Consumer confusion

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Consumer confusion is a state of mind that leads to consumers making imperfect purchasing decisions or lacking confidence in the correctness of their purchasing decisions. [1]

Contents

Confusion

Confusion occurs when a consumer fails to correctly understand or interpret products and services. [2] This, in turn, leads to them making imperfect purchasing decisions. This concept is important to marketeers because consumer confusion may result in reduced sales, reduced satisfaction with products and difficulty communicating effectively with the consumer. It is a widely studied and broad subject which is a part of consumer behaviour and decision making. [3]

Causes

Choice overload

Choice overload (sometimes called overchoice in the context of confusion) occurs when the set of purchasing options becomes overwhelmingly large for a consumer. A good example is wine in the UK where supermarkets may present over 1000 different products leaving the consumer with a difficult choice process. Whilst large assortments do have some positive aspects (principally novelty and stimulation [4] and optimal solutions [5] ) any assortment greater than around 12–14 products leads to confusion and specifically transferring the ownership of quality assurance to the consumer. [6] What this means in practice is reduced levels of satisfaction with purchases from large assortments as a consumer may be left with doubt that they have succeeded in finding the "best" product. Choice overload is growing with ever larger supermarkets and the internet being two of the main causes. [6]

Similarity

Similarity is where two or more products lack differentiating features which prevents the consumer easily distinguishing between them. Differentiating features could be any from the marketing mix or anything else associated with the product such as brand. Similarity of products has the negative effect on the consumer of increasing the cognitive effort required to make a decision. [7] and reducing the perception of accuracy of decision. Both of these reduce the satisfaction with a decision and thereby satisfaction with the purchase. [8]

Lack of information

A consumer may suffer from lack of information if the information doesn't exist, is unavailable to them at the required moment or is too complex for them to use in their decision making process.

Information overload

Too much information surrounding a product or service disturbs the consumer by forcing them to engage in a more complex and time-consuming purchasing process. This, and the fact that it is difficult to compare and value the information when it is superfluous, leaves the consumer unsatisfied, insecure regarding what choice to make, and more prone to delay the decision-making, and thereby the actual purchase. [9] [10]

Lack of consistency

When information provided on a product and/or service is not consistent with the consumer's previously held beliefs and convictions, ambiguity occurs in the understanding of the product. [9]

Law

Trademark infringement is measured by the multi-factor "likelihood of confusion" test. That is, a new mark will infringe on an existing trademark if the new mark is so similar to the original that consumers are likely to confuse the two marks, and mistakenly purchase from the wrong company. [11]

The likelihood of confusion test turns on several factors, [11] including:

Initial interest confusion occurs when a mark is used to attract a consumer, but upon inspection there is no confusion. This type of confusion is well-recognized for Internet searches, where a consumer may be looking for the site of one company, and a second site mimics keywords and metadata to draw hits from the "real" site.

Point of sale confusion occurs when a consumer believes their product to be from a company which it is not.

Post sale confusion occurs after a product is purchased, and third parties mistakenly think that the product is produced by a different, generally more prestigious, brand.

Related Research Articles

<span class="mw-page-title-main">Retail</span> Sale of goods and services from individuals or businesses to the end-user

Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a profit. Retailers are the final link in the supply chain from producers to consumers.

Marketing research is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services. The goal is to identify and assess how changing elements of the marketing mix impacts customer behavior.

A trademark is a word, phrase, or logo that identifies the source of goods or services. Trademark law protects a business' commercial identity or brand by discouraging other businesses from adopting a name or logo that is "confusingly similar" to an existing trademark. The goal is to allow consumers to easily identify the producers of goods and services and avoid confusion.

In economics and marketing, product differentiation is the process of distinguishing a product or service from others to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as from a firm's other products. The concept was proposed by Edward Chamberlin in his 1933 book, The Theory of Monopolistic Competition.

Managerial economics is a branch of economics involving the application of economic methods in the organizational decision-making process. Economics is the study of the production, distribution, and consumption of goods and services. Managerial economics involves the use of economic theories and principles to make decisions regarding the allocation of scarce resources. It guides managers in making decisions relating to the company's customers, competitors, suppliers, and internal operations.

