Afraid of missing out: facts and myths about Black Friday

Black Friday is in full swing, and the ‘best deals ever’ are everywhere you look. But how beneficial are these offers really? Are we being collectively duped? And do we end up spending more than we planned? Univers explored four claims about this global shopping frenzy. ‘Black Friday appeals to our greed.‘

Were you able to resist Black Friday, or are you still keeping an eye on that one great deal? The fact is, Black Friday, a phenomenon originally designed to spread out the December shopping rush, continues to stir debates. Are the deals really as good as they seem, or are we being misled by fake discounts? How harmful is all this consumption for the environment? And more pointedly, what does the Black Friday hype reveal about human behavior? Univers investigated these questions for you.

Black Friday Deals Are Based on Misleading Pricing Strategies

Coffee machines with up to 70 percent off and a brand-new television for only 299 euros. During Black Friday, amazing deals pop up everywhere. But are these deals too good to be true? The Netherlands Authority for Consumers and Markets (ACM) is critical and warns bargain hunters about fake discounts.

Lesley Haerkens, a PhD candidate at Tilburg School of Economics and Management (TiSEM), studies the impact of pricing and advertising on our consumption. She explains that fake discounts do indeed occur: ‘Black Friday deals are often associated with misleading pricing techniques, such as increasing prices just before the discount period to suggest larger reductions.’

‘Although research by the Consumers’ Association in 2019 shows that many online retailers are guilty of this, stricter regulations have been introduced. Since January 2023, a legal amendment requires companies to use the lowest price of the last 30 days as the ‘original’ price.’

However, Haerkens points out that there is still a legal gray area in which companies can bypass these rules. ‘To protect yourself from these pricing techniques, you can use price comparison websites like Tweakers and CamelCamelCamel, which also show historical price data.’

Black Friday Encourages Overconsumption and Harms the Environment

Recent research by ABN AMRO Bank shows that the number of bargain hunters during Black Friday is increasing: in 2022, 39 percent of consumers planned to make a purchase, while in 2024, this figure rose to 59 percent. Despite the growing popularity of more conscious alternatives like Green Friday, the shopping frenzy remains popular.

Odette Bruls, a professor of marketing and consumer behavior, believes that many unnecessary purchases are made during Black Friday. However, she notes that the relationship with overconsumption is more nuanced. According to her, consumers tend to anticipate Black Friday: ‘People postpone certain purchases until the Black Friday deals arrive.’

‘As a result, companies often see a sharp decline in sales after the promotional period.’ Bruls believes this reduces the extent of overconsumption. ‘But,’ she adds, ‘overconsumption is inherently harmful to the environment.’

FOMO and Dopamine Drive Black Friday Spending

Discounts ‘up to 70 percent’ and ‘while supplies last’ messages are widely used by companies to attract consumers. According to Bruls, Black Friday strongly taps into the human trait of greed. ‘When consumers see deals during Black Friday, they may perceive it as a loss if they don’t act on them.’

‘It fuels the feeling that you’re ‘crazy if you don’t buy this now.’ That’s why many unnecessary purchases are made during Black Friday.’

Economic psychologist Karlijn Hoyer also observes that people become greedy during Black Friday: ‘Greed is an insatiable desire for more. While some people are naturally greedier than others, anyone can exhibit greedy behavior in certain situations. Black Friday is a good example of this.’

Hoyer explains how stores take advantage of this: ‘Retailers emphasize the limited stock of popular products. These tactics, combined with numerous offers, tempt people to buy more, even if they don’t need the products.’

Fear of missing out (FOMO) plays a big role in this. Securing a so-called super deal also provides a brief dopamine boost, which feels good. This can lead people to buy even more to maintain that pleasant feeling.

Consumers Spend More Than Planned During Black Friday

Bruls and Hoyer have explained why people become greedy with Black Friday deals. But does that mean they spend more money?

According to Jorna Leenheer, an assistant professor at TiSEM, the situation is more nuanced. ‘November is traditionally a quiet month for retailers, leading up to the holiday season in December. Black Friday was originally introduced to help spread out this peak.’ Like Bruls, Leenheer observes that people anticipate Black Friday deals and, as a result, do not necessarily spend more money immediately. ‘Whether consumers actually buy more than they originally planned is hard to say.’

However, the expectation is that extra purchases around Black Friday will decrease in the future, as consumers learn to manage the hype. ‘They may delay purchases until Black Friday or buy items they would have purchased later anyway. Many consumers also wait for January sales.’

_Advertentie.