What factors can cause consumers to make choices they believe ex ante are bad or wrong? Should marketers care or attempt to do anything about consumer PRE-decisional regret?
Making “difficult” decisions is hard enough, but the real frustration happens when you know you are being ripped off... but you buy it anyway! In the example we talked about in class, the airlines have identified that that week is a high traffic week, and have jacked up their prices accordingly. In these instances, consumers are extremely likely to feel post-decision regret.
I see two main factors that most likely contribute to this feeling. First and foremost is price; if the tickets had been more reasonable (say, $350 instead of $700), most consumers could have justified that purchase because it is about the cost of a regular flight. In tandem with price is usually also a large amount of external pressure to buy. As Emily (Stern) had mentioned in class, she felt obligated to pay the higher price because all of her friends were going on the vacation, and she didn’t want to be left out.
So what can marketers to do help alleviate this instant regret? They could take the framing approach, by demonstrating to potential consumers how the cost of the tickets would be more if they flew another airline, or a different week of the year (although in this case, it sounds like in the weeks surrounding this one, the flights are significantly cheaper…). I think their strongest approach would be to focus on the benefits the customer will receive by paying this premium. Since one of the factors influencing us to buy is external pressure from friends, marketers could work to find ways to show potential buyers images of “friends” having fun at the beach, or use taglines like “Don’t miss out on the best week of your senior year!” If marketers could align their strategies to fit with the hesitations of consumers, those potential buyers are less likely to have post-decision regret.
I read an interesting article on a similar note to this the other day that talked about how British Airways is developing a system to make their airline travel more personalized to the customer. They believe that the customer is happiest when they feel like they are having a tailored experience, and I’m sure they are hoping this will increase their word-of-mouth advertising from happy customers and encourage them to buy again. You can bet they will be working with their marketing department to promote this strategy in lessen that post-decision regret!
I like Emily's idea about creating a framing situation to help alleviate any post-decision regret but in the case of pre-decision regret, I honestly think it is unnecessary for marketers to be concerned with those feelings. It doesn't seem to matter much whether or not the buyer wants to make the purchase if they are just going to buy it anyway. Actually, it might even be helpful for the marketer to create more anxiety around the situation.
If the buyer recognizes the purchase as a bad decision and has no pressure from outside sources to actually buy it, it would be very easy to just say no. However, if the marketer can increase the anxiety around the decision perhaps by creating social pressure (like all of your friends are going on this spring break trip together), this easily rejected bad decision becomes a much harder one to say no to. In this case, the marketer can charge premiums that would not be viable in any other situation.
As Emily said I think that one of the main factors is the price: you feel guilty when you are up to spend a big amount of money for something you want VS something you need. You know it is not reasonable to spend so much. In the case of the trip You could ask yourself questions about the very utility of the buying purchase and you think "will I really miss something if i don't go?" It is never pleasant to hear your friends speak about/make private jokes about the trip they did without understanding anything because you were not there. So, you want to be in! Another factor could be the fact that people don't want to break their "duties": go to Florida for the week-end when you have a lot of homeworks and 2 big exams the next week; go to a concert while your best friend organizes a party for her birthday the same night or eat a cheese burger and a Snickers for a diner with your friends when you are on a diet. In these cases you often know or you have the feeling that your choice is bad/wrong. Unfortunately "to choose is always to forsake".
When you are in a store I think that you feel less the "pre-decisional regret" aspect because salespersons are here to help you and convince you that you make the good choice. You are surrounded by "positive waves". But It would be interesting if marketers find a way to help you weighting the pros and cons for a difficult choice on internet: before buying a product/service on internet you could see a list of positive points to buy it (example with the trip; to buy the fly ticket: the pros: -I need vacation / - I saved money this month to make my wish come true so it is the time to use it /- i don't know this city / - i have no others plans for this week-end...) and like the tests in female magazines you have to check all the affirmations with which you agree and you get a kind of "score" with a comment "Yes you made the good choice! because blablabla". By seeing that you checked 8 affirmations out of the ten suggested it would confirm you / reassure you in your decision. Of course the question is: what would happen if you don't check any of the propositions...
There are certain products and services both companies and consumers know are overpriced commodities. As informed buyers we know the cost of clothing is much less than the value on the price tag yet we buy it anyway. This is because the value they place on the product is a price someone is willing to buy.
Marketers' jobs are to price the products at the value a consumer is willing to pay. Usually it is a value we associate with the brand and a perception the consumer and society create. In the case of the airline tickets, it is the superior experience we BELIEVE we will have by investing in the travel to get to the destination. If I went to Punta Cana a different week, I would place very little value on the trip because none of my friends would be there. Good marketers are highly aware of consumer circumstances and price their good/ services accordingly.
I do not believe it is a markets job to alleviate pre-decisional regret. The choice to buy is our own and it is only natural to feel guilty after making a large purchase. If you do not place the same value on a product/ services as the marketer thought you would, you truly would not buy it unless you were not in a sober state.
For example, I know no matter how much money I have, I will never place a value of $1000 on a purse, but many people are willing to spend that sum. Marketers of those purses know the weaknesses of their target market and know the value they place on luxury. The consumer will most likely hand over the credit card if that was their original intent no matter if there is a ploy to deal with the preconceived regret or not.
I don't think it's alright to charge premiums and just ignore pre purchase regret. The only way the company can do anything about such a feeling is they have salespeople on the ground. In such a case, I feel I'd appreciate it if I was warned about the potential downsides of the purchase. It might appear counter intuitive, but I have a feeling that it might lead to greater loyalty among the purchasers even though it might change the minds of a few people. A feeling of not being screwed over will go a long way in building trust, which over the long run should lead to greater loyalty.
