YOUNG ENTERPRISE FINANCIAL RESOURCE
STUDENT RESOURCE
Gatsby Benchmarks 1 2 3 4 5 6 7 8
Impulse buying
AGES 14-16 : ACTIVITY FOR SCHOOL OR HOME ( WITH PARENTS )
Time : 30 minutes
Materials : Impulse purchase cards ( optional )
I understand that people who are selling goods and services , including financial ones , do so to make money and that I have a responsibility to become as well informed as I can before making choices , e . g . by analysing the small print in agreements , or by using comparison websites . ( 14-16 )
I can describe how I can exercise both my rights and responsibilities as a consumer of goods and services . ( 14-16 )
Activity
This activity will encourage students to explore the various methods companies use to persuade us to make impulse purchases .
Explain that during the activity , students will be considering the act of impulse buying . If we understand impulse buying better , we can make more informed spending decisions . Begin by sharing the following statistic from a
study carried out by MyJar .
Every month , we make an average of nine impulse buys , equating to 6,512 poorly planned purchases during a lifetime .
Ask the student / s what they think is meant by an ‘ impulse buy ’? Responses may include : an unplanned purchase , last-minute purchase , not thought through , spur-of-the-moment , want not need , a treat , a feel-good purchase . Discuss whether impulse buying can impact our ability to save .
Ask the student / s to work in small groups ( if in class ).
Give each group a set of impulse-purchase cards . These cards include the top 10 impulse buys in the UK . Challenge the students to rank these items in order of highest to lowest . Alternatively , you could display the cards on an electronic whiteboard .
Reveal the correct order , which you can find at the bottom of this activity . Discuss the results : are they surprised by the top three ? Why do they think chocolate bars and sweets are top of the list ?
Chocolates and sweets are inexpensive , easy to justify a small additional spend ; they ’ re easy to grab , especially when queuing for the checkouts , etc . Most impulse buys are relatively inexpensive .
Give the student / s two minutes to speak to their partner ( or to jot down their thoughts , if they are doing this activity at home ) about why people might make impulse buys ; encourage them to think about any impulse buys they may have made recently .
Ask students to share their ideas . Explain that the ‘ feel-good factor ’ often plays an important role when making an impulse purchase . Companies use clever marketing to try to persuade us that if we consume or own a particular product , our lives will be improved and we will be happier .
Working in groups ( if in class ), ask the students to see if they can identify the different marketing methods that companies use to encourage us to make impulse purchases in-store .
You could provide these bullet points as guidance :
• How does the shop make the items stand out ?
• Where does the shop place the items ?
• What messages does the shop use to make the customer decide to buy the item ?
Ask the student / s to feed back their ideas .
Methods include :
• Brightly coloured and well-lit shelves
• Leaving small , inexpensive items such as confectionary near the checkouts
• Using eye-catching signs to advertise sales items
• Making sure the items are easy to grab and add to your basket
• Persuasive messaging , playing on ‘ urgency ’ ( e . g . one day only , limited-time offer ) or playing on ‘ value ’ ( best-value item , buy two for £ 1 )
Then ask the student / s to think about online shopping . Explain that the majority of impulse buys are actually made online . Ask if they can think of ways that shops might encourage us to make impulse purchases online . Explain that this isn ’ t an easy task , as the methods companies use to persuade us to buy are not always immediately obvious . Ask them to feed back their ideas .
Companies aim to make consumers ’ experiences positive and fun . They use a variety of methods to make consumers feel that the shopping experience is specifically tailored for them . When consumers are enjoying the shopping experience , they ’ re more likely to make impulse buys .
• Companies aim to make their websites easy to navigate and attractive .
• Consumers can personalise their experience , selecting favourites and opting in for product recommendations ; this way it ’ s easier and quicker to find specific items .
• Upselling or additional product suggestions – once you ’ ve added something to your basket and you ’ re checking out , a company may suggest other items , usually small ones , that you could buy that would complement your main purchase ; e . g . when buying trainers , the shop may suggest buying trainer cleaner .
• There may be a timer when you buy additional items – making you feel that you only have a limited chance to purchase that item / suggesting the item is on offer specifically to you .
• Companies may offer free postage and packaging if you spend over a certain amount of money . Small impulse buys can help you reach this required spend .
Finish the activity by asking the student / s to reflect on their learning – will they be less likely to make impulse buys now that they understand the techniques companies use to persuade us to buy ?
EXTENSION
• Ask the student / s to create a simple research questionnaire for their peers about impulse buying .
• They could use the results to raise awareness of impulsepurchasing behaviours .
Answers : 1 ) Chocolate bars / sweets // 2 ) Clothes // 3 ) Takeaways / fast food // 4 ) Fizzy drinks / coffee or similar // 5 ) Lunch / dinner 6 ) Books // 7 ) Beauty products // 8 ) Shoes // 9 ) Magazines / newspapers // 10 ) Underwear / socks
IMPULSE-PURCHASE CARDS
Chocolate bars / sweets Clothes
Takeaways / fast food
Fizzy drinks / coffee or similar
Lunch / dinner Books
Beauty products Shoes
Magazines / newspapers Underwear / socks