A study showed that giving consumers too many choices might not be a good idea. While extensive (many) choices have proven to be appealing initially, they undermine the subsequent satisfaction and motivation of choice-makers.
With these findings, what should companies or marketers do when it comes to promoting products and deciding how many choices to provide to consumers?
Find the optimal choice set
More choices does not equate to more sales anymore. Marketing research must be done to understand consumers’ preference for more or less choices.
Also, monitoring sales carefully when increasing or decreasing variety can also help. When Procter and Gamble decreased their versions of Head & Shoulders shampoo from 26 to 15, sales increased by 10%.
Always start with many choices and slash it after
Always offer or appear to offer a wide range of choices to first attract consumers’ attention and then narrow down their set of possible alternatives.
Get sales people to recommend just 2 to 3 alternatives to customers, or provide adequate information on packaging to let them know the few alternatives that would suit their needs best.
For example, The Face Shop sells facials masks, and on the shelves you will find the functions of each available mask (Hydrating, Soothes inflammation, Collagen etc.). Some masks have multiple benefits and different scents, consumers can quickly eliminate those that don’t fulfill their needs and are left with a few alternatives to choose from.
This would not reduce their initial enjoyment (many choices) and at the same time, increase choice satisfaction and decrease future regret.
Sales people’s recommendations also play a big part in consumers’ subsequent satisfaction and regret. Facing an extensive set of choices, consumers mostly find themselves heeding salespersons’ advice. Train them to give adequate recommendations and advice.
Get endorsers, experts or word of mouth to promote your products
Having an extensive choice set might cause consumers to “surrender the choice to someone else”.
This creates an opportunity for marketers. Getting experts or well-liked celebrities to promote products might help consumers feel less overwhelmed and make more certain decisions.
Facilitating genuine product reviews, testimonies and word of mouth recommendations are also helpful for consumers to be more certain of their decisions and minimize regret.
Be the default choice
Consumers are not limited to choices within a certain brand or category.
When buying a present, Ferrero Rocher chocolates tries its best to convince consumers that it is the best choice of gift. Even though the brand itself does not offer many choices, it knows very well that other chocolate brands and even categories of gifts contribute to the consumers’ huge choice set. When consumers choose a default option, you want them to choose yours.
Another example would be cameras; with so many models under one brand and so many brands around, brand loyalty and image are important to help consumers make decisions they would be satisfied with.
If I am loyal to Canon or think it’s good, even when faced with an extensive set of models, I can be more certain of my final choice and expect lower probability of regret. In fact, I will enjoy the decision-making process as well!
Study by Lepper and Iyengar
