Quotulatiousness

July 19, 2012

Choice: re-evaluating the notion that too much choice is a bad thing

Filed under: Economics, Liberty, Science — Tags: , , , — Nicholas @ 09:37

There was a famous study several years ago that supposedly “proved” that providing too many choices to consumers was worse than providing fewer choices. At the time, I thought there must have been something wrong with the study.

The study used free jam samples in a supermarket, varying between offering 24 samples and only six, to test whether people were more likely to purchase the products (they were given a discount coupon in both variants). The result was that people who sampled from the smaller selection were more likely to actually buy the jam than those who had the wider selection to choose from. This was taken to prove that too many choices were a bad thing (and became a regular part of anti-consumer-choice advocacy campaigns).

Tim Harford explores more recent attempts to reproduce the study’s outcome:

But a more fundamental objection to the “choice is bad” thesis is that the psychological effect may not actually exist at all. It is hard to find much evidence that retailers are ferociously simplifying their offerings in an effort to boost sales. Starbucks boasts about its “87,000 drink combinations”; supermarkets are packed with options. This suggests that “choice demotivates” is not a universal human truth, but an effect that emerges under special circumstances.

Benjamin Scheibehenne, a psychologist at the University of Basel, was thinking along these lines when he decided (with Peter Todd and, later, Rainer Greifeneder) to design a range of experiments to figure out when choice demotivates, and when it does not.

But a curious thing happened almost immediately. They began by trying to replicate some classic experiments – such as the jam study, and a similar one with luxury chocolates. They couldn’t find any sign of the “choice is bad” effect. Neither the original Lepper-Iyengar experiments nor the new study appears to be at fault: the results are just different and we don’t know why.

After designing 10 different experiments in which participants were asked to make a choice, and finding very little evidence that variety caused any problems, Scheibehenne and his colleagues tried to assemble all the studies, published and unpublished, of the effect.

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