The Paradox of Choice
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The document discusses the choice paradox, illustrating that too many options can lead to indecision and lower sales, as evidenced by a study showing higher satisfaction with fewer jam choices. It emphasizes the complexity of decision-making, suggesting that offering too many choices can burden consumers and reflect a lack of brand confidence. Key takeaways for decision-makers include the importance of simplifying choices to enhance consumer satisfaction and improve conversion rates.
The Paradox of Choice
- 1. Choice Paradox Too much choice will lead to indecision and lower sales In a study of jam, consumers were more likely to buy when offered 6 jams (40%) instead of 24 jams (3%). Consumers also reported greater buying satisfaction.
- 2. When people have no choice, life is almost unbearable. As the number of available choices increases, as it has in our consumer culture, the autonomy and liberation this variety brings are powerful and positive. But as the number of choices keeps growing, negative aspects of having a multitude of options begin to appear. As the number of choices grows further, the negatives escalate until we become overloaded. At this point, choice no longer liberates, but debilitates. It might even be said to tyrannize. “ Barry Schwartz – “The Paradox of Choice”
- 3. But stepping aside from the jam experiment for a moment, it’s important to recognize the difference between choice and complexity. Consider choosing between jams on the one hand, and making a decision about important long-term investment options on the other. There is a lot more complexity involved in the latter, and the risk of putting off or not carrying out such a decision is significantly higher to a person’s wellbeing than walking out of the shop without a chosen jar of jam.
- 4. Think hard about the minimum amount of choice you need, in order to clearly differentiate your brand from the competition. Look back 6 years and compare Apple’s iPhone product range next to Nokia’s, for instance. Choice can be a confusing burden as much as a convenience. #1 Takeaways for decision- makers
- 5. Every decision you fail to take to focus and simplify your range, is one more that your customers will be burdened with, every single time. #2 Takeaways for decision- makers
- 6. Too much choice can be perceived as a lack of confidence in your own brand. Being asked 12 different questions about how you want your burrito will be cognitively-tiring and leave many wondering why the company can’t be more bold and self-assured with respect to its product. #3 Takeaways for decision- makers
- 7. Streamline choice architecture to encourage some sort of ‘good’ decision (whatever you, as a decision-maker, determine ‘good’ to be) where one would otherwise not take place at all. For instance, reducing choice and consumer apathy within a user flow at key intervals where drop-off has been found to be high will increase conversion. #4 Takeaways for decision- makers
- 8. You’ll have to work harder & spend more to market the differences between the products in your range, the more choice you offer. #5 Takeaways for decision- makers
- 9. More brain gems for decision-makers can be found at http://coglode.com