude-behavior gap between consumers' sustainability intentions and actions, the company found that while 60% of survey respondents said transparency is important to them, only 20% actively seek out information as part of the purchasing process; 53% believe ethical labor policies are important, but only 23% investigate what those policies are; 58% believe they should understand the product, including the materials, but 38% regularly check the label for information; and 60% of consumers say repair, second-hand and sustainable disposal are important to them, but only 23% repair their clothes and 25% regularly buy second-hand.

Why is this?

What really influences us to buy the things that we buy? If we know the impact our clothing and shopping decisions have on people and the planet, why do we still buy the viral TikTok high-rise wide-leg jeans or checkered print tank top? Why do we keep finding ourselves placing orders for “random things” Instagram strategically showed us on our explore feed?

The reality is, though we may want to believe that our values determine our purchasing decisions, they aren't the only factors at play. People make purchasing decisions based on a variety of factors; however, price and size accessibility aside, according to fashion psychologist, consultant, and author of Big Dress Energy, Shakalia Forbes-Bell, there are five main reasons (in no particular order) why people buy:

Self-Expression and Identity: Clothing is a way for individuals to express their personality, identity, and values. People often buy clothes that reflect their personal style, cultural background, or social groups they identify with. Psychologists have identified a concept called ‘product-image congruity,’ which posits that individuals are attracted to products that mirror their own self-concept or the symbolic meanings they identify with. Essentially, this means that if we come across an item with similar symbolic meanings to the ones we identify ourselves with, we're drawn to it because it acts as a form of self-expression.
Retailer Persuasion Tactics: Retailers employ a myriad of persuasive tactics to entice purchases. Store layouts are designed to guide customer flow, ensuring exposure to a variety of products. Lighting and music create inviting atmospheres, while limited edition collections evoke a sense of urgency and exclusivity. "Last chance to buy" marketing triggers fear of missing out, and loyalty programs reward repeat purchases, fostering a cycle of buying. These meticulously crafted strategies often lead to impulsive purchases of items that may not be necessary or genuinely desired, revealing the potent impact of retail psychology on consumer behavior.
Insecurities: Insecurities can significantly influence purchasing behaviors, especially in the realm of clothing and fashion. Studies have shown that the more insecure you feel, the more likely you are to use shopping as a distraction. Individuals might buy clothing to compensate for perceived inadequacies. For instance, someone insecure about their body image might purchase clothing perceived as slimming or trendy to feel more attractive or socially accepted. Insecurities might drive people to conform to prevailing social or fashion norms. They may buy clothing that helps them fit in with a particular social group or adhere to current fashion trends to avoid standing out or facing social scrutiny. Some might associate certain brands with a desired image or status. Buying clothing from reputable or luxury brands could be a way to alleviate insecurities and attain a sense of higher social standing or self-worth. Likewise, individuals may seek validation from peers or social media followers through their clothing choices. Purchasing and showcasing trendy or designer clothing can be a way to seek approval and alleviate insecurities. Insecurities may trigger impulse buying as a coping mechanism. The instant gratification from a new purchase can provide temporary relief from negative feelings, although this may not address the underlying insecurities.
Social Acceptance and Belonging: As social beings, we are genetically programmed to align ourselves with others, a tendency vividly illustrated when we buy into the latest trends. Individuals may be swayed by social norms, peer pressure, or a desire for social acceptance in their clothing choices. They might purchase clothing that enables them to fit into specific social circles or adhere to the prevailing styles and expectations of their peer group. When we follow the latest trends through our purchases, we tap into the cultural zeitgeist, a shared experience that provides a sense of belonging. This, in turn, only encourages us to buy more, further cementing our place within our social milieu.
To Feel Good: The act of shopping serves as more than just a means to get new things; it's often a respite from the routine grind that can leave one feeling drained and stressed. The anticipation of shopping triggers a surge in dopamine, a neurotransmitter associated with pleasure and reward, as revealed by MRI studies on the brain. This 'retail therapy' phenomenon is not merely a colloquial term but has a basis in our neurochemistry. The euphoria experienced during a shopping spree isn't necessarily tethered to the actual items being acquired but rather to the act of shopping itself. It's about the journey through aisles, the tactile engagement with merchandise, and the envisagement of oneself wearing the new jacket. The momentary escape from life's monotony, coupled with the potential of getting something new, lends shopping its therapeutic charm. So, when individuals venture out or browse online stores to shop, they are essentially chasing a dopamine high, seeking a haven of joy amidst the daily hustle.

