Tuesday, January 10, 2012

Slip in Superfluous Choices

Consumers make many purchases with scant attention to all the details. Often this is because the shopper acts from habit, so no thorough thought is necessary. In other cases, the shopper is limiting attention to one attribute—such as price—so doesn’t even notice other attributes—such as durability or delivery time—until after the purchase. Busy and stressed consumers are especially likely to take the shortcuts.
     This consumer psychology reality has effects which create challenges for the retailer:
  • Missed opportunities. If you believe there’s a better alternative for the shopper you’re assisting, you may have trouble slowing down the decision process.
  • Post-purchase regrets. When the customer ultimately takes time to fully evaluate the product or service, she may become less satisfied.
  • Wobbly store loyalty. With the limited focus and possibilities of post-purchase regrets, your customer is susceptible to sales pitches from other businesses.
     Research findings from Harvard University and Hong Kong University of Science and Technology suggest a way to address the challenges: Add superfluous choices early in the decision process. The researchers define superfluous choices as ones which, in themselves, have little impact on what item is ultimately selected. The power of superfluous choices is to slow down the decision process sufficiently for the consumer to take note of a broader range of attributes.
     Study participants were asked to make a selection from different alternatives for rewritable compact disks and cases. But prior to making the choice, one group of participants were first asked to decide how many different colors of cases they’d want to have. The researchers had earlier determined that, in itself, the number of case colors was not an important determinant for consumers in selecting from among alternative packages of rewritable CDs.
     However, introducing this superfluous choice increased customer loyalty. Of the study participants who were not asked about case colors before choosing the product, 47% chose the same alternative again subsequently. But of the study participants asked to make the superfluous decision before the product choice, 74% persisted in selecting the same package of rewritable CDs and cases again later. In addition, the superfluous-choice-first participants were more satisfied with their selections afterwards.
     This had to do with product loyalty. Similar techniques work for improving store loyalty and customer satisfaction with your store. Ask your shoppers to make a few choices—any sorts of choices they’ll see as interesting—early in the decision process.

Click below for more:
Number Costs and Benefits for Desired Effects
Dislodge Indecision with New Choice

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