COUNTERACTING CONFUSION

By Vincent-Wayne Mitchell Too many items for sale, too many shops in which to browse and Alan Giles and too little time to buy it all. today are inundated with immeasurable information on more products sold through more channels and promoted in more ways than ever before. In this article for Criticaleye, Vincent-Wayne Mitchell of Cass Business School and Fat Face’s Alan Giles look at what causes consumer confusion and how it can be reduced to make sales shopping less draining, giving retailers a greater share of the pie.

www.criticaleye.net 01 The causes of consumer instances, simply added to the confusion. Many experienced purchasers, who normally confusion consumers invest hours researching a relatively buy from you, are less likely to compare minor purchase online, losing sight of whether the products they buy thoroughly and One obvious source of perplexity is this investment in time could ever provide a regularly, and are less likely to be the nature of the products themselves. return in terms of a better purchasing decision. confused than inexperienced ones. Televisions, for example, are inherently more complicated than shampoos. Finally, pricing can cause consumer This is partly because although they Technically complex products, such as confusion especially when factoring in consider a greater number of information games consoles, mobile phones and PCs, the relative benefits of loyalty schemes, dimensions, heavy users look at fewer present compatibility issues and dramatically money-off, percentage off, three-for-two alternatives, and the knowledge that stems increase the anxiety of purchasing. However, offers, etc. A myriad of short-term ‘sales’, from experience facilitates information there are several other causes of confusion and a nagging sense that there might be processing. Also, firmer product beliefs, like marketplace complexity, time pressure, an even better deal to be had by waiting, accrued from experience, make purchasers store layout, channels and pricing. adds to the stress and confusion. selectively perceptive and reduce consumers’ scope of search. This means that those Marketplace complexity The Negative Consequences purchasers on which companies should of Confusion focus their attention and aim to help, are A current problem in many markets is their the prospective customers who either do not bewildering number of products, including We view confusion as a negative mental state, buy or only occasionally buy from them. many product-line extensions that present only uncomfortable and unpleasant for consumers minor emotional or rational differentiations to because it’s linked with frustration, irritation, To give some other clues on how purchasers. This information overload is not anxiety, or even anger. However confusion companies can help reduce confusion, we only caused by a proliferation of , but has also been associated with unfavourable now look at how purchasers themselves also by an increase in the amount of `decision- consequences for companies such as, negative mitigate the unpleasant feelings.