<span class="mw-page-title-main">Choice</span> Deciding between multiple options

A choice is the range of different things from which a being can choose. The arrival at a choice may incorporate motivators and models. For example, a traveler might choose a route for a journey based on the preference of arriving at a given destination at a specified time. The preferred route can then account for information such as the length of each of the possible routes, the amount of fuel in the vehicle, traffic conditions, etc.

<span class="mw-page-title-main">Consumer behaviour</span> Study of individuals, groups, or organizations and all the activities associated with consuming

Consumer behavior is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services. Consumer behaviour consists of how the consumer's emotions, attitudes, and preferences affect buying behaviour. Consumer behaviour emerged in the 1940–1950s as a distinct sub-discipline of marketing, but has become an interdisciplinary social science that blends elements from psychology, sociology, social anthropology, anthropology, ethnography, ethnology, marketing, and economics.

The buying decision process is the decision-making process used by consumers regarding the market transactions before, during, and after the purchase of a good or service. It can be seen as a particular form of a cost–benefit analysis in the presence of multiple alternatives.

<span class="mw-page-title-main">Brand loyalty</span> Marketing term for a consumers emotional attachment to a given brand

In marketing, brand loyalty describes a consumer's positive feelings towards a brand, and their dedication to purchasing the brand's products and/or services repeatedly, regardless of deficiencies, a competitor's actions, or changes in the environment. It can also be demonstrated with other behaviors such as positive word-of-mouth advocacy. Corporate brand loyalty is where an individual buys products from the same manufacturer repeatedly and without wavering, rather than from other suppliers. Loyalty implies dedication and should not be confused with habit, its less-than-emotional engagement and commitment. Businesses whose financial and ethical values rest in large part on their brand loyalty are said to use the loyalty business model.

In the field of consumer behavior, an impulse purchase or impulse buying is an unplanned decision by a consumer to buy a product or service, made just before a purchase. One who tends to make such purchases is referred to as an impulse purchaser, impulse buyer, or compulsive buyer. Research findings suggest that emotions, feelings, and attitudes play a decisive role in purchasing, triggered by seeing the product or upon exposure to a well crafted promotional message.

Buyer's remorse is the sense of regret after having made a purchase. It is frequently associated with the purchase of an expensive item such as a vehicle or real estate.

<span class="mw-page-title-main">Canadian trademark law</span>

Canadian trademark law provides protection to marks by statute under the Trademarks Act and also at common law. Trademark law provides protection for distinctive marks, certification marks, distinguishing guises, and proposed marks against those who appropriate the goodwill of the mark or create confusion between different vendors' goods or services. A mark can be protected either as a registered trademark under the Act or can alternately be protected by a common law action in passing off.

A touchpoint can be defined as any way consumers can interact with a business organization, whether it be person-to-person, through a website, an app or any form of communication. When consumers come in contact with these touchpoints it gives them the opportunity to compare their prior perceptions of the business and form an opinion.

<i>The Paradox of Choice</i> 2004 book by Barry Schwartz

The Paradox of Choice – Why More Is Less is a book written by American psychologist Barry Schwartz and first published in 2004 by Harper Perennial. In the book, Schwartz argues that eliminating consumer choices can greatly reduce anxiety for shoppers. The book analyses the behavior of different types of people. This book argues that the dramatic explosion in choice—from the mundane to the profound challenges of balancing career, family, and individual needs—has paradoxically become a problem instead of a solution and how our obsession with choice encourages us to seek that which makes us feel worse.

<span class="mw-page-title-main">Brand</span> Identification for a good or service

A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and store value as brand equity for the object identified, to the benefit of the brand's customers, its owners and shareholders. Brand names are sometimes distinguished from generic or store brands.

Overchoice or choice overload is the paradoxical phenomenon that choosing between a large variety of options can be detrimental to decision making processes. The term was first introduced by Alvin Toffler in his 1970 book, Future Shock.