As one of the Punta Cana Spring Break buyers, I think that post-decisional regret comes down to the idea that there are better (cheaper) alternatives if you wait. The modern consumer is constantly stimulated by sales and clearance racks. This makes us assume that if we buy later the price will decrease. I am constantly looking for the best deals and cheap places to shop for quality brands (TJ Maxx, Marshalls). I always seem to find incredible deals, so when I see clothes that are not on sale I immediately turn away. In this sense, consumers are never feel that they have "shopped their best" when they buy things at retail price.
In terms of this decision or any vacation decision, we all hope the price (or a better option) will come along but usually it is the opposite due to flight price increases and hotels filling up. Buying the spring break trip so early in advance was an extremely expensive commitment, but as it gets closer to the trip people will have less regret because they will realize that it is going to be of great value. People will start to talk about the trip and assure their friends that it will be the trip of a lifetime. Also, I think that for most of us, this is one of the most expensive purchases we have ever made for our pure enjoyment. It is truly a luxury trip and we are feeling the nerves that come with making a purchase of this size.
As we learned in class consumer behavior is a combination of one's thoughts, feelings and actions as they interact with the marketing environment. Thus marketers have a responsibility to address all three of these aspects as they seek to create a mutually valuable relationship with their customer. In order to do this I think marketers need to make the consumer believe that what they're purchasing is worth it. Value = Benefits/Price. So in the case of the expensive spring break vacation, the benefits of the trip, in the mind of the consumer, greatly outweighs the price of the plane ticket. We regret our choices when our actions don't match our beliefs (cognitive dissonance) making it the job of the marketer to convince you of the benefits when the price is high or vice versa. In the words of Warren Buffett "Price is what you pay. Value is what you get."
The factors that cause consumers to make wrong decisions can come from a variety of places. As we talked about after our decision making exercise, it is very prevalent for our decisions to be heavily influenced by other people. In the case of the overpriced flights, this is exactly what happened. There were a select group of people that decided that this was the best option and from their purchase (even though it was ill advised and most people disagree with it) in essence required everyone to follow suite. Simply this is peer pressure. Other factors that cause wrong decisions are spur of the moment decisions, being swayed by a good sales pitch, being drawn in by a deal, and so many other tactics. Marketers should always be concerned with factors that influence decision making and purchasing. In the case of pre-purchase regret, there are a few tactics that marketers could take. In my opinion this is a lot like buyers remorse. What marketers need to focus on is how to comfort consumers with their purchase. In the case of the flights, they should use positive reinforcement (maybe show a picture of a crowded week vs. a slow week so the consumer sees that they are buying a week rather than just a flight). Customer service is also a great way to "talk someone off the ledge". There are many tactics, but they all focus on the same thing, making sure the consumer realizes that they ARE making a good decision.
While post-decision regret is something that I've dealt with personally many times, pre-decision regret is another story. While I have experienced pre-decision regret, it has only really come on more expensive decisions which I make very rarely. The most recent decision that I can remember that falls into this category was my purchase of golf clubs. I knew that I was spending too much on the clubs at the time, but was talked into my decision by friends and coworkers at my internship.
From reading the posts of others, It seems that my feelings are not unique. Large purchases, like flights to Punta Cana, make us all feel uneasy. I believe that this happens for a number of reasons. First of all, we research these decisions more than any others. We find out, and then focus on, all of the negatives of these choices. Whether it is a lower price flight another week, or the knowledge of lower price golf clubs, we harp on these decisions.
Marketers can help consumers to avoid feelings of pre-decision regret by attempting to show the positive aspects of a decision and offering services like free returns or customer service hotlines. While these services can help consumers, some aspects of this phenomenon are, unfortunately, unavoidable.
As a consumer that has experienced this post-decision regret more times than I wish to admit, I find that these bad decisions often stem from the idea of missing out on something. We wonder and worry that if we do not make a specific purchase that we will miss out on a certain experience. I also find that these purchases typically happen when friends and family are involved. When we make these purchases, we are often more easily persuaded if our peers have already made the same purchase.
A spring break trip is the perfect example. As many of my classmates stated, they were fully aware of the fact that they were participating in bad decision-making; however, they made the purchase anyway. In this case, consumers are more likely to pay higher prices because their peers have already made the purchase. By making the (bad) purchase, consumers can ensure that they will not miss out on the experience that the purchase promises, nor will they stray from the decision of the group.
If marketers are able to highlight the positive aspects of a product knowing full and well there may be some pre-decision questioning they are more likely to make the consumer feel more comfortable with the decision. By making positive statements and phrases such as "once in a life time experience" or "one of a kind" marketers help consumers feel this is a once in an lifetime opportunity they can't pass up. The real test comes though when the product arrives, or the experience is over. Was it truly worth it? Hopefully the product in this case lived up to its promise and the marketer doesn't have to concern themselves to much with post-decision regret.
There are several factors that I believe cause consumers to make choices they believe are bad or wrong even before the purchase. First, a consumer may be making a purchase that they know they could receive a better deal elsewhere, however the timing or convenience of purchase may be stronger. In this way, the consumer isn’t completely satisfied with the purchase but recognizes the value and other positive aspects that balance out the purchase. I think that this type of pre-decisional regret is evident in the class example of the Punta Cana Spring Break trip. As with other investments, I think that it is only natural to feel selfish and regretful even before the purchase until the value of the investment shows through and overcomes these emotions.
As aforementioned, I agree that the VALUE of the purchase plays a huge role in response to the prompt. I don’t think that marketers really have the ability to do anything about consumer pre-decisional regret other than reinforce and continuously expose the buyer to the ultimate value of the product. These emotions of pre-decisional regret may still be present naturally by the buyer but the marketer will help enhance the perceived value and alleviate the negative emotions by helping ensure that the product/purchase has a high value and thereby worthy of such a high price tag.