Confusion Reduction Strategies

(1) Train sales people better Confusion is also a major barrier Confused purchasers will initially suspend the decision-making process and become temporarily indecisive and inactive. This is for increasing market share when help is needed and needed quickly. Sales forces could be better trained to spot the signs of confusion, as purchasers who relevant’ information on the product and word-of-mouth, dissatisfaction, cognitive are helped in this phase will be very grateful. in the environment surrounding a product dissonance, decision postponement, shopping purchase. The greater the number of things to fatigue, reactance, decreased loyalty and trust (2) Retail Editing: Narrow down be considered, the more difficult the choice and confusing other consumers. Furthermore, the set of alternatives will be (or the more thinking cost incurred). it can result in possible harmful outcomes (eg, Purchasers often reduce the number of product misuse that leads to physical harm). alternative stores, products and brands they For retailers, the shopping environment In addition, confused purchasers can consider in order to avoid confusion. Just as the relates to the store layout, variety of experience a reduction in their own confidence editor of a newspaper determines what stories products on offer, arrangement of the (or ability) to make a judgment or evaluation consumers will see and consume that day, so merchandise, music, colours, lighting, etc. regarding any facet of a product or service the retailer is a brand ‘editor’ in deciding what Many retailers change the positioning of (cf Sainsbury’s sleep shopping ad campaign). consumers will be able to buy conveniently. product categories within the store during sales periods in order to get consumers The motivation for using, let alone for Retailers then strive to make their stores (and to encounter and purchase products they seeking, new information is lacking and stories) interesting to the reader/consumer would not usually pass by - potentially much of the information in the choice and struggle to find the right mixture of confusing consumers. Confusing layouts environment will `bypass’ the decision- offerings. They need to stock products that often arise from retailers taking into account maker, which is not a good outcome for are highly valued and remove unhelpful/ non-consumer orientated factors such companies. An important consequence duplicate choices to leave ‘useable’ choice. as margin mix operational convenience, is also on whom the purchaser’s blame sourcing arrangements (eg, when the falls for their confusion. The more they Good retailing has always been about skilful supplier replenishes and displays stock attribute their confusion to the company, editing; offering enough choice to meet a direct), and even health and safety. the greater the effect will be on company- spectrum of needs, but not so much as to related consequences. Importantly confuse, all subject to a threshold of quality, Additional channels to market, eg, online therefore, these negative emotions can be value and taste. A retailer’s ability to do this e-tailers, have broadened and transferred to the retailer further damaging effectively comes down to trust – hard won, therefore added to the stress and confusion. their ability to remain in the customer’s but easily lost. John Lewis is a good example The information overload is compounded portfolio of companies which they frequent of this. It stocks fewer electrical goods than by new sources of information and advice – or are on their preferred supplier lists. other electrical retailers, but the stock carries shopbots, blogs, third-party and consumer their recommendation as representing true reviews, etc. Ironically such innovations Confusion is also a major barrier for choice for their customers. In addition, designed to help consumers have, in some increasing market share. This is because putting key point of sale information in 02 www.criticaleye.net precisely the area where customers are likely departments within companies. This to have queries or giving customers pagers presents a huge opportunity for retailers. to inform them of when an advisor will be available to help them are just some of the Retailers have the power to reduce purchasers’ other ways retailers are attempting to help confusion by using their staff more effectively consumers from becoming confused. and having enough informed and well-trained staff to cope with demand. For example, B&Q Retailers must remember that the product recognises that a high percentage of power is the hero of the store story and that point tools are bought by women at Christmas of sale information is there to support and therefore employ ex-tradesmen and quick and confusion-free product selection. experts as well as over 50 DIY enthusiasts Some companies have made a virtue of to advise credibly and with whom the appealing to purchasers who are time- consumer can share the final decision. constrained by appealing to their emotional state and consequently reducing their (4) Encourage brand loyalty anxiety and meeting a genuine need. For As brand loyalty reflects habitual purchasing Companies can help in encouraging example, Lastminute.com create a value and requires less decision-making, info-mediation in complex markets by platform of the best deals just when you information seeking and brand evaluation, doing several things. First, they can lobby need it from the comfort of your armchair, the prospect of having to do less information government to set up some form of info- or Lands End clothing retailers who allow processing and comparison is useful in mediation. For example, the standard customers to return any faulty product reducing confusion. However, in order representation of ingredients on food at anytime. In doing this they will reduce to stimulate this strategy in purchasers, labels or the way energy efficiency of the stress associated with finding and both manufacturer brands sold by retailers appliances is measured and presented to purchasing the products purchasers want. and retailers’ own-brands need to have customers. Other forms of info-mediation strong points of difference. The greater supported by the government are bodies (3) Share/delegate the purchase decision the brand differentiation, the greater the such as the Citizens Advice Bureau. Confused purchasers can often involve loyalty and the easier it is to shop in a other people in the purchasing decision confusing environment. Therefore, loyalty Private companies can help to reduce by asking a friend, colleague etc. to can be viewed as a strategic (conscious or confusion too by effective personal accompany them to help them comprehend non-conscious) reaction to overload. For sales agents or setting themselves up as the choice environment whilst shopping. example, Crate and Barrel in the US have a independent advisors. Finally, consumers Alternatively, they may delegate the task very clear positioning and point of difference can help other consumers as we have seen completely. However, these people can in the home fashion space in consumers’ happen in the past with product category give opinions, which contrast with the minds based upon fashion colours. opinion leaders and now with the burgeoning buyer’s opinion, convey inaccurate or use of social networking sites. These three unclear information about a product and/ (5) Create ‘info-mediaries’ types of info-mediators can help reduce or store and actually further confusion. When there is confusion in the marketplace, confusion in three main ways. First, via Other strategies purchasers employ is there is a role for ‘info-mediaries’. These web-based systems which help consumers to ask other more competent people to are people, processes or organisations, navigate through the complexity such assist them. This helps explain the rise of which can reduce the confusion by as, Confused.com. Second, via people- personal shoppers in many department ‘translating’ the information into more based advice services such as the Citizens stores and the rise in the professionalism meaningful and manageable chunks Advice Bureau and third, via organisational and power of many purchasing on which a decision can be made. endorsements such as Which? Best buys.

