In the past, when someone was out in the wild being chased by tigers (you know, as you do), fear caused a ‘fight or flight’ response. In today’s society, fear leads us to procrastinate due to choice overload or, conversely, plunge headfirst into things due to fear of missing out.
People respond to the feeling of fear with fast action and save the rational thinking for later, because otherwise how would we function in our daily lives?
Read on to find out why and how fear influences purchase decisions, what are shoppers' biggest fears and how brands can get around these to ensure - ka-ching - success.
Taking the leap.
Everyone fears the unknown to some extent. People are also constantly in a rush, and let’s be honest… we can be pretty lazy. So, we tend to go with what we know.
The art of selling a product means convincing a shopper to go into the unknown by giving your brand a try. Why should they take that leap?
"Fear is the oldest and strongest emotion of mankind."
(H. P. Lovecraft)
We feel the pain of loss twice as much as the pleasure derived from a gain (Lehrer), or as Kahneman and Tversky put it:
“...in human decision making, losses loom larger than gains.”
The risk assessment.
Standing at the shelf, faced with a myriad of options, most people will choose the brand and product they have always chosen.
The fear of an inferior wash for your white shirts or an embarrassing choice of wine rears its ugly head… why risk the social shame, feelings of regret, or the lighter wallet?
People might take some more time deciding on a new car but in a supermarket or in many retail environments, buying cereal or makeup, shoppers will gravitate to what they have always bought.
It is also true that these days, younger generations are more willing to try new brands and products due to the prevalence of customer reviews, cheap deals or trials, and Instagram influencers who promote up-and-coming small businesses (rather than big established brands).
However, this is dependent on the type of product (for example, this is far more effective for fast fashion at a low price point than for supermarket staples), the target audience (age, income, life stage and attitudinal factors) and the buying environment (it’s more effective online than in store).
Ghosting your brand.
In fact, shoppers may even walk away from a purchase if the decision seems too hard (check out our blog 'The Paradox of Choice').
Their decision-making becomes thwarted by fear and they simply do nothing. People regularly walk out of shops empty handed, not because the prices were too high, but because they weren’t able to make a decision.
“Psychologists refer to this as a “status quo bias,” a form of inertia based on loss aversion. In other words, people feel a strong bias toward doing nothing or maintaining their current or previous decisions.”
“...people generally prefer status quo—even if they say (or their actions suggest) they’re open to new ideas or ways of doing things”.
Why fix what ain’t broke? Well, even if it is a little bit broken, can I be bothered to search out an alternative (one that might not even turn out to be an improvement!)? (Cue perfume dilemma in the duty-free section of the airport. Totally relatable, amiright?)
Confusion, just as much as choice overload, can cause problems for brands when it comes to shoppers’ decision-making process.
Okay, so now we know that we’re all big scaredy cats. What exactly are we scared about?
What are shoppers' biggest fears?
- We fear disappointment: Will the product live up to expectations or will it be a big, fat fail?
- We fear embarrassment: Will my friends and family be impressed? Is my social or professional reputation on the line?
- We fear paying too much: Am I being ripped off? Have I got a bargain? Should I have compared more options (or dare I say it - looked on Amazon?!).
- We are creatures of habit: We run on autopilot, do most things with little thought and are often afraid of change.
How can brands get around this?
1. Short term price promotions like ‘buy one get one free’ or an alternative solution which lets the shopper try, or even ‘try before they buy’.
This can alter buying behaviour and convince shoppers to give your brand a try - without starting a price war with your competition.
“Getting consumers to try something is one of the best ways of getting them to buy."
(Scott Bearse, Deloitte)
Deloitte found that customers using fitting rooms convert at a rate of 85% compared with 58% for those that do not do so.
2. Once shoppers give your brand a try, ensure they have a great experience. This has to be better than the experience delivered by their usual brand, or they will simply revert to previous buying patterns.
3. Create repeat purchases through loyalty cards or similar ongoing reward systems.
4. Use social proof, for example customer testimonials and reviews, to reassure shoppers about the products that they’re buying. Reduce the perceived risk.
5. If possible, break down the sale into digestible (less scary) chunks, such as offering a trial food delivery box before asking the shopper to commit to a weekly delivery.
6. KISSmetrics advise looking at what consumers want when they buy your product and asking the question ‘what is the worst that could happen?’
So, you’re selling a piece of jewellery - is someone more likely to pick it off the shelf because it looks pretty or because they’re afraid their fiance won’t say 'yes' if they don’t buy the most impressive ring? Reassure the shopper by addressing their biggest fear.
Over to you.
We're passionate about bringing brands closer to their consumers. Give us a call on 02 8097 0200 or send us an email on firstname.lastname@example.org to see how we can help.