Fear is a negative emotional response to the presence of danger or threat. Speculative fear is a negative emotional response to the anticipation of danger or threat, which may or may not occur. Humans are hardwired to look for things to fear, forming a necessary part of our survival instinct from birth.
The human response to danger or threat is flight, fight, or in extreme cases, immobility. However, people respond in several ways when trouble or threat is perceived only as a looming risk. Avoidance, hunkering down, freezing in place, and acting impulsively are responses to prolonged anxiousness caused by pending fearful situations.
While fear is ingrained in our nervous system, it can also be taught. Technology has dramatically changed the way people get information. Social media has become the primary source of news online, with more than 64 percent of internet users receiving breaking news from social media instead of traditional media.
These statistics may be a sign of modern times. Still, the challenge with most people getting their news on social media sites is concerning when coupled with the fact most people do not read past the headline, and the vast majority of headlines are negative.
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Negative media coverage reports show that negative words such as “bad,” “worst,” and “never” are 30 percent more effective at catching people’s attention than positive words. Research studies also revealed that negative words improved the average click-through rate. Headlines with negative bias showed a 63 percent higher result when compared to positive ones. Most (59 percent) of all news article links shared on social networks aren’t clicked on, implying that most article shares are not read in their entirety.
So, you’d be right if you think we live in an increasingly hostile world, and most news is bad news. We are increasingly exposed to negativity and fearful news, affecting our collective anxieties and behaviours.
Panic buying
When the Spanish flu arrived in Britain immediately after the First World War, people panicked and rushed to purchase quinine and other medications, leading to national shortages.
Since then, panic buying and hoarding have been observed during many crises. Panic buying is much more common in developed or industrialised countries where people expect they will always be able to access food and other essential items easily.Â
During the COVID-19 pandemic, psychologists observed that panic buying was associated with individuals with higher incomes, the presence of children in households, depression and death anxiety, and mistrust of others or paranoia.
Panic buying results from the perceived threat of the event and the perceived scarcity, fear of the unknown, and as a coping mechanism.
Retail therapy
Retail therapy is shopping primarily to improve the buyer’s mood or disposition. It is often a short-lived habit in people with depression or stress.
Research has shown that shopping can help reinforce a sense of personal control and ease feelings of sadness.
In 2014 the Journal of Consumer Psychology found that retail therapy makes people happier immediately and can also fight lingering sadness. According to the study, the choices and outcomes inherent in the act of shopping can restore a feeling of personal control and autonomy.
Another study by the University of Michigan showed that purchasing things you enjoy can be up to 40 times more effective at giving you a sense of control than not shopping. In this study, those who actually purchased items were also three times less sad compared to those who only browsed.
How brands can respond to environments of high fear and low trust
Listen to your customers.
During times of financial stress, such as high inflation or recession, seek as much information as possible about your audience.
Take a deep dive with multiple data streams to build a clear picture of behaviour and sentiment. It will likely be vastly different than it was a few months ago and will continue to change. Don’t leave questions out of your research about fear and perceived risk with your customers.
Words matter.
The world is changing faster than ever, with your buyers’ attention and priorities shifting quickly in response to stressful events.
For brand marketers and product managers, understand that language that sounded good last month can mean something entirely different today.
Take action.
With insights from your research, determine what your brand should do to address your customers’ wants, needs, and fears. Your target audience has expectations from brands during uncertain times. Discover what they are, and see if you can deliver while remaining authentic to your brand promise.
Communicate authentically.
Be bold and authentic when storytelling and communicate practical information to help reassure and educate your customers. Give your customers an added feeling of security and stability by providing in-depth information. Choose to be a voice of comfort, instilling confidence in your consumers and alleviating fears with the right message.
Fear and anxiety aren’t going away anytime soon. Financial fear and stress can adversely affect buying behaviours, so it is essential to acknowledge these emotions and develop strategies to address them head-on. What was true of your target audience a few short months ago may not be true today. It all starts with an in-depth understanding of the perceived risks and barriers to purchase when it comes to your product or service. Great research is the first step for brands to develop compelling and compassionate messaging that helps customers feel empowered, confident, and comfortable with their purchase decisions during times of financial stress.
Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.
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