Thursday, December 29, 2011

More Choices, Fewer Sales


The trick, it seems, is finding the sweet spot for your product: offering enough choices to ensure that a customer can find a satisfying product, but not so many that the customer will be bewildered or demotivated.

- A 2000 study at Columbia University compared consumer behavior when confronted with a selection of either six or 24 gourmet jams in an upscale grocery store. The bigger selection did indeed cause more customers to stop and check it out – 60% vs. 40% for the limited selection. The interesting part, though, was the purchasing behavior. While 30% of the customers presented with the limited selection made a purchase, a mere 3% of those who saw the extensive selection bought something

See When Choice is Demotivating: Can One Desire Too Much of a Good Thing? Iyengar, S. S., & Lepper, M. Journal of Personality and Social Psychology, 79, 995-1006. (2000).]

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