1. Is there a paradox of choices?
Multi-dimensional choices
Prepared by J. Scott Armstrong (details on him at jscottarmstrong.com).
Please inform Scott about errors and also make suggestions (armstrong@wharton.upenn.edu)
Scott has taken these slides from adprin.com, a site that he founded. That site contains interactive versions of these
slides, along with linked references, videos, and webcasts, all in PPT and PPTX format that you can download.
2. Is there a paradox of choice? Evidence
No. A meta-analysis of 49 published and
unpublished studies on the “too much choice
effect” found that there is no general effect
from the number of choices available
(Scheibehenne, Greifeneder, and Todd 2010)
For a short summary, click here.
3. Some choice is good for customers
That is obvious for consumers.
It is also good for sellers because having choices
changes the question from “whether” to buy to
“which” to buy.
4. Experts like having many choices
• Ever heard of a wine expert complain that a
store offered too many wines?
• But non-experts feel overwhelmed.
5. How can you satisfy poorly informed customer
who face many multi-dimensional choices?
___ 1. Offer one choice
___ 2. Offer a few choices
___ 3. Offer many choices
___ 4. Offer many choices organized in
uninformative categories.
___ 5. Offer many choices in
informative categories
See the next slide for the answer.
6. Findings
The best solution comes from organizing things
for customers, so they were most satisfied by #4
and #5 (they scored almost the same)
___ 4. Offer many choices organized in
uninformative categories.
___ 5. Offer many choices in informative
categories.
But #5 helps to educate the customer, so it is
best.
7. Conditions for choices
When there are many substantive multi-
dimensional options, organize them and
provide guidance (1.3.3.)
(Mogilner, Rudnick &Iyengar 2008)
They should be organized into meaningful groups of
about 7 to 10 choices, and guidance should be given
to uninformed shoppers.
For a further discussion, see (Persuasive Advertising, p 35-39)
and AdPrin.com
7
8. Based on this exercise, write a small application step for
yourself, and set a deadline, preferably within one week. If you
are working with someone else, share your application plan and
the results of your application.
• For example, organize the choices your firm offers more
clearly so that they can be easily understood and ensure that
lists for customer selections do not exceed 10 items.
Adapted from AdPrin.com
