Buyer’s Remorse refers to the regret that a buyer feels after making a purchase. Buyer’s Remorse mostly arises when it is an expensive buy and the consumer regrets the amount that he has spent on that item. Products and services that cause Buyer’s Remorse 1. Contract purchases like a gym membership 2. Vacations and holidays 3. Electronic items 4. Vehicles like cars 5. Real-estate Factors affecting Buyer’s Remorse 1. Involvement of the buyer 2. Whether the purchase meets the buyer’s wants 3. Money, time and effort put into the transaction 4. Emotions like regret after the purchase Causes of Buyer’s Remorse 1. Unethical buy 2. Instant purchase without any thinking time 3. Purchase deemed unacceptable by others 4. The value of the purchase is questioned 5. Making the purchase with money that is not yours to spend for instance a loan amount How does Buyer’s Remorse Work? 1. Before buying the desire for the product is high 2. After buying the purchaser realizes the excessive amount he has spent or comes to know about alternative options Cognitive Dissonance and Buyer’s Remorse - Buyer’s Remorse is related to the psychological theory of Cognitive Dissonance. - It states that a person feels psychological discomfort when some of the elements of perception clash. - Buyer’s Remorse will occur whenever a person will invest excessive time and money in buying items. How to deal with Buyer’s Remorse? 1. Coupons for later purchases 2. Money-back guarantee by the retailer Example 1. Buying a vehicle 2. Buying an expensive villa Buyer’s Remorse – FTC’s Cooling-Off Rule 1. 3-day right to reverse a purchase How to overcome Buyer’s Remorse? 1. Make a shopping list and prioritize items 2. Stick to a budget 3. Look at choices 4. Give yourself a day to think things through 5. Use cash instead of a credit purchase This video is on Holistic Marketing and it has the following sub-topics. Time Stamps 0:00 Introduction 00:20 Definition of Buyer’s Remorse 00:34 What is Buyer’s Remorse? 01:08 Factors affecting Buyer's Remorse 01:22 Causes of Buyers Remorse 01:42 How does Buyer’s Remorse Work? 02:12 Cognitive Dissonance & Buyers Remorse 02:39 How to deal with Buyers Remorse? 03:20 Buyer’s Remorse Example 03:46 Buyer’s Remorse – FTC’s Cooling-Off Rule 04:08 How to Overcome Buyer’s Remorse?