The Psychology of Trends — How The Internet Shapes Our Purchases

By: Isla Hildebrand

Regardless of whether you're scrolling on TikTok, Instagram Reels, or YouTube Shorts, you've more than likely seen a product being advertised in one of those videos. Whether or not you've fallen victim to purchasing it depends on your level of willpower, but I can confidently say I have given in to that desire. Was it worth it? No, that little mushroom lamp that I bought for $7 because it was "such a steal" ended up lasting all of 2 weeks.

The point is, our usual social media feeds have become digital marketplaces for product advertisement, and even with all of the hauls, reviews, and commercials, it's still economics in the moment, but not in the way you might think. This is the behavioral side of economics, and how trends, vlogs, & status updates foster the FOMO feeling that leads to these purchases.

The minute any product becomes trendy, it's a war zone to get your hands on it. But the minute that item loses the spotlight, it quickly falls out of the loop, and a new product takes its place. Markets and companies are quick to react, but it's still a circulating question: why does something go viral and then disappear?

Today's article centers around the topic of behavioral economics, how social media markets influence our daily lives, and the behind-the-scenes of the concept "trending to trash." We want to explain the connection between digital marketplaces and financial spending, and heighten readers' knowledge of the strategic algorithm behind a screen.

Let's get started.

Differentiating Macro vs. Microeconomics

There are 2 main forms of economics that economists tend to focus on. Macroeconomics and microeconomics, and it's important to understand the difference between the two. Think about it like a coin, one side relates to a big picture, and the other side zooms in on you as an individual.

Microeconomics: Microeconomics focuses on the actions of a single consumer and how choices influence small-scale markets. It's the behavioral side of finance, and how a sector reacts when an event arises.

Macroeconomics: Macroeconomics is a much broader version of this concept. It focuses more on the economy as a whole, whether it's relative to a state, nation, or world. Salary, taxes, and inflation are key components in this.

Understanding these 2 branches of economics can make for a much easier understanding of the world market as a whole. It's important to have 2 perspectives when looking at economic shifts. It's not essential, but it allows for connections between personal and global trends to be drawn.

Social Media Is The New Outlet Mall

Anytime you scroll on TikTok or Instagram, you're getting shown videos that are specifically tailored to interests you've expressed. This is part of an algorithm, or the microeconomic side of the screen. The videos you watch are more personalized and pertain to your likes, which makes you all the more likely to purchase them. Over the years, algorithms have been crafted so that they continue to suck you in and lead to impulsive decisions. We've all made them; it's not the end of the world.

Influencers across all platforms are replacing the typical ads we used to see. Through brand deals, collaborations, and product promotions, they're able to reach larger audiences, and this usually feels more exclusive. They're reaching their followers, and whenever you follow a creator, it's typically because you like their content and have shared interests. This makes this form of advertisement more personal, as it doesn't feel like a sales pitch or a nationwide commercial. In turn, more companies, small businesses, and brands are more successful in reaching larger audiences and generating more income.

In a typical commercial advertisement, it can take up to months for a product to gain popularity, especially when there isn't any sort of "wow factor." When an influencer markets a product, however, it can skyrocket overnight and become a viral sensation across social media. Social media branches have managed to open up a new form of employment, one that's very appealing to people, and one that has really never been seen before. There tends to be a lot of negative stigma around being an influencer, as it isn't the most financially stable job, which can be true. But in reality, whenever influencers use discount codes or develop a collaboration with a company, they're becoming salespeople and marketers at the same time.

Social media has managed to shift the economy in a way never really done before. Its ability to use an algorithm, tailor videos to people's needs, use influencers to promote a product, and then generate an immense amount of revenue is a real-time result of the digital market. By understanding the forces working behind your "doom scrolling" habits, you're able to acknowledge the trends shaping the global market, and from there, make more financially smart decisions in the future.

The "Trending to Trash" Cycle

Now, this probably isn't super niche, but if anyone remembers the brand Choco Tacos, then they'll recognize what I'm getting at. The brand simply disappeared off the face of the Earth in 2022, never to be seen again. That was my go-to snack at my summer camp, so you can understand my dismay when I came back to camp in 2023 and they were gone. But why was that?

