92 - People Want More Choices And Information Than They Can Process

Too Many Choices

• We are inundated by a wide variety of options in our daily lives. When we go to the store, we are presented with dozens of options for similar products. This can range from things like clothing, food, and technology- and it can be a little overwhelming at times. However, if you ask people whether they prefer a few options vs. a wide variety, a majority prefer having more options. Despite this, providing as many choices as you can could be a potential pitfall.

The Jam Study

• Sheena Iyengar and Mark Lepper conducted a study about choices in 2000. Specifically, the study gauged to see if a consumer presented with too many choices would simply not choose at all. The researchers set up the study in a grocery store and acted as store employees. They offered samples of jam, yet would alternate the selection periodically. One setup had six choices to sample, while the other had twenty-four.

Visitors

• When there were twenty-four jars of jam to sample, 60% of shoppers would stop and try. However, when there were only six jars, about 40% of customers would stop.
• So having more options is better, right? Well...

Sampling

• When people stopped at the table with 24 types of jam, they'd only try a few. Similarly, this was also the case when there were 6 jars of jam.
• Typically, people can only remember about 3-4 things at a time, which means they can only decide around 3-4 things at a time. So, which table saw more purchases?

Sales

• 31% of the people who stopped at the table with 6 jars ended up making a purchase. But at the table with 24 options, only 3% actually bought anything. Despite more people stopping by, there was a significant drop in purchases.
• So why do people want more options despite this?

Takeaways

• In a way, information is addictive. It triggers our brains to produce dopamine, even as the options become overwhelming. However, this significantly impacts a person's ability to make a decision.
• So, be prepared to limit your options to your clients to avoid these scenarios. Provide around 3-4 choices instead of flooding them with too many. If you need to provide more options, try doing so in a creative way, such as grouping them into subsets.