Spread Risks to Family for Values-Laden Buys

When deciding whether to make a purchase, each shopper consciously or subconsciously weighs the risks. Of the various types of risk, two are called “social” and “psychological” by consumer psychologists.

• Social risk: “If the people I admire know I’m using this product or service, am I in danger of falling out of favor with them?”
• Psychological risk: “Does using this product or service conflict with the image I want to maintain of myself?”

     A retailer can address the social risk by encouraging shoppers to bring along their friends or by making it easy for shoppers to contact their friends via mobile devices. As to psychological risk, recent research indicates that having shoppers bring along the household is a help.
     A marketing researcher and a psychologist at Umeå University in Sweden explored what influences a value-laden innovative purchase decision—buying a vehicle that uses electricity and biofuels instead of fossil fuel gasoline. Not surprisingly, the study found that one major determinant was the nature of the consumer’s values regarding protection of the environment. Those wanting to maintain a image of themselves as guardians of the environment were more likely to buy.
     It turned out that another important determinant was the size of the consumer’s household. Those living in multi-person households were more likely to buy the innovative vehicle. Supporting this finding, researchers at University of Texas-Arlington discovered that when accompanied by a family group, a shopper relaxes concerns about making risky decisions.
     The divisions between family group and household are fading. Preparing for last year’s count, the U.S. Census Bureau acknowledged that married couples make up a minority of households. A majority of women live without a spouse, and about 5% of households consist of unmarried opposite-sex partners. The Census Bureau uses household as a basic unit of measurement regardless of the occupants’ relationship.
     Even though the definition of household is broadening, the views of a consumer’s parents—or parent substitutes—are particularly influential. For instance, researchers at University of Western Ontario and University of South Carolina find that when the family group includes young adults and their parents, the parents’ attitude toward innovation and personal values carries more weight than the siblings’ views. The researchers advise that if you want to get the next generation to try new products or services that impact personal values, convince the shopper’s parents before asking the prospective purchaser what they think.

Click below for more:
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