Monday, November 18, 2019

Level Option Expectations in Customization

Shoppers are attracted by the possibility of customizing a product or service to fit their particular needs and desires. But those same shoppers can feel overwhelmed when a great many categories of options and options within each category are available. A straightforward way for a seller to address this conundrum is to guide the shopper through the choices step-by-step. In selecting a laptop computer, the shopper could first be asked about operating system, then after that choice is made, asked about memory capacity, and so on.
     Unfortunately, this technique frequently has an effect opposite to what’s intended. It turns the shopper into a maximizer. Maximizers are consumers who want to hold out for the best possible alternative, with the result that they’ll delay or even walk away from purchase decisions. Further, when people in a maximizing mindset do buy the item, perhaps because they have a pressing need for at least some alternative, they leave the transaction feeling frustrated.
     Studies at University of Denver and University of Florida indicate that the step-by-step method works best with shoppers who have given evidence of satisfaction with products which are good enough and with products in which objective ratings are lacking. When there are clear objective ratings for the options in each category, a matrix presentation works well. Here a table of all the categories and all the options within each category are presented at once to the shopper.
     If you’ve concerns about the step-by-step bringing out maximizing tendencies, level the option expectations. Give good points about each alternative. First, this helps the shopper feel good about whatever choice they make. Second, it makes the decision more challenging. Maximizers feel better when important decisions are at least a bit difficult.
     Researchers at University of Alberta and University of St. Gallen evaluated another technique for avoiding the problem: Develop a limited number of combinations of the major item attributes, then encourage the shopper to choose one of these and personalize using the other attributes.
     With shirts, automobiles, vacation packages, jewelry, and financial products, the researchers identified clear benefits of this customization via starting solutions. Compared to use of a step-by-step or matrix method, purchasers were more satisfied with what they ended up buying and found more mental stimulation in using the items. The businesses using this method were pleased how customers selected a greater number of item features, resulting in a higher-dollar transaction.

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