Black Friday has evolved from a simple post-Thanksgiving sales event into a global shopping phenomenon. It marks the unofficial start of the holiday season and generates a frenzy of consumer activity.
Understanding the psychology behind Black Friday is crucial for sellers, as it sheds light on the complex motivations, triggers, and behaviors that drive consumer participation. This article delves into these psychological aspects, offering insights that can help retailers adapt and thrive in an increasingly competitive market.
Black Friday, traditionally held the day after Thanksgiving, has become one of the most anticipated shopping events of the year. It marks the unofficial start of the holiday shopping season, with retailers offering deep discounts and exclusive specials across a wide range of products.
What began in the US has already spread throughout the world, drawing millions of consumers eager to take advantage of the significant savings on Black Friday. Shoppers often plan their purchases for weeks and endure long lines or repeatedly refresh their browsers to secure the best deals.
For retailers, Black Friday is more than just a day of increased sales; it's a pivotal moment to capitalize on the heightened consumer demand that characterizes the holiday season. This event allows retailers to clear out old inventory, introduce new products, and attract new customers.
Where does the term "Black Friday" come from? And how did it grow to be such a powerful force in culture? Here's a short history:
The Black Friday craze was caused by people rushing to buy holiday presents the weekend after Thanksgiving. The chaos inspired Philadelphia and New York police to call those days Black Friday and Saturday because of all the extra work the chaos created. Retailers did not enjoy the negative connotations, but the name stuck.
By the 1980s, retailers nationwide adopted "Black Friday" but wanted to drop the negativity. Instead, they related the term to an old accounting practice of marking losses in red ink and profits in black. They claimed that most retailers operate "in the red" throughout the year and only profit during the holiday season, which is why they began accepting the term Black Friday.
In the 1990s, significant discounts and extended hours became the norm as Black Friday was officially declared the biggest shopping day of the year. Merchants wanted to capitalize on it by creating more deals to attract crowds of shoppers. The 2000s saw the beginning of online Black Friday sales as a new channel for even larger profits.
As online shopping became more established, "Cyber Monday" was introduced in 2005 to encourage online shopping the Monday after Black Friday. It was a marketing strategy that successfully extended the shopping frenzy.
Black Friday gained global popularity in the 2010s because international corporations wanted to replicate the high sales seen in the US. Many retailers began hosting multiple shopping events throughout November, cementing Black Friday’s status as an international hit.
Getting a complete idea of how popular and effective the event is as a marketing opportunity can be challenging. Here are some Black Friday statistics that can help paint the full picture:
Over the five-day holiday weekend from Thanksgiving to Cyber Monday, 200.4 million consumers made purchases, breaking the previous record of 196.7 million.
This figure exceeded the National Retail Federation's initial projection of 182 million shoppers by over 18 million. The statistic highlights Black Friday’s continued dominance as the year’s peak shopping day and demonstrates widespread consumer engagement and anticipation.
In 2023, Black Friday remained the most popular day for online shopping in the US, with internet shoppers increasing by over 4% from 2022’s 87 million. Less than a third of consumers planned to shop in-store, with nearly 45% citing overcrowded stores as a key deterrent.
E-commerce has clearly become the preferred option, yet the event's popularity persists both online and in-store. Sellers can maximize their reach by adopting omnichannel strategies to cater to both types of customers.
As the world's biggest online marketplace, you can expect Black Friday on Amazon to be a major event. And it certainly was in 2023.
Amazon conducted astonishing business during its 11-day Black Friday sale event in 2023. The Amazon search algorithm facilitated over 1 billion items being sold! The immense scale of online shopping during this period reflects how effective extended sales can be.
You may expect the massive sales to hurt the retailers' bottom lines, but the average amount spent per customer was $397.64 in 2023. That's probably well over what they typically earn per customer on any given day. Black Friday customers are willing to spend substantial amounts on discounted prices.
