CDS director Eric Johnson talks with Deal Crunch about the research that the center does on consumer decisions. Topics include studying the downside of impulse buying and the benefits of patience, improving conversions by giving the right amount of information, and a cognitive approach to influencing consumer decision-making.
"We know that people are put off by complex interactions. With websites, an additional click can cause a significant drop-off in the number of customers signing up and making purchases," he said. "Complex promotions have the same effect. There is less uptake, participation, and follow through. In the past, many more people would buy items thinking they would use a complicated rebate, but they would not actually redeem it. If you want to make a promotion effective, keep it simple."