Diffusion of Responsibility

Why don’t more people purchase online?

A common question asked among online business owners. In today’s economy it is not uncommon to find businesses based solely online. It has become part of our culture, and readily acceptable by society. These same business websites receive more hits than visits, and more visits than purchases.

What prevents people from buying? You could argue the fear of identity theft, but would the argument be sound enough? The answer could be a phenomenon Bibb Latane and John Darley called diffusion of responsibility.

While we know purchase is necessary for the survival of the owner and his/her business, we also know there are millions of other people. These millions will purchase, or have purchased in our stead. So, we do not feel guilty about not purchasing or moving on to another site where we ultimately do purchase.

Sites that are questionably designed, lacking credibility, etc. still sell their products. Artistically designed sites, with all the bells and whistles, also generate income. They do so because people are specifically looking for that item, at that price, at that time. Generally, it is an impulse purchase that will be associated with a pleasure. Whether it is making someone happy or enjoyment for oneself. In the purchasers mind, at the time of purchase, it is a need and they will justify it.

So why don’t more sites make money? Often it is the design, the layout, and the colors, even the personality of the site. But more than that, it is the fact that people believe someone else is doing the purchasing for them. If each Internet user believed they were the only one purchasing/online the more likely it becomes that they will purchase.

The customer is no longer responsible for the success or failure of a business. In a community the responsibility to purchase at local stores is stronger. It is, after all, the company you may work for or may need to work for in the future. The success or failure of your community is important and thus, you feel responsible for it.

Online there are Millions of “stores” and even more shoppers. They are not all within your community. So the responsibility of keeping them alive is shared with millions or billions of other shoppers. The more shoppers, the smaller the chance for action, and the more important it becomes to be the BEST.

Creating your own website can save you money, in the beginning, but then you look like millions of other websites created by amateurs. It takes more to succeed online then just a website. A second rate website makes it even harder. Potential customers already imagine that millions of others are purchasing from you, don’t add a bad web design to the equation.

Doing it yourself is great for building a deck on the back of your house, but it is an exercise in futility when it comes to a business website. Remember people already think everyone else is buying from you, give them a good reason to stick around and become one of the buyers.