Consider Shaming Captive Consumers

Encouraging our customers, clients, and patients to take responsibility for their behavior offers advantages to us. Placing a mirror behind the places where you accept complaints reduces the intensity of customers’ dissatisfaction. When a consumer sees an image of herself, her self-awareness increases. This leads to the consumer subconsciously considering what part she played in the unsatisfactory experience.
     When a health care professional is meeting with a patient who has not complied with medical recommendations, subsequent compliance is more likely if the health care professional demonstrates disappointment and impatience while analyzing the reasons for noncompliance and developing a corrective action plan.
     However, this holds true only when the complaint desk staff demonstrate their commitment to solving the problem and when the health care professional’s initial reaction is positive concern for the noncompliant patient. We want to induce guilt without activating shame. The distinction is that shame arises when a person perceives not only that they’ve behaved badly, but also that the bad behavior signaled an immoral personality.
     Guilt motivates attention to the specific behavior or behaviors. Shame instead motivates attention to the self in ways which make it harder for a person to see their positive qualities. It can lead to self-punishment. When a consumer feels ashamed, they’ll want to run from those who are making them feel that way, and we don’t want our consumers running away from us.
     Yet how about the situations in which the consumer can’t run away? In this case, a small dose of shame might turn the trick.
     A set of studies at Imperial College London, University of Chicago, Monash University, and University of Warwick explored reminder alternatives when a government agency has overpaid a citizen on a claim and is now demanding that the citizen reimburse the excess. Ivo Vlaev, Professor of Behavioural Science at Warwick Business School, and his fellow researchers compared two messages to be sent to debtors. One message framed the nonpayment as a matter of omission or inaction: “Our records show you have not been in touch about this.” The other message framed the nonpayment as an intentional commission: “Our records show you have not been in touch about this. Previously, we treated your lack of response as an oversight. Now, if you do not call [telephone number], we will treat this as an active choice.”
     Repayment rates within 30 days of message receipt were almost double with the commission phrasing compared to the omission framing, 23% rather than 12%.

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Mirror Responsibility at Complaint Desks 

Increase Health Compliance by Easing Stigma 

Aim Away from Shame 

Round Down Accounts Receivables 

Identify When to Use Self-Identity Appeals

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Swirl Absentee Ballots for Windy Weather

It makes sense that high winds on Election Day dampen voter participation. People hesitate leaving home or work when the weather is bad. It’s less obvious how even moderate wind speeds lead voters to select more cautious policy alternatives, on average, when they get to the polling place.
     The explanation is that moderate wind speeds, compared to lower wind speeds, activate an urge to protect against losses, according to a team of researchers at University of California-Berkeley, Harvard University, University of Zurich, and Columbia University. The effect is an example of the promotion-focused versus prevention-focused distinction seen throughout consumer psychology research. People in a promotion-focused mindset seek opportunities for growth and are interested in creativity. People in a prevention-focused mindset seek security and avoid risks. The researchers verified in their studies that outdoor windy conditions move people toward a prevention focus.
     The researchers emphasize that this makes a difference only when the voter is choosing between what the voter perceives as promotion- versus prevention-oriented alternatives. The study data were collected on ballot issues such as immigration restrictions, Scottish independence, and Brexit from voters who voted or could vote on those issues.
     Along with reporting the results of their findings regarding wind speed, the researchers cite prior studies showing how other weather phenomena, such as rain and heat, influence decisions. They advise election administrators to stay aware of these factors, which may appear irrelevant. To bring election results closer to the true sentiment of the people, the researchers recommend making mail-in voting and early voting available. Spread the effects. Windy weather on Tuesday may have been preceded by a week of calm weather, and a windy weekend might be followed by a calm Election Day.
     Evidence is it’s not just a moderate wind which can influence decision making. Researchers at University of Massachusetts and University of Houston found that a gentle wind blowing in a person’s face increases openness to innovative ideas—the opposite of what was found for a moderate wind in the election influence study. These wind-in-the-face studies compared the effects with those of wind blowing on a person’s back.
     The front of the head is more sensitive than the back to airflow. The researchers attribute the effect to energizing the individual. It should be particularly relevant for the many consumers in society who are not only constricted in their thinking, but also too fatigued to think innovatively.

