Oct 31, 2020
When I am shopping on Amazon, and a product has 3.5 stars, I don’t buy it. Now, 3.5 stars isn’t a bad rating; in fact, it’s above average. However, for me to place that item in my Amazon cart, it needs to have a rating of at least four stars or more. My behavior on Amazon is part of a broader concept called Negativity Bias, and it’s a massive influence on customer behavior.
This episode of The Intuitive Customer discusses the concept of Negativity Bias and how it affects people’s behavior in your Customer Experience. We also share some positive ways you can make negativity work in your favor.
Negativity Bias describes how we emphasize negative information over positive and find it more compelling for decision-making. It’s the reason we remember negative reviews more than positive ones. It’s also why we think about what could go wrong in specific situations rather than what could go right.
Here are a few more things you should know about Negativity Bias:
We all have a negativity bias. This bias is not reserved for a particular type of person or demographic. A compulsion to remember and focus on the negative is a psychological concept that we all share, and it affects all of us in different ways regarding how we behave.
Negativity Bias is related to Loss Aversion. Loss Aversion describes how we feel more pain from losing things than gaining things makes us feel good. Negativity Bias is a focus on the negative, which is a focus on the potential loss. It can lead to less rational decision-making. However, it can also motivate us to improve the situation too.
Negativity Bias leads to specific actions to protect oneself. As customers dealing with uncertainty, as we often are when trying a product or service for the first time, we tend to take a what-could-go-wrong perspective. To prevent the potential bad outcome, we take specific actions to avoid it. These actions could include scrolling through customer reviews (focusing on the bad ones), buying only from brand names we know and trust, or looking for referrals from friends and family.
While a little Negativity Bias can do good, too much only leads to bad. A focus on the negative can lead to good things, like process improvements or problem-solving exercises. However, too much stress there can lead to a skewed world view. It can lead to making poor decisions or missing the good things that are happening in an experience.
There are a few ways that you can use the Negativity Bias to get a good outcome. These include:
To discuss this further contact us at www.BeyondPhilosophy.com
About Beyond Philosophy:
Beyond Philosophy help organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). We then capitalize on this by improving your customer experience to meet these needs thereby retaining and acquiring new customers across the market.