ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Is TikTok Making You Splurge More? Here's how its Commerce Code Influences Consumer Behavior

TikTok emerges as a retail influencer, leveraging user relationships and unique features. From source credibility to the parasocial effect, the platform's psychological dynamics propel consumer spending.
PUBLISHED DEC 30, 2023
Woman With Consumer Goods | Getty Images | Photo by GraphicaArtis
Woman With Consumer Goods | Getty Images | Photo by GraphicaArtis
The logo of TikTok | Getty Images | Photo by Chesnot
The logo of TikTok | Getty Images | Photo by Chesnot

TikTok, the social media powerhouse, has become a compelling force that drives consumer spending with an algorithm that reads their behavior to influence how and what they buy. Users increasingly rely on the platform's creators for product recommendations, from cleaning supplies to books. But what makes TikTok such a powerful sales driver? The answer lies in the psychology of user relationships and the platform's unique features designed around purchasing patterns.

Users are more likely to make purchases based on the perceived competence and credibility of TikTok creators. Hence authenticity is key, as people are more likely to go for endorsements that feel more organic and unpaid.

Niche categories benefit from micro-influencers who demonstrate passion and expertise. Consumers feel a stronger emotional connection, which leads them to show confidence in the recommended products.

Visual content, particularly short and demonstrative clips on TikTok, enhances credibility. Viewers connect more with creators through visual elements, creating a sense of trust. Apart from that, TikTok's dynamic format, featuring demonstrations and transformations, acts as a persuasive micro-infomercial that effectively drives user engagement.

Women carry shopping bags | Getty Images | Photo by Dan Kitwood
Women carry shopping bags | Getty Images | Photo by Dan Kitwood

Beyond content consumption, users also develop parasocial relationships with creators, feeling a one-sided friendship. As consumers get to know the preferences and values of creators, recommendations are treated like advice from real-life friends.

Once a parasocial relationship is established on TikTok, it contributes to the fear of missing out or FOMO, which encourages users to make purchases that strengthen their perceived connection with creators.

TikTok's unique content presentation turns shopping into a game, where products are packaged as part of an aesthetic or a larger lifestyle. Users feel compelled to be part of trends and discussions. Specific TikTok genres, such as "things you didn't know you needed," create surprise and delight, influencing spontaneous purchases.

Even in an environment influenced by algorithms, TikTok's short-form videos make product recommendations feel natural. The less polished the content, the more it allows users to feel as if they are making their own decisions, and enhances the authenticity of the buying process.

But while TikTok plays its part, emotional attachments can lead to overspending, as users may not critically evaluate whether the endorsement is sponsored or not. The rapid flow of content on TikTok makes it challenging to spot advertisements, and consumers should be aware of the emotional triggers on the platform to understand the potential impact on their spending habits. Knowing the reasons behind the platform's influence can empower users to make informed decisions.

In conclusion, while TikTok serves as a vibrant marketplace of ideas and recommendations, users must navigate the fine line between authentic endorsements and potential pitfalls. Understanding the psychological elements at play allows consumers to enjoy the benefits of TikTok's commerce without falling prey to overspending or misplaced trust.

MORE ON MARKET REALIST
Hearing the answers, Harvey wondered how the team that won the question got so far in the game
1 day ago
Shopper, creator, @sharpintx fell victim to 'return fraud' in the worst possible way.
1 day ago
Several companies have publicly stated that they are passing on the tariff costs to customers.
1 day ago
The guest was at a loss for words after hearing the value of the Patek Phillippe watch.
2 days ago
The fast food chain has raise prices like other but won over its customer base like none.
2 days ago
BofA Metals Cheif, Michael Widmer estimates gold to hit the $5,000/oz mark in 2026.
2 days ago
Kevin Hassett said it would solely be up to the Fed Officials to make decisions on interest rates.
2 days ago
As per the Congress' Joint Economic Committee, Americans paid over $158 billion in tariff costs
5 days ago
It was clear that the host was expecting much more from the player, as the question had potential.
6 days ago
An expert believes that raising the minimum wages has been a crucial boost for underpaid workers.
6 days ago
Costco keeps its aisle labels vague intentionally to make the shoppers wander around and explore products.
6 days ago
While rate cuts may eventually bring relief, other factors may push costs upwards.
6 days ago
A Politico poll conducted last month found Americans were struggling with spending constraints.
7 days ago
The shopper who was buying coats to donate to the homeless was met with incredible generosity.
7 days ago
The Democratic senators argued that no living/sitting president should have their likeness on a coin.
7 days ago
The contestant had a slim chance after getting only two out of five guesses right.
Dec 9, 2025
The payments will be funded by the tariff revenue and reach farmers early next year.
Dec 9, 2025
Sweeney's team blatantly broke a rule and the host had to let it go multiple times.
Dec 8, 2025
Dimon reiterated a nuanced and overall upbeat view about the effect of artificial intelligence on the economy.
Dec 8, 2025