Buyer’s Remorse Begone!

Buyer’s Remorse, or in economics terms the “curse of the winner” happens when the ‘first price’ winner completely over-valued the product or service they paid for.

The term, “first price” means that the buyer bid and paid for the product first, at its presumably highest price.

Have you experienced buyer’s remorse before? It’s very possible. For example, let’s say you paid $3.15 a gallon for gas, and you go to the next block and you see gas for $3.02.

Remember the feeling that went through your head? Yes, that’s it.

Or when you go shopping and find a exact pair of pants you were looking for, buy them immediately at one place, only to find them at the second place you stop for 30% off.

Oh the pain!

Marketers must be aware that these situations happen, and must be ready to combat them. How should they do that? Well, the best way to solve a problem is to prevent it from happening in the first place. And branding can do that.

Branding adds an intangible value to a product or service. It can add the reasoning behind the perceivably high or low price, the availability, and the message the organization is attempting to convey.

The reason why buyer’s remorse happens is because the buyer fails to achieve the level of satisfaction they associate with the price they paid. Big price + big satisfaction= buyer is happy. Low price + big satisfaction = the buyer is ecstatic.

Branding can help organizations achieve the last equation. The price, whether its monetary, time, traffic, whatever, can be trumped with the right marketing activities. Here is a quick checklist-

1. Make sure the product or service delivers what it promises.
2. The product or service is a piece of your target market’s life. It has to resonate with the buyer’s lifestyle.
3. That product or service represents something bigger than themselves and the buyer. The buyer is willingly contributing to something, whether its an idea, cause, or movement.

If your organization can hit all three points, then you’re on your way to banishing buyer’s remorse! Well done folks, well done.