Choice architecture is the design of different ways in which choices can be presented to decision makers, and the impact of that presentation on decision-making. For example, each of the following:

Sustainable consumer behavior is the sub-discipline of consumer behavior that studies why and how consumers do or do not incorporate sustainability priorities into their consumption behavior. It studies the products that consumers select, how those products are used, and how they are disposed of in pursuit of consumers' sustainability goals.

<i>Network Automation, Inc. v. Advanced Systems Concepts, Inc.</i> Court case decided on March 8, 2011

Network Automation, Inc. v. Advanced Systems Concepts, Inc., 638 F.3d 1137 was a court case decided on March 8, 2011, where the United States Court of Appeals for the Ninth Circuit ruled that the use of a competitor's trademark as an Internet search advertising keyword did not constitute trademark infringement. In the case, Network Automation advertised their own competing product in search queries that contained Advanced Systems Concepts' "ActiveBatch" trademark. In determining whether trademark infringement occurred, the court evaluated factors relevant to the likelihood of customer confusion outlined in AMF Inc. v. Sleekcraft Boats and concluded that confusion was unlikely.

A context effect is an aspect of cognitive psychology that describes the influence of environmental factors on one's perception of a stimulus. The impact of context effects is considered to be part of top-down design. The concept is supported by the theoretical approach to perception known as constructive perception. Context effects can impact our daily lives in many ways such as word recognition, learning abilities, memory, and object recognition. It can have an extensive effect on marketing and consumer decisions. For example, research has shown that the comfort level of the floor that shoppers are standing on while reviewing products can affect their assessments of product's quality, leading to higher assessments if the floor is comfortable and lower ratings if it is uncomfortable. Because of effects such as this, context effects are currently studied predominantly in marketing.

References

  1. ↑ Walsh, K (1999). "Marketing and Public Sector Management". European Journal of Marketing. 28 (3): 63–71. doi:10.1108/03090569410057308.
  2. ↑ Turnbull, P W (2000). "Customer Confusion: The Mobile Phone Market". Journal of Marketing Management. 16 (1–3): 143–163. doi:10.1362/026725700785100523. S2CID   167714306.
  3. ↑ Soloman, M R Consumer Behaviour: Buying, Having and Being. Prentice Hall p.7
  4. ↑ Darden; Griffin (1994).{{cite journal}}: Cite journal requires |journal= (help); Missing or empty |title= (help)
  5. ↑ Baumol; Ide (1956).{{cite journal}}: Cite journal requires |journal= (help); Missing or empty |title= (help)
  6. 1 2 Broniarczyk, S M (2008). "Product Assortment and Consumer Psychology".{{cite journal}}: Cite journal requires |journal= (help)
  7. ↑ Loken, M (1986).{{cite journal}}: Cite journal requires |journal= (help); Missing or empty |title= (help)
  8. ↑ Lippold, Axel; Lindridge, Andrew; Deseniss, Alexander; Mitchell, Vincent Wayne; Walsh, Gianfranco (2016). "Investigating consumer confusion proneness cross-culturally: empirical evidence from the USA, Germany, and Thailand". International Journal of Markets and Business Systems. 2 (3): 226. doi:10.1504/ijmabs.2016.10002467. ISSN   2056-4112.
  9. 1 2 Walsh; et al. (2007). "Consumer confusion proneness:Scale development, validation, and application". Journal of Marketing Management. 23 (7–8): 697–721. doi:10.1362/026725707X230009. S2CID   59271745.
  10. ↑ Ponder, Nicole; Worthy, Sheri L.; Lueg, Jason E. (2017), "Are Consumers Vulnerable to Consumer Financial Services? An Exploration of Psychological Antecedents of Attitudes and Behaviors in the Consumer Financial Services Industry: An Abstract", Creating Marketing Magic and Innovative Future Marketing Trends, Cham: Springer International Publishing, pp. 1167–1168, ISBN   978-3-319-45595-2 , retrieved 4 May 2023
  11. 1 2 Polaroid v. Polarad, 287F.2d492 (2nd Cir.1961).
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