Materials for reading

Consumer rights

Refer to a consumer’s right to safety, to be informed, to choose and to provide

manufacturers with information concerning their products when they make a purchase.

Manufacturers who violate consumer rights are subject to lawsuits by their customers.

Consumer protection is important for protecting consumers and instilling

confidence in different institutions within the country. The laws are able to

guarantee safety and quality of the products and services consumers use. A country can

only experience a growth in economic activities when consumers have trust in the

producers, so the producers must work to provide the assurance required to win the trust

of consumers.

Inexperienced consumers are more vulnerable to being sold poor quality products and to

illegitimate sales. Consumer protection laws take into account the challenges faced by

such consumers to ensure that they are protected from fraudulent sellers and unsafe

products. There are also several agencies and services that help to ensure consumer

protection. For example, online companies use services, such as Verisign, BBBOnline and

TrustE, to earn the trust of their customers.

In the service industry, the consumers interact with the producers regularly when hiring

their services. In this type of situation, there must be assurance that the person a

consumer is dealing with is reputable and legitimate. This creates an opportunity for the

existence of middlemen to serve as a link of trust between the consumer and the

producer. Typically, consumer protection policies are important to protect consumers

from cons, misleading advertisements, poor services and unsafe goods.

A Guide to the Consumer Decision-Making Process

by Melinda Curle | Updated Aug. 5, 2022 - First published on May 18, 2022

The consumer decision-making process is at the core of an effective marketing plan.

Use it to guide prospective customers through the customer journey to a sale.
How do your customers decide to buy from you? If you don’t know, you may be
setting yourself up for failure. Understanding the customer buying process is at the
core of your success. Understand that process, and you can better steer prospects to
the sale.
A customer goes through these five stages when deciding to make a purchase:
1. Problem recognition
2. Information search
3. Evaluation
4. Purchase decision
5. Post-purchase buying behaviors

Every customer follows a customer journey map that guides them through each
step. Your conversion funnel should have content that corresponds to and supports
the customer at each step.

1. Problem recognition

The buying process starts when the consumer recognizes they have a problem to
solve. They must recognize their problem needs a solution. Whether the problem is
losing weight or moving to a new location, the first step is always recognizing there's
a problem to be solved.
Once they recognize their problem, consumers often use Google search to find
solutions. Informational posts that help them identify how to address their problems
will help build trust with your target market at this preliminary step in the customer
journey.
Combining quality informational blog posts with your e-commerce platform is a
great way to attract customers in the problem recognition stage. Their main interest
is information gathering, but it's never too early to showcase your product or service.

2. Information search

Consumers want to know they're making an informed purchase decision and spending
their money wisely. They don’t stop researching when they find one solution online.
Consumers look for the following during their research:

• Social proof: Do other people like it? What are their experiences?
 • Features and benefits: Will the features meet their needs? Does the product
provide benefits that will enhance their life?
• Price: Is the product reasonably priced?

Social proof Consumers look for social proof online and from their friends when
they're unsure about a buying decision. They're looking for other people to confirm
their purchase is wise and the product is sound.
Reviews are an essential part of the information searching process. According to
The Opinion Corporation Research study, "A full 61% of customers read online
reviews before making a purchase decision, and they are now essential for e -
commerce sites."

Testimonials and reviews provide the consumer with a real example of another
buyer’s experience. They also build trust between the consumer and the br and.

Features and benefits Consumers read up on the features and benefits of

the product or service. These are often found in its description, on a sales
page, or in a brochure.
For more complex features and benefits, it may be wise to create how -to
content for certain products. This can be done with video demonstrations, e -
books, and informational posts.

Price Consumers always want the best price they can get, but it's not always
beneficial to be the lowest-priced option on the market. Some view the lowest
price suspiciously, assuming low-quality materials and workmanship. This may
turn off some buyers.
During the information-gathering phase, buyers will check the market to see if
your price is fair. They'll want to confirm your product is competitiv ely priced.