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Promote Supervision Which Prevents Problems 

Dog Decision Rigor During Dog Days 

Unwind Rejection Using Wind in the Face

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Grasp Profits from Enjoyment of Crafting

In my tale for today’s post, a man possessing fine aesthetic tastes comes across a distinctive handmade vase at a craft fair. He locates the artist to express his admiration and present a special request. “I’d like to purchase two more which look just like that one to give to friends. How much would it be for the three?”
     The artist thinks for a bit, then replies, “You saw that I want $75 for the vase that’s there. My price for the second one would be $100 and for the third one, $150.”
     “I don’t understand,” says the man. “Why would you charge me more for the copies?”
     “It’s because when I make duplicates, it changes the joy of craftsmanship into the burden of toil,” explains the artist.
     An explanation consistent with conclusions from a study at Tilburg University, Northwestern University, and Lehigh University. Well, actually, perfectly consistent with the obverse of one of the conclusions. The researchers report that sellers will accept lower prices for merchandise they enjoy making and services they enjoy providing.
     But it’s an additional conclusion which is of more interest to retailers: Shoppers are willing to pay higher prices when they learn that the seller enjoyed producing the items. Shoppers are also more likely to click on ads for the items and to end up purchasing the items. The researchers’ explanation, supported by their studies, is that both sellers and shoppers view production enjoyment as leading to higher quality outcomes, but only the shoppers rely on this view when determining a proper item price.
     An important condition is that these conclusions apply only when the shopper believes that creating the particular item requires specialized skills. We don’t expect to see it with automated mass production or simple manual assembly.
     The production enjoyment effect is quite different from the commonly experienced endowment effect, in which, with items carrying an emotional attachment for the seller, sellers tend to set noticeably higher prices on items than shoppers are willing to pay. A possible reason for the difference is that the endowment effect is usually encountered when the seller is not the same person as the manufacturer, such as with sales of secondhand merchandise.
     When facing the endowment effect, consider lowering prices. When facing the production enjoyment effect, consider raising prices. And for items which require specialized skills to produce or provide, give shoppers evidence of your enjoyment.

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Harvest the Joy of Selling Your Creativity 

Wash Your Hands of the Endowment Effect 

Gimme Some Lovin’ Handmade

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Slow Shipping to Reduce Returns

Provide customers ample time to work through regrets about purchasing from you. That’s a takeaway tip suggested by a study based at Julius-Maximilians-Universität Würzburg and Goethe University.
     The researchers analyzed data from about 1.8 million ecommerce customer orders. The average delivery time for an order was about five days. With an important exception, the rate of item returns for items delivered in a shorter time was significantly higher than the rate for items delivered in a longer time. The exception: When delivery was substantially delayed, rate of item returns climbed.
     Two explanations for this exception are that customers get irritated at the retailer when a delivery date promise is not met and that when delivery is substantially delayed, people find another source of supply.
     The researchers’ explanation for the main effect of somewhat longer delivery time decreasing item return rates is in terms of cognitive dissonance, a phenomenon familiar to every introductory psychology student, often via its nickname “buyer’s remorse.” Often at some point in time after making a nonroutine purchase, the consumer doubts the wisdom of their decision. The highest probability for buyer’s remorse is shortly after the purchase, so this is when we’d expect item returns to be most likely. As time passes without an item return, the consumer begins rationalizing the purchase, generating for themselves reasons the purchase was not, in fact, deserving of remorse. We’d expect the rate of returns to drop. And this is what happened in the study when delivery time was longer rather than shorter. The cognitive dissonance explanation was supported by an informal follow-on study in which some customers were asked about reasons for their returns.
     The researchers report the evidence from past studies that shoppers are attracted by promises of prompt delivery, and they recommend that retailers balance this factor against the advantages of lowering costly returns. Their filtering of the data collection is still another argument for using the study results as an impetus for your own exploration of what delivery times are most profitable for you. Data in this study were collected from only U.S.-based shoppers at one very large online retailer and excluded transactions in which it appeared the customer was ordering a large number of similar items because they weren’t sure which size would fit best, for instance.
     If longer delivery time promises aren’t advisable, consider other research-based methods, such as putting a clock image on the order form, to reduce item returns.

