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NAIROBI, Kenya – As shopping becomes increasingly driven by deals, discounts, and limited-time offers, Peter Macharia Kamau, the Founder, Managing Director, and Chief Executive Officer of Jijenge Credit Limited, has shared timely advice on how consumers can avoid falling into the trap of unnecessary spending. His financial advice: “Just because something is on sale doesn’t mean you have to buy it!”
In a candid discussion about the financial habits of Kenyan consumers, Kamau emphasized the importance of mindful spending, particularly in a retail environment designed to encourage impulsive purchases. He explained how marketing psychology can manipulate consumer behavior, making them feel compelled to buy items they don’t truly need. Kamau’s words serve as a crucial reminder for shoppers to resist the pressure to purchase simply because something is on sale.
The Marketing Traps
Kamau highlighted how persuasive marketing techniques are employed both online and in physical stores, often leading consumers into making hasty and unnecessary purchases. The key, he explained, lies in the clever psychological tools used by brands to create a sense of urgency and importance.
“Many retailers use tactics like large ‘up to 80% off’ signs to entice shoppers into feeling that they are making a smart, bargain-driven decision,” said Kamau. These tactics often play into the “anchoring effect,” where retailers place a high original price next to the discounted price, creating a perception of great value even if the purchase is unnecessary.
Similarly, Kamau pointed out the concept of scarcity as another common strategy used to fuel impulsive buying. “When stores display signs that say ‘Only a few left!’ or ‘Limited time offer,’ consumers feel a sense of urgency, which makes them believe that if they don’t act now, they will miss out on a valuable deal. This plays into the psychological concept of loss aversion,” he added.
Loss aversion refers to the human tendency to prefer avoiding losses to acquiring gains. For instance, missing out on a sale feels like a significant loss, even if the consumer doesn’t necessarily need the product. “This is where FOMO—the fear of missing out—comes in. Shoppers fear regretting not taking advantage of the discount, and this anxiety pushes them to make purchases they later realize they didn’t need,” Kamau explained.
The Cost of Impulse Buying
Impulse buying, often triggered by sales, can lead to financial strain, especially when consumers frequently make small, unplanned purchases. Over time, these seemingly insignificant expenditures can add up, potentially harming a person’s financial stability.
Kamau emphasized that every shilling counts, and financial discipline is essential to avoid overspending. He explained that while discounts might make a product seem like a must-buy, consumers should evaluate whether they genuinely need the item. “The idea is to differentiate between something you want and something you actually need,” Kamau advised. “Sales can be tricky. Just because it’s on sale doesn’t mean you need to spend your money on it.”
Steps Toward Mindful Spending
To combat the powerful psychological pulls that retailers use, Kamau offered a practical approach to more mindful spending. He recommended a series of questions shoppers should ask themselves before making a purchase. These include:
- Why am I here (in this store or on this website)?
- How do I feel, or what’s my mood like?
- Do I need this item?
- What if I wait and don’t buy it now?
- How will I pay for it?
- Where will I put it once I own it?
According to Kamau, these questions help create a pause between impulse and action, allowing consumers to assess the necessity of a purchase more thoughtfully. “That pause is critical,” Kamau said. “It gives you time to rethink your decisions and evaluate whether what you’re buying adds value to your life.”
Kamau also suggested more practical techniques for curbing impulse buying, such as creating a shopping list and sticking to it. “Always have a list, even for online shopping,” he said. “If you are tempted by a sale, add the items to your digital cart, but take time to review each one before checking out. Often, you’ll realize that some of those items are not worth the purchase.”
Payment Methods and the Psychology of Spending
Kamau also addressed how the method of payment can influence consumer behavior. He recommended using more tangible forms of payment, such as cash or debit cards that require entering a PIN number, as opposed to using mobile apps or contactless credit cards, which make spending too seamless and easy.
“Studies show that people feel a greater ‘pain of paying’ when they use cash because it’s a more tactile experience. This pain is a psychological deterrent, causing shoppers to hesitate before making a purchase,” Kamau explained. “On the other hand, using a mobile app or contactless card can diminish that sense of loss, making it easier to spend without feeling the same level of consequence.”
Kamau concluded by stressing the importance of financial discipline, especially in the face of persuasive marketing tactics. “The key is awareness. Once you understand how marketing influences your decision-making, you can take steps to be more intentional about how you spend your money.”