3. Evaluation

As consumers conduct research, they discover many brands offering similar solutions.
This leads them to the evaluation stage of the customer journey. They will evaluate
alternatives to determine which best solves their problem. This involves comparing
and contrasting features and benefits.
During this stage, consumers can be influenced by the interaction they have with the
brand. For example, if customer engagement is high, a customer may be more
inclined to try a product. If no strong attachment exists between the buyer and the
brand, price may factor strongly into the decision.
A customer relationship manager (CRM) tool can help your brand stand out
throughout the customer journey. HubSpot CRM allows companies to engage with
their potential customers through targeted marketing campaigns. You can create
email sequences to nurture your leads at every point.
4. Purchase decision

Each purchase decision is different, requiring a different time investment. Some

consumers purchase a product to try it out, others are seeking long-term investments,
and loyal customers may purchase it because they love the product.
If your product has strong social proof, positive reviews, a good price point and looks
like it will solve a consumer’s problem, they may well buy. For example, a housewife
may be interested in the trend of cooking meals faster. She discovers a pressure
cooker on sale for 20% off. After confirming the testimonials are positive and
checking with friends and family, she orders the pressure cooker online.
Very expensive purchases, such as a house, require a long -term commitment and
more extensive evaluation. For example, when a consumer finds a three-bedroom
house selling below market value, they may be interested.
After confirming with their realtor that the foundation is solid and the neighborhood
schools are good, they may evaluate similar homes in the neighborhood. The buyer
will want to evaluate the mortgage rates and real estate market. This will lengthen
the time to make a purchase decision.

5. Post-purchase buying behavior

Why should you care about a customer after the purchase is done? Providing great
customer service can lead to increased customer loyalty and referrals. In
fact, 65% of a company's business comes from its existing customers. Not only
are loyal customers five times more likely to purchase again, but they will also
refer their friends and do your marketing for you.
Once the transaction has been made, the customer sales cycle isn’t over. The
consumer is still evaluating their purchase. They want to know if the product will
meet their expectations long term. This post-purchase evaluation will be different for
every product.
The post-purchase evaluation of a new yogurt brand may take only 24 hours. The
customer will consume it and decide if he or she enjoyed it. They also may want to
wait to see if they experience any digestive trouble before writing a positive review
for the brand.
The post-purchase evaluation of a washing machine may last a few years. Consumers
will first evaluate how well the machine washes clothes. They will then want to figure
out how energy- and water-efficient the machine is. They'll compare this information
with the marketing that sold them on the machine.
Post-purchase evaluation is a great time to deepen your relationship with your
customers. Follow up with them and discover what they liked or hated about the
product. You get valuable feedback on how you can improve your product, and it's
an opportunity to market other products to them.
Guiding the customer to a sale

Understanding the five stages of the consumer decision-making process will help you
attract and guide your leads through the customer journey. By creating marketing
that makes you easy to find, every step on their path gives them confidence that
purchasing your product will solve their problem.
This will improve your customer acquisition rate, increase customer retention,
and maximize conversions. When done right, your customers will become loyal fans
and rave about you to their friends and family.

HOW FIRMS AND PRODUCTS GETS CREDIBILITY

How Testimonials Can Boost Your Credibility

by DP Taylor | Updated Aug. 5, 2022 - First published on May 18, 2022

Customer testimonials increase trust in your brand and help drive sales. This guide
will help you understand the types of testimonials and provide examples on how to
get it right.

One of the hardest things for a new business is to build trust. When you’re brand
new, customers don’t know you, and therefore they are reluctant to buy from you.
Getting over that hump is not easy, and many businesses never figure it out.
The best way to build the trust early on -- and it’s something you should continue to
do even after you’ve hit it big -- is to find a few customers who will rave about you
and feature their positive comments on your website, which is known as a testimonial.
This signals to people who visit your site that you’re not just some random business
on the internet, but a trustworthy organization with a track record.
When you’ve satisfied your customer’s needs, crow about it a little. Testimonials
tell the story of how you’ve done it for a customer and are therefore worthy of others
putting their trust in you. Here’s what you need to know about testimonials, and some
examples of how to implement them on your website.
Overview: What is a testimonial?
A testimonial is positive feedback from buyers of your product or service. You feature
it on promotional materials to encourage other potential buyers to open their wallets.
Client testimonials affirm to potential customers who aren’t quite sure whether to
trust your company that, “other people have purchased from us and ended
up satisfied, so you should, too.”
Testimonials may speak to just one component of the customer lifecycle, or to all
stages, and they can be given voluntarily to the company or the company may solicit
customers for them. Sometimes, companies use paid endorsements.
Types of testimonials
Testimonials take many forms and are valuable for businesses selling both online and
offline. By emphasizing the customer experience, they help drive sales volume and
boost overall profitability, so consider them if you struggle to close potential
customers who visit your website or store. Businesses commonly use the following
four types of testimonials.

