The Choice Paradox
“It’s good to have options…” But are options really a good thing?
When I was younger, the topic of school lunches went one of two ways. Either, my mother would say “what do you want in your lunchbox?” to which I would go back and forth between all the possibilities, rarely ever settling on something I liked. Or, she would say “you can have a turkey sandwich, or mac & cheese, which do you prefer?” to which I would choose the one that sounded best in the moment. A small anecdote from my childhood has become a topic relevant today in the business world. Now It’s the year 2022, and as consumers, we are flooded with choice. From brands expanding their product range, to emerging competitors in every industry, just deciding on what flavor syrup to choose at Starbucks is a daily task.
We Think We Want Choices
Generally speaking, choice is a good thing. More choice equals freedom, right? One would assume the relationship between choice and well- being to be clear: the more choice one has, the better they are. Choice provides individuals with feeling autonomous and in control. However, as more choices have become available to us, we start to feel overwhelmed which can impact our decision-making process.
It All Began with Jam
In 2000, psychologist Sheena Iyengar and Mark Lepper released a study on the impact choice has on behavior. On the first day of the study, consumers at a high-end grocery store were exposed to a display of 24 types of gourmet jam, and those who sampled received a $1 coupon on the product. The next day, a smaller table with only 6 types of the jam was displayed. While the large table attracted more interest in the moment, people who saw the large display were only one- tenth as likely to purchase the item compared to those who saw the small display. While still providing some choice, exposing consumers to a smaller range of product options resulted in higher sales conversion.
The Choice Paradox
The Jam experiment led to interesting conclusions. Evidence shows the potential for too much choice leaves us unsatisfied with the decision we make. In Barry Schwartz’s Ted Talk on choice, he emphasizes that too much choice leads to two main consequences, one being buyer’s remorse. When consumers are given a wide variety of options to choose from, it forces their standards to be raised, and therefore left with the thought of how much better one of the other options may have been. Consumers also then spend more time making a decision that involves many options, leading to anxiety, regret, and self- blame.
If Not Endless Options, Then What?
At this point, it’s clear that offering many options to consumers does not equal higher sales and satisfaction, rather it leads to the opposite effect. Choice can no longer be used to justify a strategy, or remain competitive. Companies now need to bear in mind that consumers don’t want endless amounts of options, rather they want personalization. Today’s customer expects a personalized shopping experience from start to finish. Rather than competing with one another by offering mass amounts of product variety, brands and companies can differentiate themselves through creating unique experiences catered to the customer’s needs.
And so back to when I was younger- opening my lunchbox to see mac & cheese, made with my favorite shaped pasta and cooked just the way I like it- made me a very happy girl.
