Friday, October 15, 2010

Disclose Product Cautions

Laws, standards of professional practice, business insurance underwriters, and commitment to retailing ethics might all require you to provide customers warning about the risks in using certain products you sell. But what about volunteering negative product information when you’re not required to do so?
  • Researchers at European University Viadrina find that when a salesperson volunteers negative information about a product that’s being considered by the shopper, the shopper becomes more likely to trust everything the salesperson says. This argues for the salesperson starting by presenting a good choice, but one other than what the salesperson thinks is the best choice for both the shopper and the store’s profitability. After presenting a downside of that choice, the salesperson can move to presenting the best choice. But keep the words and logic simple. The researchers also find that if there’s too much complexity, the shopper won’t hook the talk of negative information to the salesperson’s credibility.
  • When comparing choices for the customer, accentuate the positive. A positive frame is of the form “The other alternative is good, but the one I’m recommending is even better.” A negative frame is of the form “The other alternative is bad, and the one I’m recommending is good.” Researchers at New York University and Vanderbilt University find that negatively framed comparatives draw out more counterarguments from the shopper than do positive comparatives. But further research says that if you want the shopper to spend more time thinking about the product selection, use of a negative frame can help.
  • When a shopper is in a positive mood, their decision making is more flexible than when they’re in a negative mood, and they’re more likely to persevere in the shopping process. Decide on your recommended purchase alternative and talk about how the positives outweigh the negatives. But when the shopper is in a negative mood, quickly decide on your recommended purchase and then talk about how it is the least bad alternative. Be ready to answer questions about the negatives of each alternative. Then once the customer makes the selection, talk about positives to reassure the customer.
  • Consider offering a liberal money-back guarantee that’s known about and trusted by the shopper. Research findings from University of California-Berkeley and Hebrew University of Jerusalem indicate that if your store does this, disclosing product cautions becomes less important to making the sale.
Click below for more:
Encourage Balanced Customer Reviews
Combine Positive with Negative Comparatives
Attend to Negatives When High Time Pressure
Selectively Keep Information from Customers

1 comment:

  1. An impact display at the point where your shopper enters can prime your shopper to recognize your product as pleasingly familiar when they later encounter it in its category location in the store. It looks like Mills Display, to which your comment links, Samual, provides attractive alternatives for this sort of marketing at retail.

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