Preview

Choice Overload Problem

Good Essays
Open Document
Open Document
456 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Choice Overload Problem
In the video, Sheena Iyengar argues that availability of many choices causes to reduction of engagement, decision quality and satisfaction. She emphasizes that people need to make many decisions in daily life and since they cannot consider all of the choices available by doing the math, some customers may make a wrong decision or even refrain from buying at all. Then she proposes some solutions such as: Cut (reduce the choices), concretize, categorize, complexity (low to high choice condition).
The examples and result of the studies are persuasive enough to me since I have concluded the same results considering my own choices. Although it is not mentioned in the video I think this concept can be link to post purchase dissonance, which is the situation when we were not sure if we made the correct decision and think about the possibility that other alternatives we rejected could have been better, leading to an inconsistency. While doing shopping, I feel the same all the time unless I have a prior knowledge or brand loyalty. For example, I sometimes buy nothing because of choice overload due to fear of being mistaken or I try to reduce dissonance after the purchase in some ways: Searching a conforming evidence to justify my decision like “Many people I know are buying this brand, it must be good”, ignoring any information about the alternatives or downgrading the importance of the decision like “It is just a chocolate, not a big deal”. After this, if I am still dissatisfied, the options are canceling the purchase or not to purchase again.
Moreover, the video reminded me another video “Saving for tomorrow, tomorrow” in which Shlomo Benartzi talks about planning fallacy. One of the examples was about the comparison of donation rates in Germany by 12%, and Austria by 99%. The reason was that while taking driving license in Germany people were supposed to check a box if they want to become a donor, and in Austria check the box if they do not want to. Thus he concluded

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Chapter 18

    • 5349 Words
    • 22 Pages

    The importance of the decision to the consumer is one factor that influences the probability and magnitude of postpurchase dissonance.…

    • 5349 Words
    • 22 Pages
    Satisfactory Essays
  • Better Essays

    Thaler and Sunstein provide a framework for decision making that can be applied and used across the board for health, wealth, and happiness, as well as other facets of life. They introduce behavioral economics to explain how decisions can be influenced so that a specific outcome is chosen. To lay the foundation for the decision making stage, Thaler and Sunstein establish the significance of a choice architect. A choice architect has the responsibility for organizing the context in which people make decisions (Thaler & Sunstein, 2). According to Thaler and Sunstein being a choice architect requires planning and knowledge, as the architect ultimately chooses an arrangement or environment that will provide individuals with the autonomy…

    • 1091 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    • A Cornucopia of Choices: What are the causes and effects of consumer illusion of choice?…

    • 467 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The more options there are to choose from the chances of the consumer actually picking one decrease. Also increased expectation for the particular chosen option is increased, making it easier for the consumer to feel dissatisfied due to the option lacking in any way. Once everything is decided, the consumer can feel further discontent is when they think about the other possibilities if they had chosen…

    • 884 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    However, just because consumer decision making behavior is often complex and capricious is no reason to just throw up our hands in despair. There are effective and systematic ways of thinking about how people interact with brands and and metrics to help guide us.…

    • 1944 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    In Predictable Irrational, Ariely begins with the conclusion that people always search for comparisons to make decisions become easier, but doing this leads us to sometimes include irrelevant factors that make us select the alternative that we would normally not have selected. When consumers do not know what they want, adding these irrelevant factors helps them decide on at least what they do not want. This goes further on to…

    • 648 Words
    • 3 Pages
    Good Essays
  • Good Essays

    3. Recall an occasion when you experienced cognitive dissonance about a purchase. Describe the event and explain what you did about it.…

    • 482 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Marketing Concepts

    • 609 Words
    • 3 Pages

    Consumer decision making is explained and viewed as a complex process that is conducted in steps in which consumers identify their needs, collect information, evaluate alternatives, and make the purchase decision. Some refer this process as problem solving phenomena. These actions are determined by psychological and economical factors, and are influenced by environmental factors such as cultural, group, and social values. Consumer’s decision making differ in many ways, just as problem solving…

    • 609 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Principles of individual decision-making are people make tradeoffs, when people choose one thing they give up something else, rational people think at the margin, and people respond to incentive. People make tradeoffs express by what would choose between items the one that best meets their requirements (Mankiw, 2011). Margin thinking by rational people consists of making a decision is just over the acceptable choice. Possibilities are that individuals are motivated to a decision by monetary profits (Fox, 2010).…

    • 438 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Fm Syllabus

    • 1924 Words
    • 8 Pages

    Firms and Markets Professor Joyee Deb Office: KMC 7-­‐69 Telephone: (212) 998-­‐0925 Email: joyee.deb@stern.nyu.edu FIRMS AND MARKETS (COR1-­‐GB.1303.S.31.SP13) Course Description The goal of this course is to give you some insight into how markets work. The course is structured in two parts. In the first part of the course, we study decision making by consumers and firms.…

    • 1924 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Mgt 321

    • 697 Words
    • 3 Pages

    The benefit of an almost inexhaustible supply of facts, figures and data can often be a double-edged sword in our increasingly complex, information-overloaded world. While having all the pertinent facts is critical to good decision-making, at the same time conflicting information can leave us stuck and uncertain of how to proceed. However, behavioral scientists have found that, remarkably, as decision complexity increases, we actually rely on less information to form our decision, not more. In fact, rather than effectively using all the available information, we often rely on a single rule of thumb as a reliable shortcut to making a good decision. Understanding these "decision shortcuts" can teach us to make our own decisions more effectively and also make us more persuasive ourselves. Many of these shortcuts fall into patterns that social scientists have seen over and over; let's look at two in particular. Social proof suggests that one very efficient route to a good decision is to look at how many others are making the same decision: if everyone else is buying it then perhaps I should too. On the other hand, uniqueness suggests that we should be persuaded by the unique and rare features offered in a proposal: if this is the only car with heated seats, I should totally buy it! Work by social scientist and marketing professor Vladas Griskevicius suggests that often the emotions we experience immediately before we are presented with a message or a proposal can determine which decision shortcuts influence us most. In the study researchers showed subjects a series of short film clips that were designed to induce either a feeling of fear ("The Shining") or a feeling of romanticism ("Before Sunrise"). A control group read a short story that evoked neither feelings of fear or romance. Immediately afterwards participants were shown a series of advertisements that employed either social proof messaging or uniqueness messaging. One…

    • 697 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Cognitive Dissonance

    • 717 Words
    • 3 Pages

    Cognitive Dissonance is the inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions (Page 15 ESSENTIALS of MARKETING 6e). Cognitive Dissonance is also called buyers’ remorse. This is usually after an expensive item is purchased and the customer is dissatisfied with the technology or quality and they wish they hadn’t bought it or researched more.…

    • 717 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Two products that can cause cognitive dissonance would be a house or a vehicle. Because if your not happy with your purchase that is two things that are hard to take back and get your money back.…

    • 298 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    storytelling

    • 522 Words
    • 5 Pages

    Brand Storytelling In Digital Marketing Bahriye Goren, Art of Branding Measuring & Managing Brands in a Digital World NYU Stern School of Business, May 2013 What is Branding?…

    • 522 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    The Basic Economic Problem

    • 1159 Words
    • 5 Pages

    Trade-offs when making choices: Making a choice made normally involves a trade-off – this means that choosing more of one…

    • 1159 Words
    • 5 Pages
    Good Essays