Where does it all originate from?
Humans are social creatures and our decisions are mainly based on group reactions. Human nature has always been like that throughout the history of mankind, whether we make decisions to hunt or to determine where to live. It seems that society’s opinions matter and somewhat influence our own. And now, individual consumption is also affected by one another, especially in the era of technology development, where social media dictates consumer preferences and purchasing habits.
Do social norms really matter?
Social or cultural norms are when people do something to seek approval from society or to match the appropriateness of their surrounding culture. These are expectations about what everyone considers “normal” or “acceptable”. For example, owning a car in many cultures is a sign of luxury and economic success, often indicating that the owner has a high social status and is well-respected in life. Therefore, in such a society, the purpose of purchasing a car is almost directly linked with gaining recognition from others. This does not only apply to owning cars but also to other luxury goods such as high-end clothes, bags, or gadgets. This creates an invisible peer pressure that consumers should chase and buy these goods, to please others’ expectations. (Alemohamad, 2023)
Comparison is the theft of joy
Source: https://www.vecteezy.com/vector-art/2930427-social-comparison-anxiety-compare-yourself-to-others-discourage-of-failure-loser-or-self-motivation-problem-concept-sad-depressed-man-stand-on-his-hand-compare-himself-with-winning-colleague
Sometimes, it is the people surrounding us that affect our consumption mentality, in both direct and indirect ways.
Direct influence is when individuals receive guidance through recommendations and shared experiences with others. This means that their buying decisions are directly guided by their peers. For example, when their close circle such as family and friends adopt the use of the equipment in Walmart, the person will be more prone to keep buying the services at that provider, even if the quality eventually downgrades. (Gunawan, Rahmania and Kenang, 2023)
Meanwhile, indirect influence is when an individual decides to purchase based on observing how their close ones behave. Witnessing their purchasing behavior for a long time eventually leads to the person’s decision to buy the product, solely because of conformity to others. This is deeply rooted in human nature to seek social acceptance, and to be part of the group. An example would be when children ask their parents to buy them a car, just because their friends drive them to school. They probably do not need a car and can take other means of transportation. However, their decision is driven by the fact that their classmates at school all have one, so owning a car is a way to be perceived as “cool” or high status, making it easier to fit in. (Gunawan, Rahmania and Kenang, 2023)
Social media influences
We can not ignore the role of social media in this era in determining the consumption habits of individuals, especially when everyone is relying on it daily. Various platforms have arrived, e.g. YouTube, TikTok, Facebook, Instagram, etc. to accommodate the need for entertainment and expand human connections globally. As a consequence, influencers or key opinion leaders (KOLs) are born, a byproduct of this virtual landscape. They are idolized by every age group but mostly worshiped by youngsters. These online famous stars regularly set the trend for others to follow, including buying products from sponsored companies. It is truly an efficient marketing tactic to boost sales, as consumers rush to purchase the same thing as their KOLs. This is explained by a psychological concept called fear of missing out or “FOMO”. When social leaders approve a product, their fan base perceives it as a justification for high quality and, hence eager to purchase it. (Kowalewicz, 2022)
References
Alemohamad, M.H. (2023). The Power of Social Norms on Consumer Behavior: Understanding the Impact. [online] Medium. Available at: https://medium.com/@mhalemohamad/the-power-of-social-norms-on-consumer-behavior-understanding-the-impact-bc27db5774b0 [Accessed 9 Nov. 2024].
Gunawan, C.M., Rahmania, L. and Kenang, I.H. (2023). The Influence of Social Influence and Peer Influence on Intention to Purchase in E-Commerce. Review of Management and Entrepreneurship, [online] 7(1). doi:https://doi.org/10.37715/rme.v7i1.3683.
Kowalewicz, R. (2022). How Social Media Impacts Consumer Buying. Forbes. [online] 28 Apr. Available at: https://www.forbes.com/councils/forbesagencycouncil/2022/04/28/how-social-media-impacts-consumer-buying/.