Web based People Based Organisational Expert Systems Advice Endorsements

BSA, Which? Tax Helplines Government & NGOs NHS Direct kite marks, Sustainability Consumer Direct marks

Carphone Warehouse Independent Private Companies Amazon Confused.com Financial Advisors

Martin Lewis Peer to Peer Individuals Minister for Health Moneysavingexpert.com Social Network Sites

www.criticaleye.net 03 figure 1:

TRAIN MARKETPLACE SALESPEOPLE COMPLEXITY BETTER

NARROW DOWN THE TIME PRESSURE CONFUSION SET OF ALTERNATIVES PURCHASER REDUCTION CONFUSION STRATEGIES

STORE LAYOUT SHARE/DELEGATE THE/ PURCHASE DECISION

CHANNELS BE BRAND LOYAL

PRICING INFOMEDIATION

CONCLUSION Companies should do a confusion audit Vincent-Wayne Mitchell to find out which consumers are most Professor of Consumer Confusion is akin to (a reverse) `hygiene’ confused in order to rectify it. As part of , Cass Business School factor when shopping; its presence causes the audit they also need to check where dissatisfaction, but its absence does not confusion can occur; from their positioning Vincent has done extensive research into motivate purchasers to purchase or lead to strategy, what do you stand for? For retailers, marketing and with satisfaction. Companies with a reputation for having a confusing retail layout through particular focus on consumer decision-making, generating customer confusion will lead to which consumers have to navigate can complaining behaviour and risk-taking. He lower levels of purchaser brand choice and be troublesome. For other companies, sits on the editorial boards of six international journals, is associate editor of the International frequency of visits, while companies with a having a product mix, display or packaging/ Journal of Management Reviews and is an reputation for clarity and ease of shopping instructions that are confusing might be Expert Adviser for the Office of Fair Trading are likely to enjoy greater levels of purchaser the problem. In fact companies should do and Head of Marketing at Cass. He teaches trust and reputation and result in increased a confusion audit and check all the points Marketing to MBAs and EMBAs and has been visiting frequency and duration. This is of confusion that typical purchasers face teaching postgraduate marketing for 17 years. because confusion can be unpleasant, the from entering to leaving. The ‘supermarket Alan Giles eventual outcome or consequences flowing from sweep’ test should be applied whereby Chairman, Fat Face Ltd. it can be negative, eg, buying the wrong mystery shoppers do ‘test’ the shopping thing, not fully utilising products and the environment and product display, help danger of misunderstanding or misusing etc. by shopping under time constraints. products, which might result in physical Alan has many years experience in retail harm. In particular, confusion can seriously © Criticaleye 2010 businesses. He is currently Chairman of Fat Face Limited and a Non-executive director of undermine the four pillars of consumers Rentokil Initial plc and Wilson Bowden plc. rights, namely the rights to be informed Alan also serves on the board of the Office (understand the information), to choose (and of Fair Trading. Alan joined HMV Group as not be overloaded with choice), to safety (and Chief Executive in March 1998 following its not be confused by complicated manuals leveraged buy-out and led the Group through and instruction), and to be heard (and not its LSE flotation in May 2002. He left the be unable to work out how to complain). Group at the end of 2006 to develop a portfolio of non-executive and teaching roles.

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