Brand loyalty and compulsive buying

According to the online dictionary, brand loyalty could be defined as “when consumers become committed to your brand and make repeat purchases over time”. Brand loyalty, literally, for the brand it self, it means successful. However, for the customers, sometimes, it means compulsive shopping. When you ask yourself, what brand you are always loyal to, you might find those brands have many other rival brands. Yet, you did not even consider these rival brands even they are good. That’s the influence of brand loyalty.

We make decision every day, ranging from signing a contract to buy a three dollars latte. You may always think you’ve done enough research about the market and you did price comparisons, and you made a right decision. Step back and think, sometimes you might be wrong.

Buyers, especially girls, they are easily attract to a specific brand. And the reasons they are loyal to the brand because they simply love the brand, style or even the models. In particular, the luxury brands are the most easy to build the brand loyalty because of its reputation. People will logically think that their products are the best because they gained huge reputation.

Sometimes, when you simply think the products are the best because you are not aware how much those products are valued. It’s hard to define how much a pair of Chanel shoes valued because value of the brand is priceless. And people cannot assess the value by comparing it to things that are just in the environment next to it. However, just assessing the cost of a pair of Chanel shoes, it might just be $100. So, here is a question? What do you buy? Do you buy a pair of shoes or the brand?

We are not against the luxury brand, here we just want to let you know sometimes what you buy might not be valued as their price tag shows. You have to be aware the purposes of shopping, buying the physical products or brand itself?  Therefore it is important for you to think wisely before purchasing the products.

In the next blog, we are honored to invite one of our Facebook fans to tell her compulsive shopping experience. And you might find yourself the same in the story. Please stay tuned with Shopwise Shopaholic! 🙂

Stats about how social media influence purchase behaviour

Social media plays an important role in influencing people especially the Millennials (born between 1981 and 2000), their purchasing decisions. According to research, by 2017, these consumers will have more spending power than any generation has ever had, but they shop differently, are hyper-social and endlessly curious about what other people are doing. As a savvy consumer, it is important to note that how social media influencing the purchase behaviour.

There followings are some statistics show how social media influences purchasing decisions:

• Consumers are 71% more likely to make a purchase based on social media referrals
• Out of 53% of consumers who said they use Twitter to recommend companies or products in their Tweets, 48% bought that product or service
• 15,100,000 consumers go to social media channels before making purchase decisions
• 74% of consumers rely on social networks to guide purchase decisions
• Facebook is the most effective platform to get consumers talking about products
• 79% of consumers like a Facebook company page because it offers discounts and incentives
• 32.5% of women say they’re influenced by special offers on Facebook vs 29% on Twitter
• 44% of social media savvy women said their trusted/favorite blogger influences their purchasing decision
• 91% of people have gone into a store because of an online experience
• 89% of consumers conduct their research using search engines

Check out the infographic below for some interesting facts:

(Source: http://news.yahoo.com/blogs/advertising/infographic-top-10-factors-influence-online-purchase-decisions-233250403.html)

As a savvy consumer, it is important for you to think carefully before you purchase any products. Although social media plays an important role in influencing people’s purchasing behaviour. But it is important for people to shop wisely and don’t buy products that you don’t actually need due to the good comments on the social networking sites.

References:

http://www.salesforcemarketingcloud.com/blog/2012/11/20-stats-about-how-social-media-influences-purchasing-decisions/

http://socialmediatoday.com/rgbsocial/1532766/unignorable-stats-about-how-social-media-influences-purchase-behaviour

Advertising Tricks That Trigger Impulse Buying

Many consumers think that they are good at ignoring advertisements and believe themselves are savvy consumers. However, according to the recent research shows that Australians are indeed paying at least a modicum of attention to online advertising and found out that 59% of Australians pay attention to online ads. In this blog post, we will be discussing about five advertising tricks that trigger impulsive buying. By knowing them and keep your spending under control! 🙂

2. Must-Haves

Advertisers are appealing to our sense of wanting to be equipped with the essentials, yet most of the items advertised this way are far from essential. Remember don’t just blindly slap down your plastic because someone says you must.

3. Discounts on Multiples e.g. Buy One, Get the Second 50% Off!!! Buy Two, Get the Third Free!!! …

These are a real cheat, as the company make you think you are spending less, when you are really spending more. Tips: decide how many you really need, and when you need them. And also make sure the discounted price isn’t a minuscule saving compared the hassle of buying multiples.

