2. ABOUT THE SPEAKER
• Sheena S. Iyengar is the inaugural
Professor at the Columbia Business School
• She is known for her research on Choice –
why it matters, how we choose, and how
we can choose better.
• Website- sheenaiyengar.com
4. IMPORTANT INSIGHTS
• We choose not to choose, even
when it goes against our best self-
interests.
• More the number of choices, more
likely people were to completely
avoid the options available.
5. NEGATIVE IMPACTS OF CHOICE
OVERLOAD
• ENGAGEMENT-People tend to
procrastinate when they
encounter more choices
• Because they enjoy gazing at the
choices available to them
6. NEGATIVE IMPACTS OF CHOICE
OVERLOAD
• Quality – People are more likely to make worse
choices. Hence the quality of choice reduces.
• Satisfaction – People are less happy with their choice,
even if their decision is objectively better.
7. IMPORTANT INSIGHT
• There are 4 techniques that can be used in business
to prevent customer overload in customers:
1. CUT:
• Reduce the redundant options. This will increase
sales, and lower costs.
8. • When Proctor and Gamble reduced
their Head & Shoulders line from 26
products to 15 their sales increased
10%.
• Aldi offers only 1400 products
(compared to Walmart offering
100,000) and is the 9th largest retailer
in the world
9. 2. CONCRETIZATION:
• In order for people to understand the differences between
the choices, they have to be able to understand the
consequences associated with each choice
• The consequences need to be felt in a vivid sort of way, in a
very concrete way.
10. 3. CATEGORIZATION:
• We can handle categories more than we can handle
choices. It creates better choosing experience.
11. 4. CONDITION FOR COMPLEXITY:
•Gradually increase the complexity
•Allow people to decide easier first then proceed
to the largest
•People get exhausted making the largest decision
first and will tend to pick the default thereafter
12. Why and how are these
insights relevant to
managers in India?
13. • A manager in Indian context must be aware of the choices
provided to the customers in Indian market. Hence one
should inculcate the following strategies as suggested to
prevent situation of customer overload
•Cut the number of choices
• Concretize the consequence of choice in vivid way
•Categorize the choice
• Condition for complexity
14. RECAP:
• More the number of choice, more
people were likely to avoid
• Impact: Poor engagement, poor
quality and less satisfaction
• Techniques to curb customer load-
cut, concretize, categorize and
condition for complexity
15. DISCLAIMER
This presentation is created by
Soma Bhattacharya
CCET Chandigarh
under the guidance of Prof.
Sameer Mathur, IIM Lucknow
during the Marketing Internship