Under the influence: How Public Figures on Social Media Impact Spending Habits
Written and accurate as at: Apr 04, 2024 Current Stats & Facts
Under the Influence: How Public Figures on Social Media Impact Spending Habits
Studies have found a direct link between social media engagement and increased materialistic tendencies, leading to negative consumption behaviours such as compulsive, conspicuous, and impulsive buying. The intensity of social media use and a person's attitude toward social media content further influence these behaviours. One driving factor of increased consumerism via digital platforms is the public figures used to promote products and services: the influencers.
The Influencer Impact
Influencer marketing has become a significant factor in shaping consumer choices. An influencer's ability to create trends and instil trust leads to increased impulse buying. Their impact varies between demographics, such as age and particular interest groups. Still, their role in promoting products and shaping consumer perceptions is undeniable.
This increased spending can result in higher personal debt and reliance on credit. This trend, when widespread, can have macroeconomic consequences. An economy saturated with high consumer debt can face challenges like reduced savings rates, increased vulnerability to economic downturns, and potential financial crises. Furthermore, the rise in consumerism fueled by social media can skew market demands, potentially leading to overproduction and inefficient resource allocation, affecting the overall economic stability.
What motivates us to hit the follow button?
Social media users follow influencers for various reasons, including information sharing, seeking trends, relaxation, entertainment, connection, and out of boredom. Although these motivations reflect a range of purposes, utilising online accounts as a source of relaxation and distraction alludes to the issue of escapism.
This may lead to less critical thinking and higher impulsivity levels as users disengage from the real world. Suppose you pair these maladaptive coping behaviours with a solid social identification with an influencer or brand. In that case, the likelihood of buying endorsed products increases significantly, which may be better for your finances!
Economic and Societal Implications
Unfortunately, social media's rising influence on consumer spending extends beyond individual finances. Broader economic and societal risks are emerging, including debt, environmental issues, and labour exploitation. Understanding these implications is crucial for developing sustainable consumption patterns and responsible marketing practices.
Increased consumerism, especially for fast-fashion products, has a profound environmental impact. Production, shipping, and eventual disposal contribute to pollution, resource depletion, and waste.
Other impacts involve poor mental health due to unrealistic expectations online, a culture shift towards disposability and short-term gratification and small businesses receiving fewer sales.
As we navigate the complex world of social media and consumer spending, it's clear that our online interactions profoundly influence our spending habits. Awareness and understanding are essential in making informed, responsible, and fulfilling purchasing decisions in this digital age. Making informed purchasing decisions requires recognising our online behaviours' underlying motivations and impacts. This is crucial for developing sustainable consumption patterns and responsible marketing practices, ensuring that our digital engagements enhance rather than detract from our financial well-being and societal values.