Day 104:) The Jam Study

Does overdose of choice make consumer less likely to buy the product?

We generally assume that more choices lead to better sales for the shopkeepers and the companies. However, is it true?

Back in 2000, psychologists Sheena Iyengar and Mark Lepper conducted the Jam study at the Bay area supermarket Draeger’s Market to analyse how too many choices affect consumers buying behavior. On a day you will found a table with 24 different jams and on the alternate day just 6 jams.

To which table will you be more attracted and from which table you are likely to buy?

In General, people are more attracted to the table 24 jams as we like to see more choices. However, when it comes to buying. Few people were likely to purchase from that table. On the other hand, the table with just 6 jams generated 10 times higher sales. It is counter intuitive to see less choices leads to more revenues for the shopkeeper.

After the study was published, Sheena was approached by Vanguard Group, one of the largest mutual fund companies in the world. They were looking at 900,000 employees at various companies who were signing up to investment in the retirement plans. They found that as they provided more options to the people. People who were signing up were decreasing. The group offered roughly 2 to 60 options. Vanguard was not the only victim. Procter & Gambler had a surge in its sale after it removed some of products to have fewer choices for the consumers.

The more variety you have, the more difficult it is to choose one.

Number of options need to balanced. In 2015, a new study was published by analysing 99 Paradox of Choices studies. The study found few situations where less choices boost sales:

A) When people have less time to make the decision

B) When the product is complex

C) When it is difficult to compares with other products

D) When consumers don’t have a clear preference.

People are like to make poor choices when they are given more options and better choices when they are given less options.

It is highly like that you will be more attracted to the first image but will be able to make a decision quicker and better with the second image.