While I try not to make decisions I know I will great before it's even done, I of course have been a victim of pre-decisional regret. When thinking about this concept, most of the times I have done this have been when I have been in a group. Some examples of this may include going out to dinner, purchasing a concert ticket, or going out on a week night. I might not make these decisions individually, but I am much more inclined to if I know my friends are making that decision. I think marketers from some companies can definitely play to this concept. For example, this summer, I worked for a minor league baseball team, and a great portion of their sales came from group ticketing. They offer a lower price for groups of a certain number of more, so it seems like they are getting a good deal. This group pricing method, however, allows them to get more customers than if they were given the same rate as individual customers. Other organizations that might benefit from group rates include concerts, amusement parks, and fairs.
Pre-decision regret is an interesting concept because it applies differently to different products. I believe marketers' should only be concerned with the regret if it affects the buyer's buying patterns negatively. The first factor influencing the severity of the regret is the condition of the competitive industry. If there are a lot of competitors and substitutions available to the consumer, positive pre-decision emotion is imperrative. If the consumer can get what they need elsewhere without any risk of regret, they will. Without the existence of competition, such is the case with a class organized spring break, the price you are willing to pay rises. If the product is a one time buy, such as a spring break trip, the marketer's only concern should be the price point above which people cannot pay; pre-decision regret should not be an issue. They should, however, make sure to deliver a to-par or superior product. If the experience exceeds their expectations they are likely to have a positive post-decision evaluation. They can enhance the experience and the post-decision evaluation by exploiting aspects related to the unique experience e.g. differentiating. The more they feel they got an experience they couldn't get elsewhere the better they will feel about rejecting a lower priced offer. If they are disappointed they will be likely to spread negative reviews and hinder future sales. It is the marketer's duty to protect the financial well-being of the company; if pre-decision regret won't hinder potential money, they should let it happen.
The factors that can cause consumers to make choices they believe are bad include; how the choice is marketed, alternative products/services, opportunity cost, price uncertainty, and social pressures. More specifically there is greater chance of pre-decision regret when the offer is always available, when there are particularly competitive alternatives, when there is concern over the amount or potential fluctuation of cost, and when there is little social reward in making the purchase.
I think Tyre made a great point that marketers should care about everything that influences consumer purchasing behavior. Keeping with the factors we identified above, there are several strategies which marketers may adopt to soothe pre-decision regret. Framing choices as limited time offers, distinguishing the product/service from competitors, setting a constant and straightforward price, justify that price, and emphasize the social benefits for making the purchase.
I think that Sean has done a great job pointing out some key factors and specific marketing strategies above. To piggyback off one of the aforementioned strategies, it is absolutely vital that marketers who are marketing a product that they know consumers are often shaky about, market the product not only as a limited time offer, but as a "once in a lifetime opportunity/item." That is exactly how the Spring Break trip I spoke about in class was marketed to me by both my friends and the trip leader...and as we all know, it worked!
Another marketing strategy for pre-decision regret is to reduce cognitive dissonance for the consumer at the moments leading up to the purchase. For example, marketers for retail brands can implement store strategies where the sales staff complement and help everyone who walks out of the dressing room. They could instruct the cashier to make a simple comment like, "I love that top. It's a great thing you are buying now because we are almost sold out." A third marketing strategy for reducing pre-decision regret is to really focus on the most frequent determinant attribute. For example, if the typical determinant attribute for an item is price, you can assure customers that this is the best price they will find, or the absolutely best value for the price.
I agree with most of the class in that I think pre-purchase regret is due to fear that the price of the purchase will not match the value of the product. One thing that I think reduces anxiety about decisions is deciding to buy products from reliable sources and reliable brands. In these cases, the consumer is more confident the value being promised to them is legitimate. When someone books a room at a Ritz Carlton, even if the price tag is hefty, they can rest assured their experience will reflect that price tag. Whether from reputation or past experience, consumers trust the brand and its dedication to customer satisfaction.
On the other hand, purchasing from unknown brands or retail venues may cause more anxiety. This past summer, I waited to buy tickets to a concert and ended up buying them from a scalper right outside of the venue. Handing cash to a man on the street for a paper ticket is probably the least reliable a transaction can get. I had never scalped a ticket on my own before, and the situation I found myself in was foreign and uncertain. I did it anyway, because the alternative was not going into the concert at all. The ticket ended up being counterfeit. Thank goodness the scalper had no idea and gave us our money back. Because of the trouble and stress this purchase caused, all of my future ticket purchases will be through a legitimate ticket dealer even if the price is higher than what I would like to pay. Ticketmaster and Stubhub are trusted brands and sell tickets that I know will be of value.
I am not sure that it is necessarily a marketer’s responsibility to assuage pre-decision regret felt by consumers, but I think that developing and maintaining a consistent and reliable brand can contribute to a more relaxed consumer. Consumers can trust that they will receive the value they are paying for.
I completely agree with Madeline about the pre-decision regret issue. Often right before a big purchase, I know I'm going to regret spending so much money. This rarely deters me from buying the product though if it's something I really want. However, there are times when the pre-decision regret is too much and I ultimately do not make the purchase.
Brand reliability is a huge factor in whether or not I choose to buy the product. I think that marketers can capitalize on this by reassuring the customer of the product's value. You want to feel as if what you are buying is worth the large amount you're spending. It's all about expectations like we discussed in class today! Marketers need to make sure that customers believe their expectations will at least be met if not exceeded. Negatively disconfirming expectations will only lead to increased post-decision regret.