Electronics and clothing were the two most popular product categories during the holiday shopping season in 2023, followed by furniture, groceries, and toys.
Together, these five categories were responsible for more than half of the surge in sales experienced in November. Savvy shoppers emerged this year, eager to maximize savings during major sales events, with a strong preference for tech, practical goods, and gifts for the little ones.
You may wonder what drives people into such a frenzy during Black Friday. Why does competition become so fierce when other promotions fail to get even close to the same traction? The psychology of Black Friday is surprisingly similar to more common sales, just amplified to the extreme:
Impulse buying is spontaneous, unplanned purchasing driven by emotions and instant gratification. Emotions are high, and prices are low during Black Friday, which makes impulse buying rates soar. Reflecting this tendency, the majority of shoppers in the United States regret at least one of their past Black Friday purchases.
Stores capitalize on this desire by surrounding the customers with many deals on Black Friday. Common tactics include:
Scarcity tactics create a sense of urgency by limiting product availability, prompting consumers to act quickly to avoid missing out. This strategy taps into the fear of missing out (FOMO) and significantly impacts purchasing decisions, especially during high-pressure events like Black Friday.
Retailers employ several scarcity tactics to drive sales:
Social proof is a psychological effect where people look to the actions and opinions of others to guide their own behavior.
During Black Friday, social proof is a powerful driver of consumer behavior, as shoppers are influenced by what others are buying, reviewing, and recommending. This herd mentality can lead to increased sales, as consumers are more likely to purchase popular or well-reviewed items.
Retailers leverage social proof during Black Friday in several ways:
Emotional gratification and rewards refer to the positive feelings consumers experience when they secure a good deal or make a desired purchase. Black Friday shopping is often driven by the thrill of finding bargains and the satisfaction of getting something at a lower price.
This emotional high can lead to increased spending as shoppers chase the rewarding feeling of each purchase. Retailers further enhance this emotional gratification through the following:
Just as Black Friday once evolved from a negative term and a US-only event, it continues to change today. Staying ahead of these shifts can allow your business to capitalize fully on this retail spree.
Retailers like Amazon and Walmart have begun rolling out Black Friday deals weeks in advance, offering special discounts and promotions starting early in November.
This strategy helps manage the logistical challenges of a single-day sales surge while keeping consumers engaged over an extended period. By spacing out the sales, retailers can also smooth out inventory and shipping demands, providing a better overall shopping experience.
The continuing adoption of AI tech is enhancing how retailers approach Black Friday marketing. By analyzing vast consumer data, retailers can create highly targeted online marketing strategies that resonate with individual shoppers.
For example, AI-driven recommendation engines suggest products based on past purchases and browsing history, increasing the likelihood of conversion. Additionally, data analytics help retailers anticipate demand trends, ensuring they stock popular items and avoid shortages, ultimately leading to higher customer satisfaction.
Influencers on platforms like Instagram, TikTok, and YouTube often showcase exclusive Black Friday deals and offer promotional codes to their followers. Having replaced celebrities as the most trusted endorsers by younger generations, influencers are likely to play a more active role in 2024 Black Friday marketing.
This approach is particularly effective because it leverages the trust and connection influencers have built with their audience. Retailers also use online ads to create a sense of urgency around limited-time offers, driving more traffic to both their online and physical stores.
Phones have emerged as the most popular device for online shopping, beating laptops and tablets. In response, retailers are optimizing their websites and apps for mobile users to provide a seamless shopping experience.
Features like mobile-exclusive deals, easy payment options, and real-time notifications about sales events are designed for on-the-go shoppers. This convenience allows consumers to take advantage of Black Friday deals from anywhere, driving higher engagement and sales.
Black Friday is perhaps the most potent example of how consumerism continually evolves, shaping and reshaping retail globally. To thrive during these fiercely competitive periods, sellers must stay attuned to shifting trends. As the biggest shopping day in the world continues to grow, adaptability and forward-thinking are key to success.
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