How to Become a Smart Consumer and Make Informed Purchase Decisions

Can we always feel sure we’re making the smartest choice possible? Asking friends for shopping tips is helpful, but buying products without research or comparison shopping could impact our wallets. 

According to recent research, consumers in the US spent an average of $150 on impulse purchases every month during 2023, and the most commonly purchased product on impulse was apparel.

Making informed purchase decisions is critical, especially with the rise in online shopping and the wide variety of product choices available. 

Key Insights

• 83% of American shoppers are more likely to buy from a company they know has fraud protection.

• One of the ways to become a smart consumer is to use comparison shopping, which helps consumers shop around and make sure they buy at the right price.

• To make informed purchase decisions, read the fine print to save money and understand better refund and return policies.

Who Is a Smart Consumer?

Smart consumers like to research purchases and don’t necessarily buy straight away. Ordinary consumers may not always respond to spending limits, whereas smart consumer habits include being conscious of budget boundaries to save money. 

Additionally, a smart consumer tends to complete deep research, such as visiting one reputable review platform and then switching to others to gain insights from real customer experiences and feedback. Smart consumer habits often include leveraging technology to enhance their experience, such as virtual product try-ons. 

What Is an Informed Purchase Decision?

An informed purchase decision is one when a consumer makes an educated choice based on thoroughly researched and accurate information about a product or service. It means they have accessed and carefully reviewed all of the relevant details, including the product's pros, cons, and cost implications. 

When smart consumers take an informed purchase decision, they are exercising their consumer rights, ensuring their buying choices are in line with their needs and budget boundaries. 

Benefits of Being a Smart Consumer

With multiple advantages, becoming a smart consumer could transform the way you shop:

• Cost efficiency. A smart consumer compares product prices. This consumer behavior leads to savvy deals and savings. 
• Quality products. Reading brand reviews can help you discover higher-quality products, and you’ll probably experience fewer returns due to increased product satisfaction. 
• Improved control. If you make decisions based on value and needs rather than giving into gimmicks, you’ll have increased purchasing control. 
• Durable goods. Selecting high-quality products that you have carefully researched will result in products that last longer.

Tips to Become a Smart Consumer and Make Informed Purchases

With access to a worldwide marketplace and fierce competition for your money, there’s no better time to enhance your consumer skillset. 

Read reviews and do your own research

Review research is one of the most reliable methods of finding trusted brands by zooming in on details such as price, product quality, or customer service. In one of Westgate Resorts reviews, customers wished they had conducted detailed research before doing a timeshare business with the company to avoid “a terrible experience”:

I still strongly encourage anyone who is considering a timeshare with this business to do your research, read reviews, do all of the things I wish I would have done…Never in a million years did I expect them to lie to me. 

In reviewer #4804983 discovered research is crucial when they purchased in store at Floor and Décor. The customer service advisor was ‘knowledgeable’ and helped the buyer research tile selections and then complete price comparisons so their bathroom remodel went smoothly. 

Practice comparison shopping

Comparison shopping is vital for informed purchase decisions. It aims to help consumers find the ideal product or service with minimum hassle and at the best possible price.

Shoppers can use price comparison portals to better understand pricing. Some well-known portals are Google Shopping, which has a 59% recognition rate, and Yahoo Shopping, which has 48% recognition in the US. 

Some consumers find out about comparison shopping after they have an issue, such as described in one of the Walgreens reviews. A shopper discovered pricing was not accurate:

Their prices are a joke, They have fake "sale" prices. Definitely compare prices at other stores. 

Smart consumer habits help you reduce the risk of consumer issues and help you buy at the right price. 

Budget wisely and plan your purchases

Budgeting effectively is one of the best practices of smart shopping. A useful guide is the 50/30/20 method:

• 50% for essentials: rent, bills and groceries. 
• 30% for fun: products you want or going out. 
• 20% for the future: savings or retirement. 

Smart consumer tips also include using budgeting apps to regulate spending. There are free budgeting apps you can try, such as Goodbudget or Spending Tracker, that help you track spending and achieve budgeting goals. However, some consumers find that special applications may hardly help with “behavioral and emotional components of mindfully saving/spending.” 

Source: reddit.com

Read the fine print

Smart buying means reviewing the fine print. This is what a customer discovered when they tried to exchange a mattress at City Mattress. In the City Mattress review, they shared that in the store, they were told they could exchange after 90 days; however:

We went back to exchange to find out we have to exchange for equal or MORE value…equal or $1000 MORE.

Reading the fine print gives you accurate consumer insights, so you have the right information at hand before you make a purchase. 

Use trustworthy sources and safe shopping practices

Fake websites are becoming more common, with telltale signs of spelling and grammar mistakes, unrealistic prices, and a lack of reviews. This is what happened to a customer in review #5309536 when they found they clicked on a fake store from Facebook:

After speaking with the real ardene they confirmed that it is a fraudulent site run by ABCON.SHOP.

Make sure any website you use is trustworthy by checking for important signs, including:

• Correct URL: a padlock sign in the address bar and URLs that start with "https://" instead of "http://" are more secure. 
• Security badges: icons from companies, such as PayPal or McAfee, can indicate a secure site. 
• Authentic reviews: research online reviews on the company and products or services. It’s likely that authentic companies have a mixture of feedback, including some bad ones. If you don’t see any reviews for a business or its products, it could be a red flag, indicating a potential scam. 
• Trustworthy shipping options: look for trusted shipping methods and delivery companies. Trusted shipping methods include your local and national postal services and delivery companies you recognize and have used before, such as FedEx or DHL. Reliable delivery companies will provide you with updates on your shipping, usually by email or text message. You may also receive a tracking number so that you can monitor the stages of delivery. 
• Safe payment methods: credit cards or digital wallets deliver an extra layer of protection. This is because they usually involve encryption, which means your information can’t be read without access to a highly secure encryption key held by your card supplier. Two-factor authentication, such as using a passcode and a code sent to your phone, promotes higher security for these payment methods. 

Are You a Smart Consumer?

Becoming a smart consumer takes work, so it’s helpful to share stories with other shoppers who want to make informed purchase decisions. If you have smart consumer tips, please leave a comment or write a review to help everyone become smarter shoppers.