As mentioned above, I too believe that factors influening consumers to purchase things they do not necessarily want come from a consumer's internal desire to "fit in" in some way. Likewise, I agree that most pre-decisional regret comes post large purchases. How long - if at all - this feeling lasts must surely be dependent on how satisfied for dissatisfied the consumer is post purchase. For example, if the new car is always enjoyable to drive, gets lots of compliments, doesn't have mechanical issues, and makes you feel "cooler," than the purchase will likely not cause any regret.
In order to eliminate pre-decisional regret, marketers (advertisers, really) should emphasize how a consumer will feel post a large purchase. It would also be wise to communicate to consumers that these good feelings will last long enough to make up for the price tag. I think any consumer who makes a big purchase wants to be positive that they will still be happy with their purchase six months down the road. If marketers could do this, consumers may be less apt to focus on short term losses and instead concentrate on the long-term gains.
I completely agree with Shannon's point about how marketers must emphasize the satisfaction a customer will feel after a major purchase decision or investment when they cannot frame the situation to convince the consumer that they are getting a "deal". Like Celia mentioned, consumers these days are very focused on getting the best deal possible--perhaps because of lasting effects of the recession on consumerism--and are extremely hesitant to make big-ticket purchases. By communicating the lasting feelings of satisfaction and social benefit that can come from these purchases, marketers can help ease the worries of consumers to spend large amounts of money on one item, and prevent feelings of post-purchase regret.
I believe that in our age group, perceived social benefit is one of the biggest motivators to buy a big-ticket item. Much of our post-decision regret lies in the fact that we are worried that the social benefit will not outweigh the actual cost once the trip has arrived or once we have purchased an item. Our anxiety that the cost will outweigh the benefit drives us to seek reassurance from our peers that the cost will be worth it in the end. So what does this mean for marketers? Marketers could focus on how to create buzz for big-ticket trips or luxury goods through social media outlets that can reach this target market and then allow potential customers to "share" this information with their friends with links or "share" buttons. A post by a student travel site on a social media medium that can then be reposted by other interested friends would help portray that a purchase of that nature is what "everyone is interested in" and perhaps motivate young adults to seek more information or make a similar purchase.
I believe that pre-purchase regret occurs most frequently with online purchases. For me, i find this to hold true simply because you could purchase something from eBay or Amazon and not know exactly what you are getting, because you cannot physically examine the product. Therefore, before you even buy it you may anticipate regretting the purchase if the quality, size, functionality etc. are different than your expectations. However, I was surprised last year to read an article on retail stores losing business from people examining a product in the store and then buying it online anyways. This could serve as a way to alleviate online pre-purchase regret, but there is always some level of uncertainty.
I agree with what many people have said so far. I usually experience pre-decision regret when dealing with large purchases, since I make them very rarely. I think about the opportunity costs of the purchasing the expensive product or service. This major amount of money could be going into groceries or other necessities. I feel that it is also hard for college students to think about spending large amounts of money because they are on such a budget and normally have a very little income if they even have an income at all. It is uneasy to think about spending such a large amount of money, especially if you feel that you are being ripped off with your purchase or if you are unsure about how satisfied you will be once you have the product.
I agree with what Shannon said above, if marketers can find a way to ensure that the customer will be satisfied after the purchase of the product, then that will decrease some of the pre-decision regret that customers face. I think marketers need to emphasize the benefit of the product or service, differentiate their products from competitors, and create deals for customers in order to help ensure that they will be satisfied with their large purchase.
As everyone else has essentially highlighted, consumers making high price purchases often feel that the choice was wrong. Consumers might also feel uncertain about their purchase of a particular product or service is because they lacked knowledge of their alternatives and bought impulsively. A need can be felt as though it were a mere desire when consumers do not consider their personal choice model or even consider alternatives at all. A desire can also be seen as a necessity when purchasing a product, yet after thought might reveal that the consumer did not really need it after all.
I think that it is the marketer’s responsibility to honestly portray a product for what it is. It is the company’s job to design, produce, and sell products at a price that reflects its quality. The marketer’s job is to prove to consumers what is already there. As everyone has expressed, higher prices can often ensue pre and post-purchase regret, so I think that marketer’s should care about pre-decisional regret. They need to provide the consumer with honest information about the product. To do this, we see features on websites that compare to other products either of the same brand/distributer or its direct competitors. What marketers can do [and actually do] is simplify price and product quality comparisons to make it easy for consumers to be involved in the products they buy. This makes comparing products easier by allowing the consumer to evaluate the products based on their own criterion. If consumers want to feel more comfortable with their decisions, they must know their alternatives. I believe many consumers feel bad about their purchases ex ante when they did not consider and weigh the attributes of alternative products.
Personally, I experience pre-purchase regret often when a purchase is very expensive. Because I do not earn my own income, and my job this summer was unpaid, when spending my parents money I feel very guilty. These emotions cause me to end up not purchasing many things that I may want, but do not need.
In regards to the situation where the senior girls bought very expensive tickets to Punta Cana, I can see why the pre-purchase regret was not enough to stop them from making a purchase. A spring break senior trip is a once in a lifetime chance. I am sure that while they felt guilt, the guilt was not enough for them to change their minds. In certain situations we are willing to spend the extra money because of the potential value and experience that we will get from spending the money. If the value and positive experience is not worth our money than most likely, the pre-purchase regret will stop us from making a purchase.
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ReplyDeleteMaking “difficult” decisions is hard enough, but the real frustration happens when you know you are being ripped off... but you buy it anyway! In the example we talked about in class, the airlines have identified that that week is a high traffic week, and have jacked up their prices accordingly. In these instances, consumers are extremely likely to feel post-decision regret.
