5 Jams vs. 500 Jams: Is More Choice Always Better?
Many marketers have assumed that the more choices they offer, the more likely the customer will find the product they are satisfied with and be happier. Therefore, many companies will sell a variety of their product, in every variation one can think of — always presenting many options.
The scientists went to an upscale grocery store and set up a table with an assortment of 24 jams. Those who sampled one of the jams received a $1 coupon off any of the jams (for tracking purposes). A week later, the same table was set up but this time there were only 5 different varieties of jam on display.
The study found that the larger display of jams attracted more interest, but when it came to actually purchasing the jams, the smaller sample won. Individuals who saw the larger setup were 1/10 as likely to buy a jam.
This study sent shockwaves through the marketing and psychology world, as the previous understanding of human nature was turned upside-down — while choice seems appealing at first sight, in fact, individuals do not prefer more variety since it is confusing and stressful. Choice paralyzes the consumer!
It is important for companies to know that choice overload generates the wrong results.
Interestingly, it is not only the number of sales that are impacted by too much choice, but customer satisfaction also goes down with more choice. Thus, too many choices can actually demotivate a consumer.
It is important for brands to determine the right amount of choice so as not to bore the customer. Additionally, no customer wants to feel like they have no choice at all — they have preferences after all: a favorite color, an ideal size, and even religious and cultural concerns. Every person is an individual and thus doesn’t want to be forced to buy the same exact thing as the rest of the world just because they don't have other choices — in this way creating more variety in a company is a balancing act.
It can often help grow the business to reach new customers and different communities but it can also reduce sales and paralyze consumption if taken too far.
So, when it comes to choice, for the customer, less is more.
