Is it better to have more or fewer options?

Choosing among multiple options can be overwhelming, affecting consumers' decisions and satisfaction. But, contexts where variety is limited can also decrease their satisfaction. This article explores the phenomenon of choice overload and choice deprivation and what we can do from Behavioral Science.

Have you ever felt overwhelmed when making a choice, whether it's a product at the supermarket, a dress at the store, or a movie on a streaming platform?

With hundreds of options available, the simple task of choosing can sometimes become an exhausting experience. This phenomenon is known as “Choice Overload,” and refers to the difficulty of making a decision when we have too many options available to us [1].

Choice overload can greatly influence consumer decisions and behaviors. For example, the iconic jam study demonstrated how the amount of choice consumers face influences their interest in the product they buy and their final purchase behavior. In one supermarket, the researchers offered jam tastings to customers in two different situations [2]:

·      Situation A (more options): customers could choose from 24 flavors.

·     Situation B (fewer options): customers could choose between 6 flavors.

What do you think happened? 🧐

Although more people stopped by the stand to taste when there was a greater variety (60% of those passing through the area) than when there were only 6 options (40%), the purchase percentage was significantly lower (3%) compared to those who had only 6 options (30%)*.

Why does this happen?

When faced with a large number of choices, our mind tends to experience what we call “decision fatigue”. Choosing becomes exhausting and we worry that the selected option may not be the best one, which could lead to frustration, dissatisfaction, or regret. In contrast, when choices are limited, our expectations are more manageable, which can facilitate decision making and increase satisfaction.

This paradox -more choice, less satisfaction- has important implications for companies. Organizations tend to think that offering a wide range of products will attract more customers, but fewer choices may generate better purchasing results.

Should you reduce your product lines or limit the breadth of your offering to simplify choice for your customers? Not necessarily. In fact, what happens if, on the contrary, we present too few options to our customers?

Too much choice is not the only problem. In contexts where variety is limited, consumers may experience "Choice Deprivation", which can also decrease their satisfaction. A study of more than 7,000 participants from six countries found that choice deprivation is more common and harmful than having too many options. [4].

What can we do from Behavioral Science?

Companies should find a balance between both extremes to maximize customer satisfaction, keeping in mind that: context is very important!

With the help of Behavioral Science, we can take a more realistic view of the customer decision process, use valuable tools to understand the context in which they make decisions (choice architecture) and identify where and when they may experience excess or scarcity of options. Through this deep, evidence-based understanding, we will be able to design environments that facilitate customers' decision making and enhance their experience both online and offline.

If you want to find out how, keep reading this article on the theory of nudging.

Silvia Cottone

Behavioral Science Consultant & Worldwide Speaker

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[1] Schwartz, B. (2004). The paradox of choice: Why more is less. HarperCollins Publishers.

[2] Iyengar, S. S., & Lepper, M. R. (2000). When choice is demotivating: Can one desire too much of a good thing? Journal of Personality and Social Psychology, 79(6), 995–1006. https://doi.org/10.1037/0022-3514.79.6.995

[3] Reutskaja, E., Cheek, N. N., Iyengar, S., & Schwartz, B. (2022). Choice Deprivation, Choice Overload, and Satisfaction with Choices Across Six Nations. Journal of International Marketing, 30(3), 18-34. https://doi.org/10.1177/1069031X211073821

(*) «Of the 242 customers who passed the extensive selection display of jams, 60% (145) actually stopped at the booth. In contrast, of the 260 customers who passed the limited-selection display of jams, only 40% (104) stopped».