ReplyDeleteI see two main factors that most likely contribute to this feeling. First and foremost is price; if the tickets had been more reasonable (say, $350 instead of $700), most consumers could have justified that purchase because it is about the cost of a regular flight. In tandem with price is usually also a large amount of external pressure to buy. As Emily (Stern) had mentioned in class, she felt obligated to pay the higher price because all of her friends were going on the vacation, and she didn’t want to be left out.
So what can marketers to do help alleviate this instant regret? They could take the framing approach, by demonstrating to potential consumers how the cost of the tickets would be more if they flew another airline, or a different week of the year (although in this case, it sounds like in the weeks surrounding this one, the flights are significantly cheaper…). I think their strongest approach would be to focus on the benefits the customer will receive by paying this premium. Since one of the factors influencing us to buy is external pressure from friends, marketers could work to find ways to show potential buyers images of “friends” having fun at the beach, or use taglines like “Don’t miss out on the best week of your senior year!” If marketers could align their strategies to fit with the hesitations of consumers, those potential buyers are less likely to have post-decision regret.
I read an interesting article on a similar note to this the other day that talked about how British Airways is developing a system to make their airline travel more personalized to the customer. They believe that the customer is happiest when they feel like they are having a tailored experience, and I’m sure they are hoping this will increase their word-of-mouth advertising from happy customers and encourage them to buy again. You can bet they will be working with their marketing department to promote this strategy in lessen that post-decision regret!
http://adage.com/article/special-report-digital-conference-san-francisco-2012/british-airways-future-data-centric-personalization/237357/
I like Emily's idea about creating a framing situation to help alleviate any post-decision regret but in the case of pre-decision regret, I honestly think it is unnecessary for marketers to be concerned with those feelings. It doesn't seem to matter much whether or not the buyer wants to make the purchase if they are just going to buy it anyway. Actually, it might even be helpful for the marketer to create more anxiety around the situation.
ReplyDeleteIf the buyer recognizes the purchase as a bad decision and has no pressure from outside sources to actually buy it, it would be very easy to just say no. However, if the marketer can increase the anxiety around the decision perhaps by creating social pressure (like all of your friends are going on this spring break trip together), this easily rejected bad decision becomes a much harder one to say no to. In this case, the marketer can charge premiums that would not be viable in any other situation.
As Emily said I think that one of the main factors is the price: you feel guilty when you are up to spend a big amount of money for something you want VS something you need. You know it is not reasonable to spend so much. In the case of the trip You could ask yourself questions about the very utility of the buying purchase and you think "will I really miss something if i don't go?" It is never pleasant to hear your friends speak about/make private jokes about the trip they did without understanding anything because you were not there. So, you want to be in! Another factor could be the fact that people don't want to break their "duties": go to Florida for the week-end when you have a lot of homeworks and 2 big exams the next week; go to a concert while your best friend organizes a party for her birthday the same night or eat a cheese burger and a Snickers for a diner with your friends when you are on a diet. In these cases you often know or you have the feeling that your choice is bad/wrong.
ReplyDeleteUnfortunately "to choose is always to forsake".
When you are in a store I think that you feel less the "pre-decisional regret" aspect because salespersons are here to help you and convince you that you make the good choice. You are surrounded by "positive waves". But It would be interesting if marketers find a way to help you weighting the pros and cons for a difficult choice on internet: before buying a product/service on internet you could see a list of positive points to buy it (example with the trip; to buy the fly ticket: the pros: -I need vacation / - I saved money this month to make my wish come true so it is the time to use it /- i don't know this city / - i have no others plans for this week-end...) and like the tests in female magazines you have to check all the affirmations with which you agree and you get a kind of "score" with a comment "Yes you made the good choice! because blablabla". By seeing that you checked 8 affirmations out of the ten suggested it would confirm you / reassure you in your decision. Of course the question is: what would happen if you don't check any of the propositions...
There are certain products and services both companies and consumers know are overpriced commodities. As informed buyers we know the cost of clothing is much less than the value on the price tag yet we buy it anyway. This is because the value they place on the product is a price someone is willing to buy.
ReplyDeleteMarketers' jobs are to price the products at the value a consumer is willing to pay. Usually it is a value we associate with the brand and a perception the consumer and society create. In the case of the airline tickets, it is the superior experience we BELIEVE we will have by investing in the travel to get to the destination. If I went to Punta Cana a different week, I would place very little value on the trip because none of my friends would be there. Good marketers are highly aware of consumer circumstances and price their good/ services accordingly.
I do not believe it is a markets job to alleviate pre-decisional regret. The choice to buy is our own and it is only natural to feel guilty after making a large purchase. If you do not place the same value on a product/ services as the marketer thought you would, you truly would not buy it unless you were not in a sober state.
For example, I know no matter how much money I have, I will never place a value of $1000 on a purse, but many people are willing to spend that sum. Marketers of those purses know the weaknesses of their target market and know the value they place on luxury. The consumer will most likely hand over the credit card if that was their original intent no matter if there is a ploy to deal with the preconceived regret or not.
I don't think it's alright to charge premiums and just ignore pre purchase regret.
ReplyDeleteThe only way the company can do anything about such a feeling is they have salespeople on the ground. In such a case, I feel I'd appreciate it if I was warned about the potential downsides of the purchase. It might appear counter intuitive, but I have a feeling that it might lead to greater loyalty among the purchasers even though it might change the minds of a few people.
A feeling of not being screwed over will go a long way in building trust, which over the long run should lead to greater loyalty.