4. Rebates e.g. Mail-in Rebate!!! Spend $50 Now, Get $25 Off Your Next Purchase!!!…

Rebates are potential discounts, that have a built-in time delay, meaning the seller has your money for the time you are waiting for your rebate. They also have many hidden terms and conditions that may mean you never get the discount at all. Remember don’t buy anything with a rebate unless you wanted that exact item anyway, and were willing to pay full price for it which you probably will anyway. 😉

Reference:

http://addictions.about.com/od/glossar1/tp/Five-Advertising-Tricks-That-Trigger-Impulse-Buying.htm

A CALL FOR ATTENTION: It’s ONLINE shopping

There is no doubt that this is an era of digital. Everyone is online, it not only means efficiency, time-saving, but also is means mobility. ASOS, online fashion retailer has Australia as its single largest foreign market – statistic shows Australian makes purchase on ASOS website every 6 seconds. According to Roy Morgan Research, the popularity of fashion products is increasing, which become the second-most popular category of online shopping (after Entertainment and leisure) in Australia.

So, why online shopping is that popular recently? Why people want to buy fashion products via Internet. Here are three basic reasons: save money, time-saving and various choices.

1. Online shopping is an alternative choice to save money for most online shopping buyers. Generally, people can go shopping online with a considerable discounts. For example, buyers can compare the prices via different shopping websites and makes final choices.

2. People whom like shopping online because it saves time. Buyers don’t have to walk to different retail stores and there are shopping websites which contain most of the brands they prefer.

3. Online shopping is more exciting than shopping in real store. People have various choices of clothes. With a lot of international brands opening their online store, people can purchase more comprehensive brands via online. Thus, online shopping is without the restriction of location and nation.

BUT, sometimes you may realise what you bought is not exactly what you want, or not fitting on you. Thus, how to shop online wisely? How to be savvy shoppers, we will provide some tips below:

1. Buy on budget, buy those fashion products when it is needed and resist emotional spending triggered by the sign of “on sale”.
2. Read other buyers’ review and comments and be aware of return policy and warranty.
3. Value what you buy is exactly match its price. For example, is it long lasting products or just trending products?
4. Read the basic description of what you intend to buy, maybe you will find the size or the material is not fit on you.
5. Make a plan before shop, and it helps you to reduce extra spending.

Reasons behind compulsive shopping

In the previous blog post, we defined the term “shopaholic” and discussed the different symptoms of a shopaholic. In this blog post, we will be discussing about the reason behind compulsive shopping and provide tips and assistance for shopaholic.

The most causes for compulsive shopping are psychological. Compulsive shoppers maybe have emotions of loneliness, depression, feel out of control in particular area, and seek to spend money in order to relieve the stress. Therefore spending addiction is a symptom or warning sign that there are deep-rooted feelings one is trying to avoid facing. Therefore by shopping help numb those troubling feelings for just a while. The following are some psychological conditions which associated with compulsive shopping which includes:

• Emotional deprivation in childhood
• Inability to tolerate negative feelings, pain, loneliness, boredom, depression, fear, anger
• Need to fill an inner void – empty and longing inside
• Excitement seeking
• Approval seeking
• Perfectionism
• Genuinely impulsive and compulsive
• Need to gain control

Some behaviours and emotions have been associated with as potential causes of shopping addiction including:

• A reaction to disappointment, stress, anger or fear by shopping
• A feeling that one’s spending habits are out of control and are causing friction or conflict in one’s family, relationship
• Feeling a sense of euphoria as well as anxiety while shopping
• Experiencing a sense of getting away with something forbidden while shopping
• Feeling severe guilt or remorse about having gone shopping, especially if it contradicts promises made to one’s self or a loved one
• Buying things that are never or almost never used—in other words, buying for no reason other than to spend

Getting help

People suffering from compulsive buying disorder can seek shopping addiction treatment from a treatment center, therapist or psychologist despite the lack of a quantified, well-defined diagnosis since the underlying issues are indeed psychological.

There following are some treatments for compulsive shopping:

• Reduce temptations
• Make lists before going to the store; buy what you need only
• Take a trusted friend
• Wait so many hours before purchase
• Do you need this or do you just want it?
• Develop other ways to handle emotions
• Develop fun things to do
• Learn to ride through urges and preoccupations
• Develop habits in stores

References:

http://www.addictionhelpcenter.com/causes-for-compulsive-shopping/

Are you a shopaholic?

In the previous blogs, we have identified the different types of shopping; and we focused on the recreational and impulse shopping. In the following blog posts, we will be discussing the truth about shopaholics, the causes and ways to shop wise if you are a shopaholic.