1. Social media

Social media has become a powerful branding tool due to its power to
drive communication with customers. It identifies real people and allows
companies to embed posts from happy customers directly on their site.
You can create hashtags to start a conversation about your products or services, and
users can share images using your products. Instagram, Twitter, and Facebook have
been the top platforms for these types of testimonials, but LinkedIn, Pinterest, and
other social media platforms shouldn’t be ignored.

2. Customer reviews

Customer reviews have become big in recent years. Customers want to know the real
opinions of other buyers, and some sites build their entire business models around
collecting consumer reviews for product directories.
These reviews create social proof and allow customers to identify with those who
have similar needs and expectations. Good reviews increase trust in a business, which
in turn increases the likelihood of a customer purchase.

3. Influencer testimonials

Brands increasingly reach out to “influencers” to help sell a product. Influencers are
social media celebrities with large followings who sometimes endorse a product or
service. These influencer deals can significantly increase brand aw areness and
consequently provide a boost to sales. Companies may reach out to influencers
directly, and sometimes develop long-term relationships with them.

4. Website testimonials

Then there’s the tried-and-true method of customer testimonials: featuring positive

feedback on your website. That way, when a customer visits your website, perhaps
through an ad, they see others have had positive experiences and may be more
willing to trust your company. A good way to do this: reach out to happy customers
and ask if they’d write a quick review you can feature on your website.
Be careful when it comes to testimonials, however. Testimonials or testimonial
advertising that isn’t completely true or made up entirely may be considered false or
deceptive advertising and therefore against the law.
And if you’re considering offering something of value in exchange for a testimonial,
consult with a lawyer first. It’s possible to fall afoul of the law here – typically, you
must clearly state to visitors what item of value you’ve offered for the testimonial.
5 testimonial page examples to replicate on your website

Wondering what a good testimonial page looks like? Check out these five solid
examples that hopefully will inspire your own site design.

1. Kissmetrics

Kissmetrics -- a product and marketing analytics company -- features a large

"Customers Love Kissmetrics" section, complete with real names and even profile
pictures of those who left customer quotes to give the clear impression that these
are real people with real business needs who were happy with the product.

Kissmetrics uses quotes and profile pictures to personalize their testimonials. Image
source: Author

2. Codecademy

Codecademy -- which helps people learn how to write software code -- went a
different route than the standard practice of providing a quote from a customer.
Instead, they decided to tell their stories with video testimonials.
The featured video on their Codecademy Stories page tells how three students
"changed their lives" with Codecademy. The video not only puts a human face to the
testimonial but also a voice and a personal story that goes beyond a "we were
satisfied with the product" statement.

Codecademy uses video testimonials to convince visitors. Image source: Author

3. Blue Apron

Blue Apron -- the meal delivery service -- goes hard on brand engagement through
social media. Their Instagram account, which has more than 300,000 followers, often
features people showcasing the Blue Apron box contents and how to cook it.
They are often tagged by users or paid influencers. For example, user
@inspirationformoms -- which has more than 40,000 followers -- posted a paid
partnership post in which a mother and her son cooked up some cheesy quesadillas
from a recent Blue Apron shipment.
Blue Apron’s Instagram account sometimes features paid partnerships. Image source:
Author

4. Harry’s

A little media coverage can go a long way, so if anyone has written positively about
your product, trumpet it to your site's visitors. That's what Harry's -- a razor and
men's hygiene products subscription company -- does on their site.
They feature reviews from publications such as Esquire, GQ, and Men's Health.
Chances are, you haven't landed that kind of publicity yet, but if a niche blog has
mentioned you in a positive light, that is good to feature on your website.
Harry’s features comments in media about its products. Image source: Author

5. Glossier

It's one thing for customers to tell your visitors how your products helped them --
but showing is even better. That's what Glossier -- a makeup company -- has done,
integrating Instagram into its sites and showing how real customers have used their
products. It's an effective strategy that gives a human feel to your products and also
shows them exactly how they would benefit from using your products.

Glossier features customers using its product. Image source: Author

Make testimonials part of a brand new customer strategy
Testimonials are one part of an overarching branding and marketing strategy. If you
want to
change your outreach to customers and emphasize your customer service,
testimonials are a great place to start, but you must make other adjustments as well.
For one thing, explore new customer service software to build around. This
software offers features that will help with customer retention as well as
new customer acquisition. Overall, you'll be more organized as a business.
Draw up a strategy with your team and figure out the best way to feature testimonials
on your website. Should you use social media? Is video a good option? What other
creative methods are likely to resonate with visitors? Should you draw up a customer
satisfaction survey to find out how to get more testimonials? Should you hire a
customer success manager to drive this strategy? Answer those questions and start
experimenting.