As one of the Punta Cana Spring Break buyers, I think that post-decisional regret comes down to the idea that there are better (cheaper) alternatives if you wait. The modern consumer is constantly stimulated by sales and clearance racks. This makes us assume that if we buy later the price will decrease. I am constantly looking for the best deals and cheap places to shop for quality brands (TJ Maxx, Marshalls). I always seem to find incredible deals, so when I see clothes that are not on sale I immediately turn away. In this sense, consumers are never feel that they have "shopped their best" when they buy things at retail price.
ReplyDeleteIn terms of this decision or any vacation decision, we all hope the price (or a better option) will come along but usually it is the opposite due to flight price increases and hotels filling up. Buying the spring break trip so early in advance was an extremely expensive commitment, but as it gets closer to the trip people will have less regret because they will realize that it is going to be of great value. People will start to talk about the trip and assure their friends that it will be the trip of a lifetime. Also, I think that for most of us, this is one of the most expensive purchases we have ever made for our pure enjoyment. It is truly a luxury trip and we are feeling the nerves that come with making a purchase of this size.
As we learned in class consumer behavior is a combination of one's thoughts, feelings and actions as they interact with the marketing environment. Thus marketers have a responsibility to address all three of these aspects as they seek to create a mutually valuable relationship with their customer. In order to do this I think marketers need to make the consumer believe that what they're purchasing is worth it. Value = Benefits/Price. So in the case of the expensive spring break vacation, the benefits of the trip, in the mind of the consumer, greatly outweighs the price of the plane ticket. We regret our choices when our actions don't match our beliefs (cognitive dissonance) making it the job of the marketer to convince you of the benefits when the price is high or vice versa. In the words of Warren Buffett "Price is what you pay. Value is what you get."
ReplyDeleteThe factors that cause consumers to make wrong decisions can come from a variety of places. As we talked about after our decision making exercise, it is very prevalent for our decisions to be heavily influenced by other people. In the case of the overpriced flights, this is exactly what happened. There were a select group of people that decided that this was the best option and from their purchase (even though it was ill advised and most people disagree with it) in essence required everyone to follow suite. Simply this is peer pressure. Other factors that cause wrong decisions are spur of the moment decisions, being swayed by a good sales pitch, being drawn in by a deal, and so many other tactics.
ReplyDeleteMarketers should always be concerned with factors that influence decision making and purchasing. In the case of pre-purchase regret, there are a few tactics that marketers could take. In my opinion this is a lot like buyers remorse. What marketers need to focus on is how to comfort consumers with their purchase. In the case of the flights, they should use positive reinforcement (maybe show a picture of a crowded week vs. a slow week so the consumer sees that they are buying a week rather than just a flight). Customer service is also a great way to "talk someone off the ledge". There are many tactics, but they all focus on the same thing, making sure the consumer realizes that they ARE making a good decision.
While post-decision regret is something that I've dealt with personally many times, pre-decision regret is another story. While I have experienced pre-decision regret, it has only really come on more expensive decisions which I make very rarely. The most recent decision that I can remember that falls into this category was my purchase of golf clubs. I knew that I was spending too much on the clubs at the time, but was talked into my decision by friends and coworkers at my internship.
ReplyDeleteFrom reading the posts of others, It seems that my feelings are not unique. Large purchases, like flights to Punta Cana, make us all feel uneasy. I believe that this happens for a number of reasons. First of all, we research these decisions more than any others. We find out, and then focus on, all of the negatives of these choices. Whether it is a lower price flight another week, or the knowledge of lower price golf clubs, we harp on these decisions.
Marketers can help consumers to avoid feelings of pre-decision regret by attempting to show the positive aspects of a decision and offering services like free returns or customer service hotlines. While these services can help consumers, some aspects of this phenomenon are, unfortunately, unavoidable.
As a consumer that has experienced this post-decision regret more times than I wish to admit, I find that these bad decisions often stem from the idea of missing out on something. We wonder and worry that if we do not make a specific purchase that we will miss out on a certain experience. I also find that these purchases typically happen when friends and family are involved. When we make these purchases, we are often more easily persuaded if our peers have already made the same purchase.
ReplyDeleteA spring break trip is the perfect example. As many of my classmates stated, they were fully aware of the fact that they were participating in bad decision-making; however, they made the purchase anyway. In this case, consumers are more likely to pay higher prices because their peers have already made the purchase. By making the (bad) purchase, consumers can ensure that they will not miss out on the experience that the purchase promises, nor will they stray from the decision of the group.
If marketers are able to highlight the positive aspects of a product knowing full and well there may be some pre-decision questioning they are more likely to make the consumer feel more comfortable with the decision. By making positive statements and phrases such as "once in a life time experience" or "one of a kind" marketers help consumers feel this is a once in an lifetime opportunity they can't pass up. The real test comes though when the product arrives, or the experience is over. Was it truly worth it? Hopefully the product in this case lived up to its promise and the marketer doesn't have to concern themselves to much with post-decision regret.
ReplyDeleteThere are several factors that I believe cause consumers to make choices they believe are bad or wrong even before the purchase. First, a consumer may be making a purchase that they know they could receive a better deal elsewhere, however the timing or convenience of purchase may be stronger. In this way, the consumer isn’t completely satisfied with the purchase but recognizes the value and other positive aspects that balance out the purchase. I think that this type of pre-decisional regret is evident in the class example of the Punta Cana Spring Break trip. As with other investments, I think that it is only natural to feel selfish and regretful even before the purchase until the value of the investment shows through and overcomes these emotions.
ReplyDeleteAs aforementioned, I agree that the VALUE of the purchase plays a huge role in response to the prompt. I don’t think that marketers really have the ability to do anything about consumer pre-decisional regret other than reinforce and continuously expose the buyer to the ultimate value of the product. These emotions of pre-decisional regret may still be present naturally by the buyer but the marketer will help enhance the perceived value and alleviate the negative emotions by helping ensure that the product/purchase has a high value and thereby worthy of such a high price tag.