Does our desire to fit in and feel good about ourselves outweigh our commitment to people and the planet?

Insight from the Zalando report found that while customers care a lot about sustainability when it comes to fashion, there are gray areas. The report indicates that while 72% of respondents prioritize reducing food, plastic, and water waste, only 54% extend the same concern to fashion. One reason for the disconnect outlined in the report is people’s relationship with fashion. Some 65% of women and 56% of men feel their self-confidence is “strongly influenced” by their clothes.

From a psychological standpoint, the observed attitude-behavior gap between consumers' sustainability intentions and actions makes sense. To some, sustainable shopping (or abstaining from shopping) often represents a trade-off between short-term and long-term benefits. This trade-off can be challenging as individuals tend to value immediate rewards over long-term gains. Research shows that we perceive things that are psychologically distant more abstractly compared to things that are psychologically close.

For example, the repercussions of climate change, manifested through weather disasters such as wildfires or extreme storms, predominantly affect regions in the global south. However, individuals in the global north, who are often implicated in overconsumption, tend to be geographically distant from these disasters. This geographical divide can result in a detachment where many in the global north are not compelled to confront the specifics of climate change, treating it as an abstract concept instead. The immediate impacts of their consumption habits are not as apparent, contributing to a continued attitude-behavior gap in sustainable shopping practices. In a similar vein, the immediacy of satisfaction derived from purchasing trendy, affordable clothing is a powerful psychological trigger. The instant gratification derived from such purchases often overshadows the long-term environmental and ethical considerations.

Similarly, social norms and the status quo can deter people from making more sustainable choices. The desire to fit in and conform to prevailing fashion trends can override sustainability concerns. While sustainability is important to them, some consumers don't want to give up the short-term feelings, emotions, and potential social status associated with buying into trends and uninhibitedly expressing themselves through fashion for the abstract purpose and long-term benefit of doing better for the planet and potentially lessening climate change.

Instead, 44% of participants believe that their sustainable choices in other parts of their lives, like recycling and eating less meat, compensate for their less sustainable shopping choices. Still, some 56% of respondents would make some sacrifices to be more sustainable — although they would not completely change how they shop.

Shifting Consumer Behavior: Moving from Intention to Action

So, where do we go from here? How do we shift consumer behavior when our brains are literally hard-wired to enjoy shopping and newness? How do we change consumer behavior when clothing and fashion are attached to many psychological factors?

First and foremost, while there's often a disconnect between consumer intentions and actions, this shouldn't serve as an excuse for brands to shirk their responsibility towards fostering a more sustainable future. Instead, the industry should leverage the principles of consumer psychology to align with shoppers' short-term objectives, making sustainable choices more appealing, attainable, and accessible.

Addressing the deeply ingrained habits and psychological gratifications associated with shopping, especially in fashion, requires a multifaceted approach that combines individual, societal, and systemic interventions.

What would happen if we considered psychological factors when communicating the importance of sustainability rather than expecting to change consumer behavior with jaw-dropping facts and ideas that are too abstract to wrap your head around?

Taking psychological factors into account when communicating the importance of sustainability could lead to more effective and resonant messaging. Perhaps If we want to change consumer behavior and encourage participation in sustainability initiatives, instead of preaching “buy less, buy better,” we need to start thinking about consumer psychology and appeal to the psychological factors of why we buy what we buy.

By adopting a psychologically informed approach, the communication around sustainability can become more effective, leading to increased awareness, understanding, and, ultimately, a higher likelihood of positive behavioral change. This nuanced approach acknowledges the complexity of human behavior and leverages psychological insights to design more effective sustainability communications, promoting a culture of conscious consumption and environmental stewardship.

In part two, we'll uncover how to shift consumer behavior and scale sustainability initiatives with psychology.