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HOW TO MAKE
CHOOSING
EASIER
- TED Talk
by Prof. Sheena
Iyengar
•Average no.of
choices in a typical
day -70
•For CEO ‘s – 139
50% decisions < 9 mins
12% decisions >= 1hour
Choice overload
problems
Is this model of
offering people
these many
choices will work?
Engagement – more likely delay
choosing
Decision quality – probability of
making worst choices
Satisfaction – choosing less satisfied
even they are objectively better
Fail to do math of comparing and
contrasting
Attracted to
their advertising
End up picking
from that
stunning
display
1) CUT – get rid of extraneous
alternatives
- increase in sales
- decrease in cost
- improvement in
choosing
26 different kinds of
Head & shoulders
reduced to 15 by
P&G sales increased
by 10%
9th largest retailer-ALDI
offers 1400 products
Think how these choices
are different from others
HOW TO CUT?
2) CONCRETIZATION – make it real
- understand the consequences
associated with each choice
- product should be felt in vivid
sort way
3)CATEGEORIZATION
- how to tell them apart
- more choice
better choosing
option
- need to say
Something to the
chooser not to the choice-maker
- 400 magazines 20 categories better
Choice than 600 of 10 catgeories
4)Condition for complexity
- one can handle
lot more information
than they think they
can
- gradually increase the
complexity
- start off easy to learn how to
choose
2 most important insights:
1)More choices leads to less sales ,
decrement in satisfaction , choosing
quality
2)Handling more categories than
choices is easy.
Relevance of these insights with Indian
managers:
•These insights were related especially
for super markets, book stalls , etc.
•When the customers are provided with
more options their satisfaction level ,
decision quality decreases along with
increase in time which shows a great
impact on sales
•When a person want to buy a thing
according to his necessity he will be
having a clear idea about the category
according to his taste and need . So
providing more categories than choices
helps the customer to choose the best.
This presentation was made by
G. Hemalatha , NIT Andhra Pradesh
during a marketing internship under
Prof. Sameer Mathur , IIM Lucknow

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Sheena iyengar

  • 1. HOW TO MAKE CHOOSING EASIER - TED Talk by Prof. Sheena Iyengar
  • 2. •Average no.of choices in a typical day -70 •For CEO ‘s – 139 50% decisions < 9 mins 12% decisions >= 1hour
  • 4. Is this model of offering people these many choices will work?
  • 5. Engagement – more likely delay choosing Decision quality – probability of making worst choices Satisfaction – choosing less satisfied even they are objectively better
  • 6. Fail to do math of comparing and contrasting Attracted to their advertising End up picking from that stunning display
  • 7. 1) CUT – get rid of extraneous alternatives - increase in sales - decrease in cost - improvement in choosing
  • 8. 26 different kinds of Head & shoulders reduced to 15 by P&G sales increased by 10% 9th largest retailer-ALDI offers 1400 products
  • 9. Think how these choices are different from others HOW TO CUT?
  • 10. 2) CONCRETIZATION – make it real - understand the consequences associated with each choice - product should be felt in vivid sort way
  • 11. 3)CATEGEORIZATION - how to tell them apart - more choice better choosing option - need to say Something to the chooser not to the choice-maker - 400 magazines 20 categories better Choice than 600 of 10 catgeories
  • 12. 4)Condition for complexity - one can handle lot more information than they think they can - gradually increase the complexity - start off easy to learn how to choose
  • 13.
  • 14. 2 most important insights: 1)More choices leads to less sales , decrement in satisfaction , choosing quality 2)Handling more categories than choices is easy.
  • 15. Relevance of these insights with Indian managers: •These insights were related especially for super markets, book stalls , etc. •When the customers are provided with more options their satisfaction level , decision quality decreases along with increase in time which shows a great impact on sales
  • 16. •When a person want to buy a thing according to his necessity he will be having a clear idea about the category according to his taste and need . So providing more categories than choices helps the customer to choose the best.
  • 17. This presentation was made by G. Hemalatha , NIT Andhra Pradesh during a marketing internship under Prof. Sameer Mathur , IIM Lucknow