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Counteracting Consumer Confusion COUNTERACTING CONSUMER 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. Consumers 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 brand 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 brands, 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 consumer choice 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
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