Part 5: Too many choices make decisions more difficult.

Homeownership comprises one of the largest financial decisions people make.  Green homes seem like a natural fit for consumers because there is so much evidence that shows people care about the environment and want to make smart decisions.  The growth in Organic Foods is a perfect example of people using their dollars to make a choice that is not only healthy for themselves, but also for the environment. 

But why is it so much easier to get people to spend twice as much on an organic grocer than it is to entice them with healthy living?

The Paradox of Choice teaches us that in today’s world of greater consumer choice, increasing the number and types of products confuses consumers, making decisions more difficult and stressful.   With many more factors to consider, consumers wonder how you value those. 

The American Customer Satisfaction Index (ACSI) has been around for 14 years now.  It measures customer satisfaction in 40 industries and for 200 companies.  Many industries rate lower today than they did when the ACSI began in 1994.  This is counterintuitive since businesses seem to be spending more time and money providing more products that are better made and cost less than at any other time in our history, and yet customers do not appear to be any happier.  Why is this?

Buying groceries happens roughly every week and most people would consider themselves well versed in shopping for food.  Many of the potential clients for green products will purchase or lease at least one vehicle every five years, and though they may not like the process, they are at least familiar with it.  When it comes to purchasing a home people will buy, on average, three in their lifetime.  Therefore, their experience is limited.  Introducing new products and systems that they are unfamiliar with is confusing.  In addition, they have no basis with which to assign a value to it.  Combining this with the fact that it is likely the single largest purchase an individual or family can make, we must be very patient and deliberate, allowing people to learn from us – not just buy from us, empowering consumers and building their confidence about making the right choice by choosing green real estate.  

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