Purchasing Decisions of Finnish Young Adults, Big Five and Cognitive Biases

I recently read a bachelor’s thesis published this year, in which Jesse Viitaharju studied the influence of personality and cognitive biases on the purchasing decisions of Finnish young adults (ages 18–34) in online stores. Cognitive biases are often subconscious, erroneous thought processes, which is why responses to surveys do not always fully reflect the actual situation. The sample size was relatively small, only 100 people, but the topic is so intriguing that I wanted to write about it.

The Big Five personality trait theory is one of the most well-known and widely studied personality models for consumer behavior research, and most of us have encountered it in some form.

Online stores facilitate the purchasing process in many ways compared to traditional stores. On the other hand, the abundance of information and selection gives customers more factors to consider, which can slow down and complicate the final purchase decision. In Consumer Behaviour: Buying, Having, Michael Solomon describes how the number of choices affects consumers in grocery stores: a study found that the group offered fewer options was more likely to buy a product.

The purchasing decision-making process is always a complex whole, strongly influenced by individual psychological factors. This, of course, poses a challenge for marketers: how to align complex personality factors with marketing strategies.

Anchoring Bias – or Why Sales Are So Appealing

Anchoring bias (also known as the anchoring effect, from the English term anchoring bias) is a cognitive bias in which an individual relies too heavily on the first piece of information they receive (the anchor) when making decisions or evaluations. This initial information can significantly influence their subsequent judgments and decisions, even if it is inaccurate or irrelevant. The study used a classic form of anchoring bias, i.e., a sale or discount.

The advertisements were identical, except that in the first one, the price of a sports shoe was reduced by 50%. Participants were asked to respond intuitively about which ad would more likely lead them to buy the product. Sixty-four percent of respondents chose the first ad, 12% chose the second. (The remaining 25% felt both options were equally good.) There was no significant difference in responses between genders.

The study found that individuals with high openness traits enjoy online shopping more than others and are more likely to make impulsive purchases. Women, in particular, felt they made purchase decisions more easily based on emotions and impulse.

Social Proof Bias – or How Other Customers’ Reviews Influence Purchase Decisions

Social proof bias (from the English social proof bias) is a cognitive bias in which people base their decisions or beliefs on the behavior, beliefs, or opinions of others. This bias is based on the idea that if many people do or think something, it is likely to be correct or acceptable. This can lead individuals to make choices they might otherwise question if they had less information about the behavior of others.

Respondents were told that the price of the first product was €200, and it had received over 20 five-star reviews and recommendations. The second product was introduced as a different brand of television priced at €150, but it had not yet received any reviews or recommendations. It was clarified to respondents that both products had the same screen size and performance. Participants were asked which product they found more attractive at the moment.

Sixty-three percent of respondents chose the first product with recommendations, while 26% opted for the cheaper alternative shown on the right.

High neuroticism, or emotional instability, may be associated with social proof bias. Similar findings have been observed in previous international studies. This is thought to be because individuals with high neuroticism may seek more reassurance from product reviews, as they are more sensitive to perceived risks in their environment.

A low openness trait was also linked to social proof bias. Earlier research has suggested that individuals who are less creative and innovative, with low openness traits, are naturally more likely to follow others’ actions.

Practical Implications of the Results

Sales increase transaction volumes, that's clear, but now you also know that they particularly affect individuals with high openness traits and increase impulsive purchases – which likely leads to more product returns, impacting your bottom line!

Women with high agreeableness traits tend to favor loyalty programs offered by online stores. Engage them by offering some kind of loyalty program, as it won’t negatively affect the shopping behavior of others.

For respondents with high conscientiousness traits, ease of use was more important in online stores than for others. They also evaluated the reliability of online stores more critically than other respondents. Improve the user-friendliness of your store – it increases trust not only among those with high conscientiousness traits but across all customer groups.

Make sure product reviews are visible – they genuinely influence the shopping behavior of individuals with high neuroticism and low openness traits.

This leads naturally into a broader favorite topic of mine, Design for All thinking, which provides tools for developing new services holistically and enables the creation of a cohesive, accessible user experience for all. More on that later!