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Delay Assumptions About Fast Shipping 

Sharpen Time Sensitivity to Reduce Returns 

Quote Measurement Units for Future Buys 

Shower Cold on Regretful Customers

Motivate the Rushed Toward Motivated Reasoning

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Disconnect Crowding for Socially Disconnected

In his year 2000 book “Bowling Alone,” Robert D. Putnam described a fading of interpersonal social support in culture compared to the period of 1950 to 1960. Americans were joining fewer clubs and serving less often on political committees. Although the number of bowlers had increased, the number of people who bowled in leagues had decreased.
     Mr. Putnam attributed the phenomenon to the burgeoning of technologies such as television and the internet which satisfied needs absent mingling with others.
     Since publication of that book, we’ve reason to think the trend may have turned. There certainly has been ample political activism these days which requires more than reading a newsletter and electronically donating. Social media channels are alive with friending, liking, and meaty conversations. At the same time, though, there are countervailing pulls. For example, the COVID-19 pandemic left a legacy of isolating ourselves to avoid contamination. Severe political polarization leads to selectivity in companionship. On balance, then, social disconnectedness may be a common characteristic of contemporary culture.
     In a set of studies, University of Macau researchers find that this has an implication for retailing which is counterintuitive at first glance: We might think that a consumer who feels socially disconnected would welcome opportunities to shop alongside a crowd of others and to purchase experiences which include large group activities. But in reality, the socially disconnected want to stay away from crowds, on average. The explanation is that social disconnection sensitizes a consumer to potential threats and crowds decrease a consumer’s feeling of being in control. Disconnected consumers don’t consider a crowded environment as a way to reconnect with others, but rather as an unwelcome threat to their personal space.
     The researchers emphasize that people differ in their desire for belongingness, that some social density when shopping and consuming is often welcomed, and that the optimal level of crowding depends on the consumption situation. A level of crowding which would add to the excitement at a football game might be highly stressful when strolling through the streets of Venice. Recognize the aversion to crowding as a factor for you to test and calibrate as you design the optimal user experiences for your shoppers and customers.
     Also recognize how consumer perceptions of crowding can be influenced by your introduction of servicescape stimuli. Foliage generates calm in crowded areas. A peppermint fragrance during shopping or consumption relieves a sense of being uncomfortably crowded.

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Haul Retailing Through Usage Expectations 

Reap Loads from Solo 

Calibrate Store Congestion & Clutter 

Plant Advantages with Foliage 

Spice Up Store Sales

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Slope Down Discounts for Slope Use

It’s better to tell customers they’re paying less than to say they’re paying more. An Inland Norway University of Applied Sciences study found that a sample of alpine skiers and snowboarders living in the eastern part of Norway considered a pricing structure to be fairer if told that a discount is given for use of the ski area slopes during the week than if told a surcharge is applied for weekend use.
     But the discount magnitude made little difference in perceptions of fairness for discount amounts ranging between NOK 50 and NOK 150 (equivalent to about $5 to $15). The researchers conclude that managers can adapt discount levels based on their price optimization models without major concerns about how the discount level will affect the perceived fairness. In my email exchange about the study with Per Kristian Alnes, the lead researcher, he pointed out that this does not necessarily mean setting small discount amounts.
     The researchers then analyzed the effects of discounts for advance purchasing on perceptions of fairness. To what extent would a customer of ski slope use consider it fair or unfair if someone who purchased the pass 30 days in advance pays less than does someone who purchases their pass the same day as they use it? For this survey, the intervals presented to the participants ranged from 0 to 30 days and the discounts ranged from NOK 100 to NOK 300.
     The study participants’ responses showed a trend in which a greater discount for a greater number of days of advance purchase is considered fair. This was true both for survey respondents asked to imagine they’d gotten the early bird discount and those asked to imagine they’d not gotten it. However, the differences between same-day and 7-days-advance were noticeably larger than the differences between 14-days-advance and 30-days-advance. And for the 30-days-advance, a discount of NOK 300 was not rated as significantly fairer than a discount of NOK 100. Based on this finding, the researchers recommend that service providers set small discounts for early bird purchases.
     This set of studies did not directly explore how perceptions of unfairness impact shoppers’ purchase likelihood. The researchers do note prior studies showing how perceptions of a retailer’s unfairness can reduce customers’ subsequent buying intentions and can increase customers’ criticism to others about the retailer.
     Are these recommendations valid only for ski area proprietors serving alpine skiers and snowboarders living in the eastern part of Norway? Almost surely not. Discount amounts and pre-order intervals might differ, but the general conclusions are supported by other studies. The amount of a promotional discount has less consumer impact than does the discount’s availability.

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Fare Well with Fairness Intuition 

Theme Your Storewide Sales Promotions 

Cure Feelings of Retailer Betrayal 

Premiere Items with Gifts for Preorders

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