- Worth: Buyers tend to attach ‘perceived’ value to the alternatives available, rather than the subjective ones, fundamentally associated with the products or services.
- Frame of reference: Most buyers invariably resort to benchmarking a new offering against the existing alternatives (no wonder the buying decision becomes such a critical one when a new product is genuinely an ‘original’ concept with little or no comparable offerings. Uniqueness may not always be a ‘virtue’, after all!).
- Valuation: More often than not these referential evaluations boil down to a discrete ‘gain-loss’ comparison.
- The clincher: It has been found more often than not that the perceived notion of ‘potential losses’ leave far greater impact on consumers’ buying decisions than ‘probable gains’ out of adopting a new alternative.
Well, I am still trying to solve my own case of identifying the psychology behind burning some well-preserved cash in acquiring a fresh piece of the glitzy gadget. Till the time I manage to figure it out, I have decided to refrain from investing in another new smart device or even another ‘trending’ piece of OS or pricey app, at the least.