According to the dictionary online, shopaholic could be defined as “a person who shops compulsively or very frequently”. Shopaholics could also be known as compulsive shoppers or shopping addicts, which may suffer from a psychiatric disorder which known as compulsive buying disorder. All additions have the same basic symptoms such as obsession, compulsion, loss of control and continued use in the face of negative consequences. Primarily, compulsive shopping thought to be mainly affect women. However, it is now believed that affect both genders equally.

According to the research by Australian Psychological Society, found out that the figures released by the Australian Consumers’ Association reveal that almost half of all the Australian households are in debt. And there is an increasing number of compulsive shopping. In fact, recent research found out that one in 12 Australian shoppers are suffering this disorder. Let’s have a look at the most five common symptoms of a shopaholic.

1. Shopping causes intense feelings

Suffering from compulsive buying disorder would have a sense of excitement before a purchase, an inability to resist the urge to shop and a rush or sense of reward while shopping, despite any negative consequences of their actions.

2. Shopping despite feelings of distress and guilt

People may have feelings of anxiety or tension while they try to resist the urge to shop.

3. Spending is impulsive and excessive

Compulsive shoppers are more likely to shop excessively and impulsively, typically making their purchases on credit.

4. Financial problems and big debt

5. Spending causes relationship problems

Compulsive shoppers often have problems in personal relationships as well as financial issues. According to research by the World Psychiatric Association found that nearly 70% of compulsive shoppers admitted that their behaviour based problems in their relationships.

Don’t worry if you are a shopaholic, but be a wise one! In the upcoming blog posts, we will be discussing about the different factors leading people to shop unwisely and tips to shop wisely. Please stay tuned with Shopwise Shopaholic! 🙂

Reference:

http://health.howstuffworks.com/mental-health/5-signs-of-shopaholic.htm

Reasons we impulse buy

Following up on the previous blog post, we discussed different types of shopping are and we underlined why recreational shopping happens. Today, this blog will demonstrate what impulse shopping is and how to avoid impulse shopping.

What is impulse shopping? Impulse shopping could be defined as spur of the moment, unplanned decision to buy things, made just before a purchase. According to the statistics, chocolates, soft drinks and snack food are three main confectioneries that lead to impulse shopping.

Moreover, there are three key factors which lead people to impulse shopping. The first reason is the discount season. So GIRLS, please be caution of your wallets during the discount season, especially in June and December (Christmas sales!!).

Another factor which drives impulse shopping is the credit card culture. You often think you can buy something first and pay it later. Especially for ladies, they often impulse in department stores in the cosmetics and clothing section.

Novelty is another impulse shopping driver. For example, if you are a fan of brand, you will follow their every new collection. When the brand launches something new, you will be attracted to buy it.

Ironically, impulse shopping helps the retailer and brands to expand their sales. And the brands discovered the ways to stimulate people impulse shopping and formulate their thinking towards their products. For example, they often give special offers, as a tactic to attract people to shop.

In order to avoid impulse shopping, you should always ask yourself “Do you actually need them?” or calm yourself down first then make decisions after you have thought it rationally.

Why do you shop?

“Why do people shop?” People will simply answer “to buy things” without any hesitation.

Firstly, people do shopping for basic necessities like food, clothes and other home appliances. In addition, people will feel completed when they buy things. Therefore, there are amounts of reasons why people love shopping: on sale, self-expression, beauty, relaxation, brand-loyalty, relieve stress…

There are basically four types of shopping: recreational shopping, listing shopping, item shopping and impulse shopping. In today’s blog, we will discuss what recreational shopping is. And you can try to see whether you are fit into this category.

Recreational shopping, just as its name implies, people do this shopping just for relaxation or entertainment. The most common reason people say beyond “to buy things” is relax. Lots of my girl friends like to use shopping as a way to relax and relieve their study or work stress. They just try to explore beauties and fantasies such as window-shopping or online shopping.

This type of shopping based on the trends. Prior to shopping, people often try  to keep up with trends. Therefore, this type of shopping often happens in clothes, cosmetics and accessories.

There is another function of recreational shopping is socialising. People can accompany with their friends to go shopping and have casual talking. They probably don’t intend to buy anything, they just use shopping as a reason to socialise with friends.

People often think window-shopping or online shopping is just a way of relaxation because they are not really leading to a purchase. However, brands and retailer sometimes use recreational shopping to attract the customers because they believe they will come back to buy it later when they have already experienced the benefits of the goods.

When you finished reading this article, do you think you are a member of recreational shopping fans? Just be caution, sometimes brands use this to make you spend more money and you don not even realise it!!!