SATISFICING: WHY CUSTOMERS CHOOSE THE LEAST RISKY INSTEAD OF THE BEST

Summary from the TLDR Marketing newsletter

In the 1970s, IBM maintained market dominance by leveraging its status as the "safe choice" rather than competing on technical specifications. Its sales team emphasized IBM's large market share, robust support, and low risk for buyers, which led to the popular phrase: “Nobody ever got fired buying an IBM.” Risk aversion drives many B2B buyers, as they prioritize minimizing potential failures over seeking optimal solutions. Challenger brands can compete by exploiting the leader's weaknesses, targeting specific market segments, or reducing perceived buyer risks with guarantees. These strategies can help challengers counteract the advantage of established market leaders.