Posted in Marketing and Strategy Terms, Total Reads: 543
Definition: Buyer’s Remorse
The feeling of regret by a buyer after making a purchase is termed as buyer’s remorse. In simple words, when a buyer buys an expensive item and feels that he has made a wrong choice, then the feeling of guilt in his mind is called buyer’s remorse. There are various reasons both physical and psychological.
Factors of Buyer’s remorse:
i. Level of involvement: more the buyer is involved in the buying process, more the buyer is likely to have buyer’s remorse at a later stage.
ii. Amount of resources involves: If the buyer utilizes expensive resources like huge amount of money, long term savings, then the buyer tend to have more remorse.
iii. Product compatibility with the expectation: If the product does not meet expectations of the buyer and the buyer purchased it, then the buyer is likely to have remorse and it compounds when heavy resources and involvement is added.
iv. Loss of options after purchase: a buyer always has several options before purchasing the product like not buying, choosing a different model or bargaining for price but after purchase the buyer does not have many options but to continue with the product. This is also a factor for buyer’s remorse
v. Finding better alternative: If the buyer finds a better alternative of the product just purchased, then the buyer is more likely to suffer from buyer’s remorse.
Don’t confuse with shopaholic: Although these terms seems similar but should not be related entirely. Shopaholic is referred to the persons who shop out of habit and very frequently while buyer’s remorse can be felt even for a single purchase.
How to reduce buyer’s remorse: Marketers have this responsibility to reduce buyer’s remorse as it increases the user satisfaction and creates a base of loyal customers. Following steps are commonly used by the marketers to reduce buyer’s remorse:
i. Post-Purchase confirmation: When a buyer purchases an expensive product, then any gift or service or communication after purchasing process creates relief to the buyer and he is less likely to feel remorse.
ii. Use of coupons: Marketers use coupons on the purchase of products. It is beneficial for both sellers and buyers. Buyers feel that they got a good deal with some saving and returns to the store to redeem the coupon which helps seller to increase its revenue and repeat purchase.
iii. Money back schemes: Some marketers also offer money back schemes in which buyer can return the product after purchasing it and before a certain time period and can get its money back, subject to certain conditions. This also increases the satisfaction level among users and users get more choices after purchasing the process and hence less likely to feel remorse.