Whenever a product seems to be advertised by one influencer, there's usually a domino effect and a chain reaction of different influencers hopping on the specific product train. All of a sudden, boom, the product is viral, and all you can think about is how badly you wish it were your birthday so your parent would buy it for you. This is called a hyperfixation, where all the focus is on one specific thing, and it's everything people really want. Through liking, commenting, and reposting a brand's product, this hyperfixation only grows, and the line between a want and a need begins to blur.

Once a product is in the spotlight, it can create a bit of battlefield within the industry itself. Other businesses want their products to remain relevant, and seeing a different brand become popular can evoke lots of fear. This can lead to rival companies altering their products to appear more appealing, such as making them cheaper or redesigning an item to match a current trend. Another thing that we can often see arise from a viral sensation is the cheap knock-off versions, whether it's through a TikTok shop or fast fashion websites like Shein.

Over time, you start to realize a product might not be all that it was hyped up to be, and slowly the usefulness of the product dies down. Maybe you realized you didn't need red light therapy at 16, or, just like my mushroom lamp, the actual product broke within weeks of using it. Sometimes, it's also the case of, "Well, everyone now has this item, so is it really that cool or exclusive?" For the product's company, this means nobody is really pushing their item onto social media anymore. It's time for the next big thing to rise to the occasion.

Everyone just tends to move on, and in the long run, for lots of companies, this means the end of their 15 minutes of fame. The internet is quite literally a technological version of an attention span; once it's done with its obsession on one product, it's on to the next. This cycle is simply a reality, and, well, in reality, it's just as hard to go viral as it is to stay prominent.

Future Tips

Now this part is very much a "Do it at your own will," because let's be honest, after this article is posted, I'm probably going to go right back to scrolling on TikTok and fall victim to another product. So what, it's my last week of summer, sue me. But I do try to go about social media now with certain practices I keep in mind. Let's go over them!

1. I always ask myself, "Do I really see myself using it?"

I'm very much an impulsive person, so anytime I'm viewing an item, whether it's room decor, a piece of clothing, or a fun decoration to add somewhere else, I try and visualize where it would go, and if it would be of real importance. If I only actually see it just sitting on my desk, not being of any assistance, I try to stay away from the "Add to cart" button.

2. "Is this a brand deal, or an unpaid promotion?"

Sometimes influencers get paid to market specific products without honestly trying them out. This can lead to fake reviews or false information being spread, and then it's just a giant waste of money. I have a few influencers whom I do rely on for product reviews, but usually if someone is marketing a product unpaid, and they have proof of the benefits of it, then I'm quick to add it to my cart.

3. "How much really is it?"

I know we all know what girl math is. If I buy a purse for $80, that seems like a lot of money being spent, but if I use it 20 times, that's technically only $4 being spent now. But it's also important to make sure the price isn't raised due to popularity; if it is, put it back. It's also important to consider if you would buy something if it hadn't been shown all over the internet. If you know you wouldn't, then is the price really worth it?

There are so many different tips you can use when going about digital production advertisement, but these are my core 3. The main importance behind this is to recognize how a product's timing, appearance, and price can influence a spending habit, and how it's important not to always fall victim to it. Having a conscious thought process when going about a purchase can make it much more justifiable and much more beneficial for the long term.

Don't Fall Into The Internet's Trap

Social Media is one of those tricky areas of the economy where it's crucial to go about it with intention and a plan. Viral products can truly tempt us to get caught up in a purchase, and the digital marketplace is always showing us a new trending item. But it's so important to remember the driving forces behind the screen. How every video you've liked has been taken into account, and how an algorithm notes this, and shows more related videos.

If you actually understand what separates macro from microeconomics, realize how those sneaky algorithms are basically stalking your likes, and notice how stuff goes from must-have to totally lame in, like, five minutes—yeah, you start to see what's really messing with your wallet.

Trends are always temporary, so it's essential to understand the forces working behind the scenes. Knowledge of this is empowering, and sometimes we have to ask ourselves hard questions to truly clarify if we want to spend money. And yeah, sometimes that means we don't actually make a purchase, but it's always done with good intentions.