While I try not to make decisions I know I will great before it's even done, I of course have been a victim of pre-decisional regret. When thinking about this concept, most of the times I have done this have been when I have been in a group. Some examples of this may include going out to dinner, purchasing a concert ticket, or going out on a week night. I might not make these decisions individually, but I am much more inclined to if I know my friends are making that decision. I think marketers from some companies can definitely play to this concept. For example, this summer, I worked for a minor league baseball team, and a great portion of their sales came from group ticketing. They offer a lower price for groups of a certain number of more, so it seems like they are getting a good deal. This group pricing method, however, allows them to get more customers than if they were given the same rate as individual customers. Other organizations that might benefit from group rates include concerts, amusement parks, and fairs.
ReplyDeletePre-decision regret is an interesting concept because it applies differently to different products. I believe marketers' should only be concerned with the regret if it affects the buyer's buying patterns negatively. The first factor influencing the severity of the regret is the condition of the competitive industry. If there are a lot of competitors and substitutions available to the consumer, positive pre-decision emotion is imperrative. If the consumer can get what they need elsewhere without any risk of regret, they will. Without the existence of competition, such is the case with a class organized spring break, the price you are willing to pay rises. If the product is a one time buy, such as a spring break trip, the marketer's only concern should be the price point above which people cannot pay; pre-decision regret should not be an issue. They should, however, make sure to deliver a to-par or superior product. If the experience exceeds their expectations they are likely to have a positive post-decision evaluation. They can enhance the experience and the post-decision evaluation by exploiting aspects related to the unique experience e.g. differentiating. The more they feel they got an experience they couldn't get elsewhere the better they will feel about rejecting a lower priced offer. If they are disappointed they will be likely to spread negative reviews and hinder future sales. It is the marketer's duty to protect the financial well-being of the company; if pre-decision regret won't hinder potential money, they should let it happen.
ReplyDeleteThe factors that can cause consumers to make choices they believe are bad include; how the choice is marketed, alternative products/services, opportunity cost, price uncertainty, and social pressures. More specifically there is greater chance of pre-decision regret when the offer is always available, when there are particularly competitive alternatives, when there is concern over the amount or potential fluctuation of cost, and when there is little social reward in making the purchase.
ReplyDeleteI think Tyre made a great point that marketers should care about everything that influences consumer purchasing behavior. Keeping with the factors we identified above, there are several strategies which marketers may adopt to soothe pre-decision regret. Framing choices as limited time offers, distinguishing the product/service from competitors, setting a constant and straightforward price, justify that price, and emphasize the social benefits for making the purchase.
I think that Sean has done a great job pointing out some key factors and specific marketing strategies above. To piggyback off one of the aforementioned strategies, it is absolutely vital that marketers who are marketing a product that they know consumers are often shaky about, market the product not only as a limited time offer, but as a "once in a lifetime opportunity/item." That is exactly how the Spring Break trip I spoke about in class was marketed to me by both my friends and the trip leader...and as we all know, it worked!
ReplyDeleteAnother marketing strategy for pre-decision regret is to reduce cognitive dissonance for the consumer at the moments leading up to the purchase. For example, marketers for retail brands can implement store strategies where the sales staff complement and help everyone who walks out of the dressing room. They could instruct the cashier to make a simple comment like, "I love that top. It's a great thing you are buying now because we are almost sold out." A third marketing strategy for reducing pre-decision regret is to really focus on the most frequent determinant attribute. For example, if the typical determinant attribute for an item is price, you can assure customers that this is the best price they will find, or the absolutely best value for the price.
I agree with most of the class in that I think pre-purchase regret is due to fear that the price of the purchase will not match the value of the product. One thing that I think reduces anxiety about decisions is deciding to buy products from reliable sources and reliable brands. In these cases, the consumer is more confident the value being promised to them is legitimate. When someone books a room at a Ritz Carlton, even if the price tag is hefty, they can rest assured their experience will reflect that price tag. Whether from reputation or past experience, consumers trust the brand and its dedication to customer satisfaction.
ReplyDeleteOn the other hand, purchasing from unknown brands or retail venues may cause more anxiety. This past summer, I waited to buy tickets to a concert and ended up buying them from a scalper right outside of the venue. Handing cash to a man on the street for a paper ticket is probably the least reliable a transaction can get. I had never scalped a ticket on my own before, and the situation I found myself in was foreign and uncertain. I did it anyway, because the alternative was not going into the concert at all. The ticket ended up being counterfeit. Thank goodness the scalper had no idea and gave us our money back. Because of the trouble and stress this purchase caused, all of my future ticket purchases will be through a legitimate ticket dealer even if the price is higher than what I would like to pay. Ticketmaster and Stubhub are trusted brands and sell tickets that I know will be of value.
I am not sure that it is necessarily a marketer’s responsibility to assuage pre-decision regret felt by consumers, but I think that developing and maintaining a consistent and reliable brand can contribute to a more relaxed consumer. Consumers can trust that they will receive the value they are paying for.
I completely agree with Madeline about the pre-decision regret issue. Often right before a big purchase, I know I'm going to regret spending so much money. This rarely deters me from buying the product though if it's something I really want. However, there are times when the pre-decision regret is too much and I ultimately do not make the purchase.
DeleteBrand reliability is a huge factor in whether or not I choose to buy the product. I think that marketers can capitalize on this by reassuring the customer of the product's value. You want to feel as if what you are buying is worth the large amount you're spending. It's all about expectations like we discussed in class today! Marketers need to make sure that customers believe their expectations will at least be met if not exceeded. Negatively disconfirming expectations will only lead to increased post-decision regret.
