Your product might fill a “need”, and if you’re lucky your product fills a “want”. And in the world of sales, there is a difference between the two. But that’s just touching the emotional-tip of consumer behavior. If you are an insurance agency, an insurance agent, or you’re in sales, it’s probably a safe assumption that you want to expand your knowledge on consumer behavior so you might increase revenue.
Turning the sizzle into more sales:
In the world of insurance, an agent is often confronted by resistance when trying to convince a reluctant client to insure against low-probability losses. This type of consumer behavior was the subject of an article published in the Journal of Risk and Insurance, reporting that there is a preference among clients for insuring against small losses, opposed to the larger less likely events that might occur. In the article “Preference for Insuring against Probably Small Losses: Insurance Implications”, the question researchers attempt to answer was, “What determines whether people will act to protect themselves from the severe consequences arising from a low probability event?” Continue Reading