As mentioned above, I too believe that factors influening consumers to purchase things they do not necessarily want come from a consumer's internal desire to "fit in" in some way. Likewise, I agree that most pre-decisional regret comes post large purchases. How long - if at all - this feeling lasts must surely be dependent on how satisfied for dissatisfied the consumer is post purchase. For example, if the new car is always enjoyable to drive, gets lots of compliments, doesn't have mechanical issues, and makes you feel "cooler," than the purchase will likely not cause any regret.
ReplyDeleteIn order to eliminate pre-decisional regret, marketers (advertisers, really) should emphasize how a consumer will feel post a large purchase. It would also be wise to communicate to consumers that these good feelings will last long enough to make up for the price tag. I think any consumer who makes a big purchase wants to be positive that they will still be happy with their purchase six months down the road. If marketers could do this, consumers may be less apt to focus on short term losses and instead concentrate on the long-term gains.
I completely agree with Shannon's point about how marketers must emphasize the satisfaction a customer will feel after a major purchase decision or investment when they cannot frame the situation to convince the consumer that they are getting a "deal". Like Celia mentioned, consumers these days are very focused on getting the best deal possible--perhaps because of lasting effects of the recession on consumerism--and are extremely hesitant to make big-ticket purchases. By communicating the lasting feelings of satisfaction and social benefit that can come from these purchases, marketers can help ease the worries of consumers to spend large amounts of money on one item, and prevent feelings of post-purchase regret.
ReplyDeleteI believe that in our age group, perceived social benefit is one of the biggest motivators to buy a big-ticket item. Much of our post-decision regret lies in the fact that we are worried that the social benefit will not outweigh the actual cost once the trip has arrived or once we have purchased an item. Our anxiety that the cost will outweigh the benefit drives us to seek reassurance from our peers that the cost will be worth it in the end. So what does this mean for marketers? Marketers could focus on how to create buzz for big-ticket trips or luxury goods through social media outlets that can reach this target market and then allow potential customers to "share" this information with their friends with links or "share" buttons. A post by a student travel site on a social media medium that can then be reposted by other interested friends would help portray that a purchase of that nature is what "everyone is interested in" and perhaps motivate young adults to seek more information or make a similar purchase.
I believe that pre-purchase regret occurs most frequently with online purchases. For me, i find this to hold true simply because you could purchase something from eBay or Amazon and not know exactly what you are getting, because you cannot physically examine the product. Therefore, before you even buy it you may anticipate regretting the purchase if the quality, size, functionality etc. are different than your expectations. However, I was surprised last year to read an article on retail stores losing business from people examining a product in the store and then buying it online anyways. This could serve as a way to alleviate online pre-purchase regret, but there is always some level of uncertainty.
ReplyDeleteI agree with what many people have said so far. I usually experience pre-decision regret when dealing with large purchases, since I make them very rarely. I think about the opportunity costs of the purchasing the expensive product or service. This major amount of money could be going into groceries or other necessities. I feel that it is also hard for college students to think about spending large amounts of money because they are on such a budget and normally have a very little income if they even have an income at all. It is uneasy to think about spending such a large amount of money, especially if you feel that you are being ripped off with your purchase or if you are unsure about how satisfied you will be once you have the product.
ReplyDeleteI agree with what Shannon said above, if marketers can find a way to ensure that the customer will be satisfied after the purchase of the product, then that will decrease some of the pre-decision regret that customers face. I think marketers need to emphasize the benefit of the product or service, differentiate their products from competitors, and create deals for customers in order to help ensure that they will be satisfied with their large purchase.
As everyone else has essentially highlighted, consumers making high price purchases often feel that the choice was wrong. Consumers might also feel uncertain about their purchase of a particular product or service is because they lacked knowledge of their alternatives and bought impulsively. A need can be felt as though it were a mere desire when consumers do not consider their personal choice model or even consider alternatives at all. A desire can also be seen as a necessity when purchasing a product, yet after thought might reveal that the consumer did not really need it after all.
ReplyDeleteI think that it is the marketer’s responsibility to honestly portray a product for what it is. It is the company’s job to design, produce, and sell products at a price that reflects its quality. The marketer’s job is to prove to consumers what is already there. As everyone has expressed, higher prices can often ensue pre and post-purchase regret, so I think that marketer’s should care about pre-decisional regret. They need to provide the consumer with honest information about the product. To do this, we see features on websites that compare to other products either of the same brand/distributer or its direct competitors. What marketers can do [and actually do] is simplify price and product quality comparisons to make it easy for consumers to be involved in the products they buy. This makes comparing products easier by allowing the consumer to evaluate the products based on their own criterion. If consumers want to feel more comfortable with their decisions, they must know their alternatives. I believe many consumers feel bad about their purchases ex ante when they did not consider and weigh the attributes of alternative products.
Personally, I experience pre-purchase regret often when a purchase is very expensive. Because I do not earn my own income, and my job this summer was unpaid, when spending my parents money I feel very guilty. These emotions cause me to end up not purchasing many things that I may want, but do not need.
ReplyDeleteIn regards to the situation where the senior girls bought very expensive tickets to Punta Cana, I can see why the pre-purchase regret was not enough to stop them from making a purchase. A spring break senior trip is a once in a lifetime chance. I am sure that while they felt guilt, the guilt was not enough for them to change their minds. In certain situations we are willing to spend the extra money because of the potential value and experience that we will get from spending the money. If the value and positive experience is not worth our money than most likely, the pre-purchase regret will stop us from making a purchase.